Will you have enough money when you want to retire?

A scary question isn’t it.  I meet quite a number of people who don’t want to even think about retiring let alone thinking if they will have enough money when they finally do want to retire.

The answer to the question was the subject of a presentation at a network breakfast I attended.  A certified financial planner used a case study to illustrate the point.

Retirement planning (1024x637)We probably all know this.  We are living longer.  But maybe we hadn’t quite connected the dots in terms of having enough money to retire on.  It wasn’t that long ago that the life expectancy after retirement at age 65 was only 9 years.  Now it can easily be 20 to 30 years, so the number of people potentially outliving their capital is going to be quite significant.

The website My Longevity has gathered data to help you work out your life expectancy based on your lifestyle rather than actuarial data.  It is worth spending a few minutes to complete the questionnaire to see what your life expectancy could possibly be.  I did mine and unless I get hit by a bus, I potentially will need my capital to last until I am 106!!  I certainly don’t have enough to last that long. Continue reading

I’ll be happy when…..

“l’ll be happy when I get the pay rise” or “I’ll be happy when I get a ………”  Just insert whatever the word is for you.  Why do so many of us wait to be happy.  What is wrong with being happy right now?

20140711_063455_LLSDo you know this song?

“If you’re happy and you know, it clap your hands.
If you’re happy and you know, it clap your hands
If you’re happy and you know it and you really want to show it,
If you’re happy and you know it can your hands.”

I think it is about  time we started clapping our hands, instead of looking outside of ourselves and waiting until we have more stuff to make us happy.

We need to stop, take a deep breath, look around and see where we are right now and take pride in our accomplishments to date.

I am not saying there is anything wrong in wanting more things, a nicer house, flash car, but our happiness shouldn’t be delayed until you have them.

So, go for a walk in the park, watch the sunrise.  Tell your partner or children that you love them, start looking inside yourself rather than externally for your happiness.

If you don’t feel happy right now, then every day when you wake up think of one thing you are grateful for, as the list grows, so will your happiness.

If you want to be a little crazy then sing the song and just start clapping.

We love feedback, so please feel free to leave us a comment or contact us.

Lynda Moore   http://www.mymoneyseeker.com

 

 

When it comes to money 1+1 doesn’t necessarily =2

Why?  Because of the emotions and meanings we attach to money.

 

Money, Colorful words hang on rope by wooden peg

Money is still a Taboo subject.  In 1913 Sigmund Freud wrote, “money questions will be treated by cultured people in the same manner as sexual matters, with the same inconsistency, prudishness and hypocrisy.”

I think his observation is still applicable today. Look at this NY Times article

Lynda Moore   http://www.mymoneyseeker.com

Think like a travel agent when setting your goals

Our bags are packed and we are all set to go.  After months of waiting we are on our way to Sydney to attend Brendon Burchard’s Experts Academy.

20140706_063817 (800x611)We knew where we wanted to go, the date we were leaving and how we were going to get there; so planning for this trip was really quite easy.

Other times when we travel, we are more fluid.  We have a departure date and a date we need to be home and what happens in the middle is totally flexible.  So we decide what to do on a day to day basis.

Goal setting is like that, sometimes you have a short sharp goal that you just need to get stuck in and achieve.  Maybe saving for that unexpected large dentist bill or setting up your emergency fund.

Your goal may go something like this “I want $1,000 in a savings account for emergencies in 90 days from today”.  That ticks all the boxes in terms of being a clear, measurable and attainable goal.

But if you are 25 and you have a goal to have enough money to retire on when you are 65, you will need a bit more flexibility in your planning, by turning your large goal into smaller measurable and attainable chunks.

So, when you are setting your goals.  Think like a travel agent

  1. Where are you now?
  1.  Where do you want to go?
  1. How are you going to get there?
  1. When do you want to arrive?

We love to hear from you, so please leave us a comment or to learn more about our programmes, feel free to  contact us. 

Lynda Moore    www.mymoneyseeker.com

Imagine earning $44 million dollars a year

What would you do with it?

We could ask Cristiano Roanaldo the World’s highest paid soccer player, he should know, that is what he reportedly earned last year.

ronaldoJudging by the photos of him (and his girlfriend) in the media they certainly have the lifestyle and the toys that go with that level of income but I can’t help wondering if he is following the first few commandments of money management which are:
1. Spend less than you earn.
2. Know where you money goes.
3. Pay yourself first.

You see it doesn’t matter if you earn $44 million or $44,000 you still need to follow the basic commandments as you never know what is around the corner.
The other commandment for those that suddenly acquire wealth or haven’t been used to a high level of income is,

Get good advice!!

Good advisers not only include accountants, lawyers and financial planners, but also money mentors.  Change is rarely about the numbers (the math) otherwise it would be simple, but emotions cloud money issues.  Money mentors can help you understand your money mindset so you can deal with the changes in your life.

Anyway, back to Ronaldo, he has an amazing sporting talent, let’s hope he has the right people around him to make sure he is investing wisely for the future, whilst enjoying the fruits of his labour at the same time.

Lynda Moore    ww.mymoneyseeker.com

Confirmation Bias and Decision Making

I love my new tyres!!  They were a real bargain, the brand has the best reliability and durability in the market.  That is my story, I am sticking to it and you can’t tell me anything different because I won’t believe you!!  Welcome to the world of the confirmation bias.

loyalty cardsSo what is the confirmation bias all about and why do we need to be aware of it?

In a nutshell the confirmation bias is the way we pick data to confirm our beliefs.  We look for information that confirms our views and ratifies our decisions.  This happens both consciously and unconsciously.

Not only do we look for information that confirms our beliefs.  We also actively discount and often don’t listen to information that is contrary to our belief about a product, person, an investment strategy and so on.

The confirmation bias is everywhere.  It just doesn’t impact on decisions about money, but also our impressions of people. Continue reading

Anchoring; how it impacts on our spending behaviour

At some time or other we have all been anchored.  This tends to happen more often when we are purchasing a product or service that we don’t know too much about.  Here’s how it works.

tyre croppedI was happily driving my car when it developed a bit of a shudder through the steering wheel.  I didn’t think it was a major so I took it to my local Tyre shop, thinking my wheels just needed balancing. (That is about the extent of my technical knowledge of tyres).  I left my car in the serviceman’s capable hands and headed off to my appointment.

Within 10 minutes my phone rang – never a good sign.  It was the tyre shop, the problem was somewhat more serious than balancing.  I needed a new tyre as this one was falling apart (apparently I was lucky I made it to the tyre shop without having a serious accident).  Not only did I need one new tyre, the others were looking quite worn so I really needed to replace all four.  Not what I wanted to hear, but safety comes first so I took a deep breath and asked for some prices.

This is what I was told. Continue reading