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Entries for archive: 2009

Found 13 entries.

New Outlook for 'Retire at 40'

Over the past year, many things have changed. I have grown up a little and maybe matured a little too. I have also been pretty busy with lots of other things. One of which was work. This wasn’t good.

I’ve also had a rethink about this here blog. I think having it’s own domain name (www.retire-at-40.com) was good but I think I need to start putting all of these things in the same place. I’ve always had lots of interests and that site ended up being in the peripheral vision.

Instead, I’m bringing it in to my personal site, one where all of my interests are catered for. I like writing (as you can tell) and having sections for my other interests just make it a whole lot easier. Easier to manage, quicker to post and more likely I’ll keep it going.

!2 chilts.org

The new chilts.org is hosted on Google AppEngine which is awesome since it’s free! And you know what free means when you’re trying to retire at 40 :)

It also means I can flex my own programming talents and finally write the site/blog software I’ve always wanted. I don’t need the complexity and clutterness of WordPress or any other blogging system. I don’t need plugins to help me do things since I just want the basics. I actually want slightly different requirements too, and Lollysite (the software I wrote for AppEngine) now does 98% of what I actually need.

!2 Letting Go

Finally, I have decided to rethink the best way to present Retire at 40. On the old site, I was too caught up in statistics, subscribing people, advertising, commenting on other sites and everything that goes with it. It was a right pain.

Instead, I’m just going to let all that go. I’m going to write for the enjoyment of it. Maybe, yes, I want this blog to make money in the future but for now I’m just going to let it grow naturally.

Now, I’m just going to concentrate on writing good articles for my audience. Which is the right way forward.

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Inserted: 2009-12-30 06:25 (7 months ago)

Financial Balance and Doing What Makes You Happy

Many articles I have read over the years talk about Financial Balance. Many give you various percentages which you could (should?) follow and others break it down even further. For example, one thought is to break your net income into the following areas:

• up to 50% on NEEDS
• up to 30% on WANTS
• the rest (20%) on SAVINGS

Breaking these down further can lead to more complex solutions and that is something you should decide, but before even trying to break it down, consider why you should do this.

Being Happy

Most of this blog, as well as others I read, is about being happy. It’s not just about personal finance, saving money or being thrifty, it’s about doing what makes you happy. When you realise that having the freedom to do what you want because of financial independence that is a powerful thing. And whilst you might not be in that situation now, but heading towards it over the next few year, means that whatever you do, will make you happy.

Making homemade jam, wooden toys from the ends of spare planks in the garage, pizza dough freshly made in the kitchen, a crayon pocket for the kids and a sock puppet from old worn out socks are all very enjoyable and also cheap and easy to make. The thought that a homemade toy says rather than a plastic thing from the shop is very satisfying.

So where does all this fit in with the percentages above. Well, making all these things at home is way cheaper than buying them from the shop, so firstly they help with actually saving money. That goes towards your 20% savings.

Secondly, doing all of these activities is fun! Either by yourself, with the kids or for other people, they all give lasting satisfaction which means you feel good. It also helps fill in your time instead of watching TV, doing retail therapy or just generally being lazy.

Finally, you can fill your time with wants which are fun and cheap, rather than wanting expensive DVDs, chocolate or expensive hobbies. Of course, there is nothing wrong with all of these things if they are in balance with the rest of your life and your way of life. Better to be happy and healthy, than rich or broke. Finding that balance can help keep you on track to financial independence as well as on track to enjoying your life.

Labels: budgeting, giving, working

Inserted: 2009-12-30 03:06 (7 months ago)

Spending Your Way Out of a Recession

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I know people were talking about this a few months ago but finally I found some common sense. By a bank of all things.

Earlier this year, I saw people interviewed on the TV and they said things like:

I'm spending our way out of the recession

or

Yeah, it [the recession] is not affecting me. I just keep spending

And I would think "wow, these people have no idea".

Trying to Change the World One Person at a Time

Sometimes, changing the world one person at a time can work but pretending that your spending will help us get out of the recession is a bit silly.

The amount of money that you are in control of is such a tiny fraction of what is required, you'd need the whole world to think and act similarly.

Instead, you should be worried about your future, have an emergency fund and be a little more sensible with your money.

Because you never know what's down the road.

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Inserted: 2009-06-18 22:57 (1 year, 1 month ago)

Paying off my Mortgage in the Current Economic Climate

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At the moment, the economy doesn't seem to be too great. Of course, many people are saying that they haven't felt any impact at all ... but these are the lucky ones who's jobs are relatively stable.

So far, I'd say that I was one of the lucky ones. To me all of four things has happened in the past year:

1. I got a pay-rise
2. I cut my spending
3. there has been tax cuts
4. there has been interest rate cuts

Therefore, with all these things going on, I am able to pay off more of my mortgage since I am currently on a floating rate.

The Plan

Since I have split my mortgage into a revolving and a repayment mortgage, I am able to pay a little more on both at the present moment. There will be no penalties since they are both on floating rates.

The overall plan is to eventually fix the larger of the two amounts (the repayment part) and keep paying a little extra on that. I shall also keep adding as much as I can afford to my revolving mortgage since that also acts as my emergency fund.

Attacking on Both Counts on Both Mortgages

By attacking both mortgages I am able to start bringing down the principal a lot faster than I ever have and because some of it is my revolving mortgage, I don't have to worry about having it disappear since that acts as my emergency fund.

I'm also attacking the larger of my mortgages on two counts too, since my interest has come down and I've upped my repayments.

All in all, I'm currently on track to repay my home loan in just less than 8 years. That would take me to a total of 11 years since the mortgage started.

Not a bad saving on all that extra interest I'd otherwise have to pay.

Labels: planning, repaying

Inserted: 2009-06-16 21:22 (1 year, 1 month ago)

Paying Bills per Month Rather than per Year

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There are two trails of thought in my head these days. Firstly, the idea that I will retire at 40 once I am financially independent.

The second is that of simplifying and downsizing my life and my needs.

The funny thing is, sometimes these ideas aren't quite orthogonal and one influences the other, sometimes to it's detriment.

Paying Bills per Month

Recently, I changed banks. I did it for a few reasons, one of which was that I could do more of my banking online or over the phone. I rarely - if ever - need to go to the bank now and in fact they don't even have premises since they are physically inside Post Shops.

This bank switch has made my life simpler and easier and I like it.

Whilst I was switching though I also decided to change a couple of other things too. The main one being that where possible, I decided to change from paying some bills quarterly or yearly to paying them monthly.

The reasons for doing this I will come on to in a second but firstly, let's see why this is now a disadvantage.

Going Against My First Plan

Becoming Financially Independent means being careful and clever with your money. Yet paying for things monthly may go against the being clever bit.

For example I have to pay my rates quarterly. They are due at the start of the 3rd month of each quarter, therefore the money for the first two months sit in my account earning money for me. But by changing it to monthly payments means that I no longer get that advantage.

Also for other bills that are paid yearly, I may have to pay everything up front but usually you earn a slight discount for doing it that way.

Therefore in both of these cases, switching to a monthly payment plan is probably not the best thing to do financially speaking.

Going With my Second Plan

Overall however, paying these bills monthly makes things a lot easier and therefore makes my life simpler.

That is, instead of putting money aside into a Freedom Fund and having to calculate how much to put in it each month and then paying it at the beginning of each year I instead have a Bills Account which receives the correct amount every single month.

I know that a Freedom Fund isn't the hardest thing to do and I still have one for those bills I can't pay monthly but I also like the idea that I'm paying for something as I need it.

In Conclusion

Whilst paying for some bills quarterly or yearly may have a financial advantage, the ease and simpleness of paying them monthly outweighs pure monetary gain.

This may or may not work best for you but how do you do it and why?

Labels: budgeting, banking, spending

Inserted: 2009-05-12 21:18 (1 year, 2 months ago)

Shaving those Expenses: 10 Things to Think About Cutting Down

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After a few weeks trying to cut a number of expenses, I hereby offer you 10 things you can think about where you might be able to cut your bills or your monthly outgoings.

1) Lowering your Cable TV/Satellite Subscription

Or indeed, cutting it out completely. Think about it, how much time do you watch TV anyway. Not much? Then you don't need either Cable or Satellite. Watch it alot, then you probably need to cut down anyway.

I used to have Cable TV in a previous house which was about $60 a month, now saved.

2) Monthly Insurances

House insurance, contents insurance, life insurance, car insurance, income protection insurance, the list goes on. Every month you give money to someone else such that they can help you out if things go wrong. But how often do you check to see that you're paying the lowest price. You'd be surprised to learn you haven't reviewed your insurance in years.

I am planning an appointment with an insurance broker soon and I suspect I'll get to save somewhere between $20 and $30 each month on my insurances.

3) Utility Bills

With the shake up of most countries power over the past decade or so, it's pretty easy to find great deals on your electricity and/or gas usage. Just shop around and you'd be surprised at how much the smaller suppliers are charging compared with the old incumbents.

I've just change providers and will be saving about $25 a month.

4) Moving to a Lower Internet Plan

If you're not using your internet plan to the fullest, then you probably want to downgrade to the next plan down. This is especially true if you're not downloading lots of large files. You're probably using nowhere near what your plan allows you to.

I realised I was on a 20G plan and in only 2 months in the last 6 did I reach 8G or 9G. I've now lowered my plan to 10G and will probably look at the 5G and just pay for excess bandwidth if I use it. A saving of $25 a month right there.

5) Switching Banks

By switching banks you may be able to save various chunks of money here, there and everywhere. From service fees, withdrawal fees, other bank's ATM fees and a myriad of other fees which all add up, you might save a few bob.

I just switched banks, mainly for my mortgage, but by switching my current account and credit card too, I'll be saving $12 a month on account charges and about $15 a month on not getting credit card insurance. Also, $20 a year on the credit card fee and about the same to be in the rewards program. It all adds up.

6) Switch to Low Power Devices

Switching to low power light bulbs is an easy win, but think about switching your other devices to a low power one too. The washing machine and fridge would be two worth looking at.

Maybe it's not worth it if your current devices are still happy and working but when you have to replace them, it'll be well worth the time investigating the low power options.

7) Switch to Pre-Pay on your Mobile/Cell phone

Switching to pay only for what you use is a pretty good option in most cases. I know people who have switched to metered water and who are now saving a good chunk of money (people who would have in the past been subsidising the people who waste water unnecessarily). Why can't you do the same for your mobile? If you don't use it much switch to only pay for what you use.

I shall be switching to Pre-Pay soon and going from paying $20 a month subscription (+ calls) to paying $6 (to get a special offer) + what I actually use. I'm sure to save around $20 a month.

8) Lowering your Rent

Moving to a smaller place means you'd probably end up paying less rent. You might also have to get rid of some stuff that has been dragging you down the last few years. An increase in savings and an increase in life simplification will work wonders for your stress levels and your daily energy.

Moving from a three bedroom, to a two bedroom and now a one bedroom place has made me open my eyes as to what is important in life. Having stuff and clutter is not on that list. Also saving $220 a month isn't bad.

9) Moving to somewhere close enough to walk or bike to work

By moving somewhere where you can walk or bike to work means you get to save money and you'll probably end up saving time too (since biking is pretty quick once you get used to it). No buses or trains to wait for and no being angry at crazy and unreliable timetables.

Moving into town has meant that I not only have more money to save due to not having to bus ($100) but I also save now that I have sold my car. My fitness levels are up and my savings are bigger.

10) Anything else you regularly pay for?

Whatever you have that you pay for regularly is ripe to be analysed and figured out how much of that particular thing you actually need. Almost everything can be shaved slightly to give you those few extra dollars in your back pocket.

And as always, and for those of us who have seen the light about all of this, you know that shaving off a little of each bill here and there makes no difference to the quality of life but an enormous difference to your bank balance once added up.

So, get cracking on those regular payments and make sure you shave each of them and save a bit every month. By the end of the month, you'll be surprised at how much you're keeping instead of slipping through your hands.

Labels: banking, insuring, saving

Inserted: 2009-03-24 20:57 (1 year, 4 months ago)

Guest Post on Lazy Man and Money

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Firstly, welcome to all the Lazy Man and Money readers wandering over here to take a look round. Remember to subscribe to my RSS feed so you can keep coming back. And to all my readers, go and take a look at Lazy's blog (yes, he doesn't mind being called that) - it's a great read.

Short Term Sacrifices for Long Term Gain

My post over at Lazy's blog was originally called Short Term Sacrifices for Long Term Gain but in conjunction with Lazy we changed it to Sacrificing the Little Things for Early Retirement so his readers could get more of a taste of my background, why I started all this and where I'm headed.

I wrote the post in response to a comment I had on a previous blog post of mine, called Seeing the Old Me. Concetta put the idea in my head when she commented that by doing a four day work week, I was actually treating myself, all the time! I hadn't realised this at the time (though it makes perfect sense now).

I'd mentioned that I had been buying take-away coffees and treats for myself in reward for working too hard which brought back memories of the old me again. Working hard, playing hard but spending all of my money whilst doing it. Then I mentioned that I had to sacrifice things if I wanted to do a four day work week (oh, and retire early, mustn't forget that) - and by not spending my money on those 'extras' I could also afford to drop down a day at work. It turns out though that she was right and that having the extra day off is a huge treat, week in, week out.

If other people think that by not going to the movies that often or not having the flashiest car is a sacrifice, then that's fine with me. Neither of these things are that important to me and instead I'll make some fresh pasta, go out cycling or enjoy a bit of gardening instead. Better health and less outgoings.

Therefore a few small sacrifices gets me a much bigger reward - as always, judgement is in the eye of the beholder.

And funnily enough, these are also the same people who say "...and you can afford that?" when they hear you're working a 4 day week. Pretty funny, isn't it?

Thanks

So thanks again to Lazy Man for hosting my guest post and I hope you enjoy my article over there if you haven't read it yet.

Labels: saving, retiring, working

Inserted: 2009-02-28 08:40 (1 year, 5 months ago)

Personal Finance is Not a Destination, it's a Journey

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You've heard the phrase:

Life is not a Destination, it's a Journey

And like life, the road to financial independence doesn't lead you to a destination but instead just takes you on a road leading to a place you'd rather be but never actually getting you there.

Each junction on this road can also be considered a decision making time, a time when you can re-evaluate and a time to look back and figure out what you want to do to keep moving forwards. Forwards of course means heading towards your goals because if you didn't have goals you wouldn't know which way to was the right way to go.

Re-Evaluating Your Outgoings

In this post, I'd like to just concentrate on one particular aspect of these junctions and that is about re-evaluation. In fact even more specifically, re-evaluating your monthly outgoings like bills and suchlike.

Back in one of my first posts, I mentioned in my article on budgeting that I'd been doing various things over the years such that I was spending less on various things. Some of the bigger items I had cut down on were:

• rent (by moving to a smaller flat)
• travel (by moving closer to work)
• food (by not buying as many take-aways and making my own food)
• lots of other little bits and pieces

A few months after that, I also took some steps to make my monthly outgoings even less. I ended up selling my car and instead buying a bike for travel. That action in itself saved me over $250 a month, which is about $3,000 a year.

Can't be bad.

Spring Clean your Outgoings

Even though it's coming into Autumn in this hemisphere, for most of the internet world it is now coming into spring. As well as spring cleaning your house it is as good a time as any to also spring clean your monthly outgoings. This can be done in two ways.

You may want to turn and toss every single little thing but mostly you can just give things a quick dusting to make sure you've still got what you expect. In some cases, you just need to review what kind of plan you're on whether it's electricity, phone or subscription services.

I am currently going through a bit of a spring clean and I figure that by the end of it, I'll be saving well over $1,000 a year extra. Let me go through some of the things I've done in the past couple of months and a few more things on the table in the next couple.

• stopping my DVD mail subscription service
• switching electricty/gas providers to a cheaper option
• switching banks (to one with lower mortgage interest and less charges)
• changing credit card (to one with no fees and lower interest - not that I'd pay them any)
• stepping my internet usage plan to one with a lower price
• changing my home firewall machine from one drawing 100-150W to one which draws 5W
• switching my home/contents insurance to a cheaper supplier/option
• turning off my normal phone and getting a VoIP phone number instead

By doing all of these things, I suspect I can save upwards of $1,000 every year and quite possibly closer to $2,000.

For a start there's a $250/yr saving with switching energy suppliers and a $300/yr reduction by switching to a lower internet plan.

If I get rid of my phone, that's a $420/yr difference, minus about $120/yr for a VoIP phone, that's still a $300/yr saving.

I suspect I'll also save about $360/yr on home/contents insurance and realistically my bank fees/credit card fees will be lower by about $100/yr or more.

Just totting that up, that's a yearly saving of $1,300 without even lifting a finger (ok, I have to phone a few people but not much more than that).

See What You Can Do

If you've been living frugally for a while you might have already done all of these things and more, especially if you've been settled into one house for a while. In which case, maybe you don't need to review your situation.

However, it doesn't hurt to go through each of these things every so often just to see if something can be done. Let's say a new competitor is now supplying energy to your vicinity, it would be a shame to miss that opportunity.

Even just shaving off a little at the top of each and every bill you get can save you a significant amount of money per year. Add 10, 20 or even 30 years worth of compound interest on top and those small insignificant amounts start to add up to some serious money in the future.

So far my increase in savings have been well worth the effort I have had to put in and there are still more of those things on the list for me to go through and switch around or reduce. Overall, I'm pretty pleased already.

What other bills can you think of which can be easily reduced by either cutting back on a plan or switching supplier?

Labels: banking, insuring, saving

Inserted: 2009-02-25 01:15 (1 year, 5 months ago)

Frugal or Cheap

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There seems to be some debate in the PF world at the moment about what the terms 'Frugal' and 'Cheap' mean. I think there are some interesting points but in all honesty I really think that it is in the eye of the beholder.

Personally I think I prefer the term Frugal rather than Cheap due to the same reason DebtDiva mentions ... that cheap has negative connotations, but mostly it doesn't matter to me.

I have known a number of people over the years who have said things to me like "I'm too cheap to buy [this] or [that]". They obviously don't care about any negative feelings towards being 'cheap'.

To Me, It Doesn't Matter

In reality, it all amounts to the same thing anyway, that these people who call themselves frugal or cheap look after their money a bit more than those who don't. Possibly by not spending as frivolously, saving well and looking at the long term needs rather than the short term wants.

The One Thing I Remember

There is however one phrase that I try to remember when I am purchasing something. Generally I don't go for the cheapest stuff but at the same time I don't go for the most expensive either. I've always been a middle-of-the-road guy when it comes to such things (of course, it is very dependent on what it is you're buying).

As it turns out, this particular phrase has stood me in good stead over the years and I somehow manage to make my purchases last years longer than what some other people would. By not buying the cheapest thing, my possessions usually last as long or longer than I need or want them to. Adhere to this phrase and you'll probably be able to do the same too:

Only the rich can afford to buy cheap!

It's one of those phrases I heard once and never forgot. The friend who told that was well on the way to retirement at an early age (probably mid-forties and he could stop work - not that he will) and I've thought about it all the time since.

How do you see the words 'frugal' and 'cheap'? How about 'thrifty'? Does it really matter?

Labels: planning, budgeting, shopping

Inserted: 2009-02-22 15:56 (1 year, 5 months ago)

Turning a Rental House into Completely Passive Income

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A rental house is a great way of earning some passive income and, if luck should have it, a great way to increase your net wealth too.

I have mentioned before what passive income is and why you need it, but I thought I'd just let you know my latest development in this area - specifically my rental house.

It's not a big development mind you, but I'll tell you anyway.

Having no Time

Recently, as most of you already know, I have been working far too much. It's not something I'm going to make a habit of mind you but it did make me think about some things. More specifically my tenants required some attention to a couple of issues in and around the house.

For one of them, it was as easy as getting an electrician in and eventually just receiving a bill in the post and paying it. Pretty easy stuff.

However, one of the other items that still needs doing is something which I (or someone else) needs to look at first.

I then realised that I just didn't have time to actually go up to the house. It's about 50km away and not having much time through the week or even the recent weekends has meant that it was pretty difficult to get over there.

Then it hit me, that even if I wasn't busy, would I really want to go up there anyway on my days off. Not really no, so I decided to make the rental property almost completely passive. It hadn't taken up too much time in the past but it was always a worry on my mind.

Getting a Property Manager

Deciding to get a property manager was at first a difficult step. I'd thought of it long ago but didn't really want to pay anyone to do it. As I said, I hadn't had to do too much before but my view of some things have been changing recently.

You guys know that time is more important to me than money so I decided to maximise my available time. By hiring a property manager I now get even more of my time to myself and I get less worries too.

That can't be bad.

The Costs

Of course, a property manager doesn't come for free. He takes a snap at every single week's rent and of course when things needs to be done, he charges. He's providing a service to me and it's one I'll ultimately benefit from so that's okay with me. I also think it's pretty good value for money too.

These costs however are also counteracted by a couple of things.

Firstly, he will be reviewing the property, the house, the garden, the rent and various other things for me. He'll also advise me on how much properties like mine are going for in that particular location. I suspect the first thing he'll do is put up the rent. In fact, if he puts it up by 10% and I'm paying him about 7.5% then I'll still come out better off.

Secondly, his costs are therefore my expenses, which are claimable back at the end of the year against any income the property has generated.

The non-Monetary Paybacks

Finally, I get paid back in having extra time, more freedom and more peace of mind.

Which you all know is pretty high on my list of simplifying life and enjoying more of my own time.

Labels:

Inserted: 2009-02-16 19:38 (1 year, 5 months ago)

Seeing the Old Me

Over the past few weeks, I have been working extra hard. Too hard in fact. Long hours, many days and that means I have a problem.

Well, I say one problem, it's more a group of problems. In fact, I seem to be getting quite a few problems that my little group of them is becoming quite a collection.

You see, because I've been in work too much I haven't been living my life the best way I should.

Reasons for Having Problems

My goal when I started this blog off in September was to work a four day week. That lasted two months until I had to work a five day week. In January I was working at least a six day if not a seven day week, and they were pretty long too.

This causes no end of problems.

The reasons for the problems however are all due to one thing. Time.

Time.

That one little word.

Say it again... time.

It's something that I have had very little of recently. That small, four letter, very smooth, round and mellow word is the cause of many of my more recent problems (which I shall get on to shortly). Of course, it hasn't been because I have had so much of it but rather because I have had so little of it.

Effects of Lack of Time

Going shopping has been a pain. The fact that my local supermarket which is on my walk home from work is open until 11pm has been a great lifesaver since my 10 or 12 hours days have given me little in the way of opportunities to actually go and get food - which has mainly consisted this month of buying milk, bread and stuff to put on sandwiches. And of course, since I just had to go whenever I needed, I always forgot to take my re-useable bags with me.

My home life has also been a bit chaotic. I've been washing and hanging my clothes out at lunchtimes since they seemed to be the only parts of the day I could actually relax. A quick walk home, put in some washing, make some food, hang the washing out, walk back to work. It still makes it busy and I never really got chance to sit on my back deck and watch the world go by.

Granted, work has been buying (mostly) food each evening to keep us alive but of course, the food bought then mostly consists of take-aways which I got pretty tired of eating quite soon. Pizza is okay every now and again, but three times in a week is not good. Added to that is the fact that they aren't really that healthy for you and I'd much rather be eating something of my own creation.

Every so often I considered that I would be able to make something at home too (and recently have been forcing myself home for tea too) but many times I would buy something with the intention of cooking it but never getting around to it. So I even had to throw away food which is something I try not to do at all these days. So there is one way I've wasted money.

The Things I Have Reverted To (and Hence Wasted Money)

Occasionally I'd be leaving work at a half decent hour but of course felt too tired to cook. Hence I would end up eating out at prices which are about twice you can make two wholesome meals for at home.

I also even reverted to buying chocolate, coke or even coffee during those really stressful days (when I really thought that I should treat myself). Firstly, we know how much these little things add up over time but also upon reflection they just aren't worth it. Even though I was working hard because I was asked to, I almost slipped back into the vicious cycle:

• I treated myself because I was working too hard
• I was working hard because I needed the money
• I needed the money because I was treating myself

Compare this to when I was working a four day week and you can see that it is an upwards spiral:

• I could work a four day week because I wasn't treating myself
• I didn't have to treat myself because I didn't feel all stressed out
• I didn't feel stressed out because I was working a four day week

As you can see, I'd rather be in the second upward cycle than the first downward one.

It was Close

Certainly there were times this month when I spent too much, either on food or otherwise. Also since I wasn't going out on my bike as much (a free activity), some of the other activities I was getting up to were things that cost money and were reasonably expensive. They also happened to be the most convenient. It turns out that not only did I have very few hours of spare time but January was also the most expensive month I've had in months.

Go figure.

It doesn't make sense does it? But it's all perfectly explicable. To relieve the tension, the strain and the stress, I turned to the quick, easy and expensive options. My old, dark days were filtering back through the dark clouds.

At one stage in the month, I was even thinking to myself "Creepers, maybe I have to go back to a five day week just to keep up with my spending!"

Which shocked me. Once I had that thought, I decided to confront the powers that be and told them that I would have to go back to a sensible and somewhat normal work week once February kicks in. I'm sure I'll be doing a 5 day work week again this month though I suspect things will be back to normal come March.

I just hope that the extra pay from January, the extra from February and any overtime/time off in lieu I get is all worth it in the end. We'll soon see (I hope).

Have you ever had problems falling away from the straight and narrow with your finances and had to force yourself to get back on the right tracks?

Labels: earning, eating, working, spending

Inserted: 2009-02-09 22:30 (1 year, 5 months ago)

How is your Work/Life Balance?

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Recently I and a few of my work colleagues have been having an interesting time of it. Our project is pretty busy at the moment and it does make you think of the work/life balance.

As you all know, I have been trying to do a four day week recently but haven't been having any luck. I was four days for September and October but back to five days for November and December at the request of my employer. Again when I wanted to be back to four days in January, I was asked if I could do five.

Of course, I said '\i{yes}' because it's hard to refuse when your colleagues are also your friends.

The Problem

But since early January the project has been even busier and there is currently no let up in the amount of work we have to do. For the first 21 days of January, I was in work for at least a few hours (if not usually a full or even longer day) for 17 of them. If I were on a five day week I'd have normally done 13 days and on a four day week I really should have done just 10 days.

I also just cut short a holiday I had pre-planned from five days to just three.

And this is my problem. When someone asks me if I can do something, I invariably say yes. It's silly, I know and it's completely my fault but as I said earlier, I guess I find it hard to say no, especially to people I like.

Work/Life Balance

Unfortunately this does nothing for my work/life balance. My original four day work week dream is not only not happening but pretty much completely shattered. Again, as in November and December I have noticed that I have less time to do the things I enjoy. I have:

• hardly been on my bike in January at all (maybe three times)
• not really cooked a good meal at home
• not kept up with simplifying my life
• hardly spoken to my family in the UK
• missed a neice's birthday for which I will be eternally sorry

I even managed to somehow lose a DVD which I had sold on an internet auction site. I have no idea where it is and I shall be reimbursing the purchasers' price and postage. Not only have I lost out on a few extra dollars, I'm sure I won't get a good rating from the other trader.

So as you can see, my life has both gone out of whack and been pretty much non-existant. I have still seen a few friends here and there but not as many as I would usually. I usually go for coffee with a particular set of friends at least one weekend in each month and since the New Year, I have had to delay it every single weekend and now, there's not even a full weekend left to do it in (this Saturday will also be taken up working).

Extra Work and Who It Affects

We sometimes say to ourselves that "it'll be okay", "it'll calm down soon" or "we'll be able to relax afterwards" but none of these statements are ever true. Firstly, it's not okay when the extra work time starts affecting your family. Secondly it never calms down since commercial projects are incessantly going forward always with something to do. And finally, you don't get time to relax since once the project is done, all the things that need to be fixed up come back and haunt you for weeks if not months afterwards.

Out of those points though, the first is the most interesting in this conversation. Many times we buffer those around us from the realities of having to work overtime. We manage to shield our loved ones from the harsher realities such as nightmares (about work), arguments within work or even just plain old tiredness (whether physical or mental).

But sometimes our buffers become thin or cracks start to show. When working 14 consecutive days, it's hard to shield it anymore from those around us. We start complaining about the smallest things, we're grumpy and we're tired.

And as soon as you start to show it, your family sees it too.

Suddenly your homelife isn't as good as it was, your relationships don't sit as well and your family and friends start complaining that they never see you anymore. I know this because some friends of mine have been complaining for almost two weeks now. My response however is "There's nothing I can do".

Saying What we Don't Believe

Of course, there is something we can do about it and that is to push back on unrealistic work schedules. Having to work extra days, overtime and lunchtimes because of something that is out of your control is pretty demoralising. I have been on projects in the past which had crazy schedules but this particular one is fast becoming one of the hardest I've ever had to work on. Let me also qualify that by saying that on one of my previous projects I had to support a scientific space telescope for the European Space Agency for months beforehand, months after and 12 hours per day for well over a week around launch. So I know about high profile and expensive projects.

Today then, I decided that I shall give my all until project launch which will take us to around the end of January. After that however, I expect I'll not only be back on the four day work weeks but also back to normal hours too. It'll still be busy after launch I know but realities are kicking in now and I know that working these long hours is not good for either myself or those around me.

Instead of believing then that "there is nothing I can do", I shall be instead believing that my dream of a four day work week will soon become reality again - and this time, actually make it happen. Any future projects will just have to schedule me for four instead of five days per week.

Why?

Because I want the 'life' part of my 'work/life' balance back!

How do you put a control on the work part of your work/life balance?

Labels: planning, living, working

Inserted: 2009-01-26 01:11 (1 year, 6 months ago)

Are you a spender or a Saver? Can you Change?

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Jonathan at Master your Card wrote a guest entry over at Four Pillars. It was titled How to Change Your Financial Personality. I found it an intriguing article and got me thinking.

Here's part of the comment I left over there:

I used to be a spender (with a few savings) but now I’m a saver (with a few spendings). I think you’re right, we do flit and flirt between them but I now know I’m on the right track and probably won’t ever become a 'spender' again.

As I've mentioned before, since September last year many things about my life has changed and pretty much all of those have been for the better. I really don't spend as much as I used to which has afforded me the freedom to work a four day week and spend more time doing the things I enjoy.

My Changes

Therefore change for me was actually surprisingly easy. Of course, my change was enforced since I wouldn't have been able to sustain my previous spender lifestyle and be able to only work four days.

I bumped into an ex-boss the other day and we got chatting how things were. I told him that I was working a four day week and he immediately asked: "And you can afford that?"

I replied: "Well, you make yourself afford it." I'm not sure whether he actually liked the answer since I'm sure there are many people who would say that they couldn't but the truth of the matter is, many people can, if they only curb their lifestyle slightly.

I'm not going to make this a long blog entry since Johnathan wrote a great article. Also because there are a few other things I want to touch on before I go. However, one thing that stuck in my head about all this is whether each of us has the ability to change.

What do you think? Can you change? Let me know whether you have, you can or you will.

Changes in the 'Andy @ Retire at 40' World

As you can see, I have a brand new blog with my own domain now. It is all very exciting and I even managed to migrate all my old entries and comments over to the new one.

I know this is a lot to ask but if you have a link to Retire at 40 in your blogroll, can you please update the link so that any of your readers coming here won't have to go through BlogSpot to be redirected. Many, many thanks to each of you, I owe you one big time.

Hopefully, you good people who have already subscribed to the blog will automatically come here from now on since my feed now points to the right place. You're also in luck since there are quite a few interesting features planned for this site over the next few months so if you're not already subscribed, do so now so you don't miss out (that big orange RSS icon in the corner is what you're after).

By the way, thank you to everyone who has subscribed to 'Retire at 40' recently. I thought getting to 100 subscribers by month 3 was pretty exciting but I seem to have gained about another 50 in the past month (pending what happens with the blog move). Welcome to all of you.

Also, be sure to contact me to say hi, talk about PF, point me to an article, ask me a question or just to chat about anything at all. It's great hearing from you guys.

Finally, I hope you all had a great Christmas and New Year and keep enjoying the blog now that I am back.

Labels: planning, saving, spending

Inserted: 2009-01-07 23:18 (1 year, 6 months ago)