We are home! Slow travel lessons

FullSizeRender

 

Hello everyone we are back and alive! After a month of being in Italy, Switzerland, Paris and Singapore we are back into reality.

It was such an experience and everyone was definitely fabulous. We didn’t miss a bus or train or subway thanks to my detail-oriented husband, and we didn’t lose anyone.

So as for the slow travel/minimal suitcases – I have to say that I am hooked. Taking cabin luggage only meant that:

  • We did not over pack. I packed:
    • Three pairs of pants
    • Two pairs of shoes
    • Three t-shirts
    • A coat
    • Two jumpers
    • Underwear and light pjs
    • Minimal makeup – eyeliner, mascara, bb cream, two lipsticks. We took a risk that in most places we would have access to a hair dryer and otherwise we would tolerate holiday hair.

* Reality test: we are wearing the same clothes in most photos. We didn’t mind. We also took a small portable washing line and hand washed underwear when we could not find a local laundromat.

It also meant that we did not buy a heap of things that we would not really need at home. You know that feeling – I must be this leather jacket/piece of jewellery/touristy ornament because I am never going to be back – is such a holiday spending trap. My husband brought a small foldup light bag that we put extra purchases in, but it was across the seven of us, so really we couldn’t buy much. The photos and memories have been the things that we have come back to the most, since being at home, not the things that we bought.

  • We had accommodation in apartments where we could cook our own food for breakfast and sometimes lunch/dinner. We could buy and store snacks and fill up our water bottles.
  • We did not try to do everything. We visited a major attraction each day (Roman ruins, Eiffel Tower etc) but also had plenty of down time in cafes or in apartments reading and watching the world go buy. It was such an exercise in people watching.
  • Two other slow travel tips – for the foodies, a food tour in each new city is a must. You get to learn about the local places to pick up the best cheese, baguettes, charcuterie and wine. Then for the rest of the stay, those places become your favourite local haunts and you avoid hit-and-miss food experiences.
  • Secondly – we had eight busy days in Rome and Florence and headed to Lake Como. Nothing to do there but relax, look at the lake, go for a boat trip, drink cocktails and read books. It was such a great “down time” part of the trip in an absolutely stunning location (see view from our hotel – you get what I am saying).

FullSizeRender

It would be remiss of me to say that yes, we were fleeced on this trip. Our accommodation was sub-standard, over-priced and next time I would not use a travel agent to make the accommodation bookings. I was nervous taking seven people over and just wanted the certainty of a travel agent booking.

Next time, I will have the confidence to do it myself, and save quite a bit of money. I will still look for apartments in the hearts of the cities we visit, but will do a lot more research on Trip Advisor and make the bookings myself.

We also have a funny Trevi fountain story – we came up from under the subway, saw a small, understated fountain and thought – hey there is a self-stick seller lurking around – this must be it! Kids crammed into a photo and threw coins over their shoulder, made a wish, and we went off on our merry way.

IMG_4436

Until we found this:

 IMG_4449

We just laughed so hard I thought I was going to wet myself. Ohhh the joys of being one of those stupid, uncultured travellers that I’m always complaining about at home….

Now that we are back, my husband and I are in the process of making some exciting lifestyle choices about work, our family and projects that we want to complete here around our home. I’ll write more about that next time. Hope you are all well and taking steps towards your slower paced life.

Advertisements

Transitioning to zero waste part 3 – in the workplace

IMG_4031

The key to reducing waste and consumption is to …well.. reduce waste and consumption. And generally that sounds like it might be about a whole heap of planning and organising –  a bit of an onerous task.  The reality is that it requires both organisation and time, but makes me feel generally more on top of things for the week and is totally worth it.

I’m really enjoying The Simple Home by Rhonda Hetzel and you know I’ve already skipped ahead and read until June, but it’s great to have these month by month books to read to remind you of the schedules and systems to set up during the course of a year, rather than meeting the world of chaos with your own brand of it, through a lack of organisation.

In The Simple Home, Rhonda reminds me to have a look at my schedule on an annual, monthly or weekly basis and see if my auto-pilot routines are working for me and my family.  In fact, with every new activity or event in your family, taking a look at your regular routines is a fabulous way of ensuring that your go-to routines are working.

Transitioning to low waste is a very good reason to take a look at our routines.  Like how what I buy for the kids for their lunches, how it needs to be stored and how they will transport them to school.

Same applies to my lunch.

So we all now have colour coordinated lunch boxes that we take each day. One colour for each child (sandwich, fruit and snack boxes) so I can tell who is leaving their containers at school…. That’s how I solved the plastic container mystery that has plagued me for a decade…..

These containers are fine for now and BPA free and when I can afford it, I’ll replace these with stainless steel, compartmentalised lunch boxes.  In the meantime, my lunchtime routines for all of us are to:

  • Do a weekend cook up of our lunch mains.  This could involve baking bread and making a whole heap of sandwiches, to bacon and egg cups, pizza scrolls or today – using up some leftovers, I made Asian steamed pork and egg ramekins that I can now take for the three days I am working this week. Last night’s leftovers also make awesome lunches for the next day and I pack them straight after dinner.
  • I take my own utensils to work.  For two reasons – there are never any forks in the work kitchen drawer ever!  I could do a PhD on this – every workplace I have ever been to always has heaps of knives and spoons, but the forks seem to be the first to disappear – I wouldn’t be surprised if a small sample of 100 working households had a hodgepodge of mismatching forks in the utensil drawer……Secondly – I can wash it and reuse it the next day.
  • I take a napkin, so as not to use the disposable paper towels.
  • I take a piece of fruit and some nuts and these are contained in my neoprene lunch container which is where I put all of my empty containers home for a wash.
  • I have a stainless steel canteen 1 litre drink bottle which I refill with water – keeps it yummy and cool. The kids too have water bottles and they know my deal if we are out and about shopping or at a function – I won’t be buying them a soft drink or bottled water (grrrr) – they need to carry their drink bottles with them too.
  • Finally, I take a keepcup for my coffee in the mornings and this has been such an easy thing to incorporate into my work low waste routine because I leave it in the workplace and just wash it out each day.

For the kids, one of my teenager daughters loves to bake, so she bakes a little sweet biscuit or cake each weekend for the lunches (the upsides of having kids who like to be independent).

In terms of organisation – it does mean that I use a little bit of time each weekend to prepare, but then each morning it’s a quick grab and go kind of affair to get ready for work or school in the morning with no kids moaning about there being nothing to eat for lunch.

The areas that I am looking to reduce waste are my husband’s sandwiches, which he makes each weekend and freezes, but then pops into snaplock bags – I have to find him a better low waste alternative.

The last low waste thing I think about in the workplace is printing reading materials. I have just purchased a laptop that doubles as a tablet (my old lap top was on its last legs – particularly after I dropped it on the slate floor……will need to think of a low waste disposal for it..) so I am trying to bring my laptop to work to reduce the need to print out material for meetings.  As a result I have the cleanest desk I have ever had in my working life… but there is still room for improvement.

Now you may be wondering why the picture accompanying this post is one of six small cabin-sized suitcases…….WELL…..We are taking the whole family to Europe for the next month!  Eeekk! We are very excited.  And we are only taking cabin luggage, to simplify our experience. I’ll let you know on our return how that little experiment goes.  One of the upsides of having a simple life and not consuming so much is that we have been able to save for an amazing four-week trip to Italy, Switzerland and France. I’m beside myself, so are the kids and it is just so wonderful to be able to offer the children an amazing, once in a lifetime experience, rather than – say – a new family car. The old one will do just fine for a while longer and in the meantime, I’ll have a glass of Italian wine in Florence for you all…Ciao.

 

Transition to zero waste part 2

IMG_3141

Today in the Low waste series I wanted to talk about being low waste in the work place.

For a typical worker, this usually comes down to three things:

What you wear to work

What you eat at work

How you manage your work flow

For today’s post I will focus on what to wear. Like many of us I have struggled with a wardrobe full of clothes and nothing to wear. Prior to adopting a simple lifestyle I’d hazard a guess that nearly 80% of my disposable budget went into clothing, shoes and handbags. My habit was shopping. I shopped if I was sad, bored or needed a pick me up. I shopped to celebrate and to spend time with friends. My kids knew that on the weekends they were with me, we shopped for fun. We joked about how many bags we bought home. Looking back I’m pretty ashamed. I’m also ashamed at the opportunity cost of buying all those clothes the time and the wasted money. Money that could have been devoted to financial freedom. Anyways, onwards and upwards from here

So my approach to my work wardrobe is very different these days. Now I look at clothes as a means to an end. I need to look professional at work, but really every dollar I spend on having multiple wardrobe options is another two dollars that I have to work, and it stands between me and not having to work for an income at all!!

If that’s not motivation, I don’t know what is.

So I know approach my work wardrobe using Courtney Carver’s Project 333. I raise eyebrows at work when I mention it, usually followed by a comment that people haven’t realised that I have worn the same thing twice.

The approach is simple. Thirty three items for three months. It involves sitting down and being really deliberate about your wardrobe for a few days. It starts with:

What are the basics that I need in my work wardrobe? For me its ten dresses, two suits that have skirts and shirts. To keep things matching, I usually chose complementary colour schemes. This summer it’s been black, navy and grey.

Then I need a couple of layer pieces like some cardigans and perhaps a scarf or two.

I then turn to mind to what is going to delight me this season – thinking about your fashion interests that season what are a few nice pieces to update my wardrobe and make me feel contemporary

Finally a couple of statement jewellery pieces and a great bag

I have to admit that I am not an op-shopper, but to keep my waste low, I limit the clothes that I buy, and then donate clothes once I have finished with them so that other people can enjoy these pieces that I have enjoyed.

Do I get sick of the same old same old? Sure I do. But I also think about whether it’s worth me having multiple work looks, compared to a life of no work and independent income streams. That keeps me satisfied with wearing similar clothes over and over again for sure.

 

Book Review – A Year of Practiculture, Rohan Anderson

 

Book Review: A Year of Practiculture by Rohan Anderson

There is nothing like the passing of a close loved one to sharpen your focus on living a simple life.

My husband’s father passed two weeks ago and we are still coming to terms with it all.

At the same time, I’ve been doing some contract work and while the work is meaningful, it’s challenging and I don’t have the internal resources to do that job well and continue to live simply.

So – I’ll be finishing up work in six weeks before we head overseas and I’ll head into another stage of simple life re-evaluation. Life is too short. Loved ones need to be loved. Life is to be lived and not endured.

So as a little break from my low waste journey, I thought I’d review a book that makes me happy. A Year of Practiculture by Rohan Anderson is just that book. It’s so many things! It’s a:

  1. Biography of one man’s journey from office worker to self-sufficient simple lifer. It’s a great story of how you can prioritise your health and have a meaningful, nearly self-sufficient life.
  2. Funny book. It’s hilarious. If you have a teenage boy sense of humour like I do, you’ll be chuckling the whole way through this book.
  3. Recipe book. It’s got 100 no-fuss recipes from Rohan, his garden and things he hunts. AND THE RECIPES ARE DELICIOUS. Fancy some lamb-neck with summer broad beans anyone? It’s a wonderful seasonal recipe book that you can use as your garden produces fresh, bountiful crops.
  4. Practical how-to in the garden book, written especially for Australian conditions. I love the way he makes mistakes and records them so we can learn from them. Like investing too much of the garden bed in a crop that didn’t produce (corn) and the precise calculations you need to make when surviving off the land.

I have a major confession. I am only half way through the book. I made my kids buy it for me for Christmas, and I greedily started zooming through the pages, sneaking little moments to read a little bit more. But then I realised because this book gives me such pleasure, I will eek it out through the seasons. I read Spring; Summer has been read, recipes tried and now I will wait until Autumn to dive in again to my favourite book. In the meantime I might re-read Spring and Summer again. Thanks Rohan for producing amazing material and inspiring us to grow our own, and live a simple life.

Zero waste transition Part 1

 

I think Bea Johnson is absolutely inspirational and I watch her household video that I wrote about last year OVER and OVER and OVER AGAIN. I just want my house to look that that. Now.

But of course, Bea herself admits that it has been a massive journey to get to that amazing household destination.

Here’s how we have started.  And please note, I don’t receive any commissions on any product recommendations below.

Bea’s first point is to refuse anything that goes to landfill coming into the house. Sheesh. Big ask. No-one in my household, apart from my oldest teenage daughter was into it at all, so I decided to start with refusing things that were completely in my control.

My fortnightly grocery shopping.

I’m a big cook-from-scratch kind of girl, so I thought this part would be easy peasy. I found that it was not, and I had to spend some considerable time researching in my local area to find some answers.

Firstly – the only store that provides foods in bulk, that I know of, is our local Food Co-op. There’s a new store called Nude Food, but I am a loyal co-oper.  I like their values.

So to complete my Co-op shop I either take to the shop some of these:

Breathable fruit and veg bags

Images courtesy of www.Onya.com.au and www.thehospitalityshop.com.au

Or larger bags to carry produce in (bottom right hand corner).

I’ve been unable to source some calico bags for flour and sugar, but they are on my wish list. In the meantime, I take glass jars (top right hand corner) to purchase these products.

I purchased a whole heap of glass jars from cheapo shops, but have found that their closures aren’t as good as the good quality homewares shops, so as they break down, I am replacing them with good quality jars like the one shown.

The Food Co-op then weigh the size of the jar and deduct it from your purchase.

I find at the Co-op I can purchase my bread making flour in bulk, as well as most of my dry goods like other flours, sugar, cacoa, pulses and legumes, spices and definitely their delicious organic dark chocolate covered almonds……

Then I shop at either the local farmers market or our fresh food markets. Here again, I take my produce bags, shopping bags and glass Pyrex containers to get my meat in. I find the organic meat shops are more used to these type of random requests (like please don’t wrap my meat in plastic and paper – put in my glassware instead please). Buying meat this way is a heavy job – usually I do the fruit and veg shopping first, empty my trolley into the car and then go and do the meat shopping.

That way, I can put the meat straight into the freezer or the fridge without any plastic wrapping or Styrofoam bases.

When I purchase bread (my husband doesn’t like my sour dough, even though it gets rave reviews from others!!) I go to Bakers Delight, ask them to cut up my bread and put it straight into my shopping bag. I’ve had to educate a couple of people on why I am doing it (saving the planet one plastic bag at a time) but now they joke that I am the crazy bag lady and it’s a bit of a novelty for them.

Once I come home from the fresh food shop, I do spend half an hour to an hour cutting up vegetables and making sure they are stored in glass containers in the fridge. You can’t store your veggies in the Onya bags because the bags are breathable and they go all limp….

Finally, last but least I do any other product shopping at Aldi or Woolworths. I look for recyclable packaging. Eg do you know that Aldi pasta packaging is recyclable? I finally put all of my shopping away in their containers, empty out any packets or packaging that I have begrudgingly had to purchase.

As I go around, putting my shopping away, I leave out any plastic, unrecyclable packaging that is going straight to landfill and I put it on a list to explore next time. The next time I go shopping, I look for alternatives, one product at a time, to reduce the overwhelming feeling of trying to zero waste everything at once.

zero waste list

I’m still looking for a gummy bears solution… my husband eats four packets a week…..

Anyway I hope you and your loved ones had a great Christmas break and New Year. My posting schedule will be fortnightly again this year (although I want to sneak in a review of this most beautiful book that I have been relishing over summer next week….). I look forward to hearing from you if you have any zero waste challenges or tips for me.

Zero waste – a slow journey to reducing our contribution to landfill

IMG_3258For some time I have been admiring this minimalist home – it’s sleek, completely uncluttered and uncomplicated. It just looks relaxing. Relaxed people must live in it. And of course it has become my dream to live in such a house. Until I tried it. Let me tell you about our zero waste journey.

Bea Johnson is an environment activist, first tackling her own domestic waste, and then inspiring domestic waste reduction around the world. It started with her own journey, then a blog and ultimately a book, which I purchased a few months ago.

The key principles are this:

  • Refuse what you do not need
  • Reduce what you do need
  • Reuse what you do use
  • Recycle what you cannot reuse
  • Rot what you do use

The Johnson family produce a small jar of rubbish that goes to landfill every year. It’s astonishing, isn’t it. A family of four living in the US. THEY DON’T HAVE A BIN. Digest that for a bit.

The crazy thing is that I thought we were doing awfully well as our family of seven to have two recycling bins and a small bin that goes to landfill. Every week. Every week, our family produces such a considerable amount of waste that goes to landfill and masses of recycling.

And I thought we were doing so well, because our recycling bins were double the size of our landfill bin, until I saw this other YouTube clip produced by a really fun and smart environmental scientist that tells me how much oil and carbon that my recycling produces. Sigh. Recycling has become good, but not quite good enough.

So, about eight weeks ago, I embarked on getting our house to a zero waste stage. What I learned I this journey, is that it is actually incredibly admirable to aspire to a zero waste lifestyle….. and the journey to get there can be quite stressful. Over the next few posts I will write about our experience, and how (spoiler alert) we have opted to strive for a low waste household, rather than a zero waste one. I’m quite happy with this realistic compromise.

One thing I found about Bea’s incredible bible on how to get to a Zero Waste home, is that it skips over the getting to zero part quite quickly. I thought I would share with you how we got to our alternative proposition.

And because it is that time of the year, I hope you all have a wonderful break and spend quality, slow time with your loved ones. Take care and see you in 2016.

Part 5: Retirement planning (or for younger people – financial independence planning!)

IMG_1572

Last financial post for a little while. Well – just for a few weeks…

This week I’m thinking about retirement. I’m really thinking about it because I am having a little mid-life retirement right now, and I’m on the other side of forty.

A couple of things have happened to spur me into action to think about retirement planning at the wee age of 42.

  1. When I was on the treadmill of full time work, I had no idea of how much money I was aiming for, to save for our retirement. If you find yourself in a job that doesn’t thrill you each day, this question about how much money you need in retirement comes into sharper focus (when can you get the hell out of your work place).
  2. At 42, I also had more of an idea of the type of lifestyle I want to live in the second half of my life. And for us, the second half of our lives is less about career and more about fulfilment. It’s less about keeping up with the soccer mums and more about spending time with my family. Being clear on the type of life we want to live means that I can be more realistic about what living expenses I will need

I will ‘fess up. I spreadsheeted our life in excel right out to my husband’s death. I thought about a comfortable retirement where we owned our own house, travelled once a year internationally and pottered about Australia every now and then. I made provisions for:

  • A contribution to either the children’s education or a deposit on a home, given how difficult that is. To do that, I have planned to lock away $20k per child in a growth account until they require it
  • An upgrade to our existing house – it needs a new kitchen, bathroom and ensuite need an update, and possibly the exterior verandah and steps. It’s a 25 year old house and things are starting to peel/chip/rust/corrode/rot – you get the picture
  • $200k to down size and upgrade our house as our birds leave the nest – not sure when this will be, to be honest. But when it happens, I’m keen to live in a house that is consistent with our values like minimalism, leaving a minimal environment footprint and self-sufficiency.
  • We will need to get cars at some point in the future. I’ve budgeted $50k for that, because I know that we will get something second hand or an electric car.

So all up, we need an extra $500k on top of what we need to live on, to meet our anticipated living expenses between now and retirement.

Following these calculations, we went to see a trusted financial planner (word of mouth).

We looked intently at our superannuation pensions and realised that my husband (who I now love a little bit more) has a great pension that he can start to access in five years that will meet our living expenses.

We already have savings. In summary, this means is that we need to save another $440k to meet our anticipated capital or lump sum expenses, maintain our private health insurance and combined with the pensions we will have a standard of living that is equivalent to $100k per annum in five years’ time – and for now, it’s tax free income.

So let’s work backwards. If my husband and I continue to work full time/part time over the next five years, we should be able to save approximately $50-$70k per annum. That will mean that by my husband’s pension age, we will have between $250k – $350k in the bank towards those capital outlays, sans any interest that we have earned.

Come early retirement time, we will need to earn between us around $50k extra per year for 3-5 years to make sure our capital lump sums are taken care of. That’s a very part time job for me at the ripe old age of 48. My husband will be 55.

Prior to completing these calculations, I felt like I was on a working full time treadmill until the ripe old age of 65 at least. The purpose of completing these calculations was to see whether or not that treadmill for life was actually necessary – and guess what – it’s not.

By gritting your teeth through the boring bit of looking at the figures, and getting some advice, you can predict to the greatest extent that’s possible in this uncertain world – what the second half of your life can look like. A part time job for both of us enables us to pursue our passions (volunteering, travel, music, doing up old cars, growing veggies) and taking the slow road in life. It was this calculation that enabled me to take this recent career break and reassess the way we want to live.

Here is the calculation in summary:

  • Current expenses, and then add an inflationary multiplier each year (I chose 3%). Extrapolate out to the time that these expenses are relevant and then reassess. For example, I calculated that we will have kids requiring full care for the next eight years and after that, they will be making some contribution to their own living expenses, therefore our overall expenses will be less. Extrapolate that new figure out until the average survival rates for men and women in your country.
  • Think about the big lump sums that are coming your way in the future. Home upgrade? Medical procedures? Big travel plans? Replacing cars? Home renovations? Contribution to children education expenses? Still paying off the mortgage? When will that be complete? Total this amount.
  • Now add in current income with a wage increase (I used 2% to be conservative)

If you set up the spreadsheet horizontally, and add in when lump sums will occur, you can actually forecast when your cash will be called upon, and the cumulative cash flow position of your family.

Add in when you will start receiving superannuation pensions and there you have the best prediction of your family cash flow. Here’s a blank version of how I set up this sexy spreadsheet:

retirement calcs post tax
Kirsti 43 44 45 46
Husband 50 51 52 53
CPI 0.03
2016 2017 2018 2019
Expense
Capital exp
Extra travel
Kids savings
Renovations
Replacement cars
Total capital
Income required
Salaries
Husband   current income
Kirsti’s current income
Income total
Pensions
Husband pension
Lump sums
Kirsti’s pension
Total pensions
Surplus/shortfall
Carry forward (savings)
Return on savings

I’ve extrapolated this out until my husband’s death at 87…. (cheeky!)

I cannot stress the importance of getting good financial advice. Without ours, we would not have realised how good my husband’s superannuation fund was and how early it was going to enable us to retire.

Now to be clear, retirement for me isn’t about heading off to the golf course and playing bowls at the age of 48 (although if you love golf and bowls, go for it). Retirement for me is retiring from the ball and chain of full time work that I am resentful of. Retirement for me is financial freedom, part time work and the time, space and money to focus on the things that truly bring me joy and fun.

Perhaps this position is best summed up as financial independence and the freedom to live your life as you choose.

Part 4 – net worth tracking (stop yawning)

20150926_175802

As part of my five part series on family financial management, today’s post is about net worth tracking.

One of the biggest questions that I have turned my mind to over the past eighteen months or so is our family’s net worth – that is – our family balance sheet. It’s a bit like putting a business lens over your family finances and seeing whether the family company is actually growing its asset base.

So net worth tracking – what is it, and how do you do it?

It sounds so fancy, but simply put, your family net worth is calculated by deducting your liabilities from your assets, and bingo – that is your family net worth.

So, why should I go to the trouble of working out what our net worth value is? Five simple reasons:

  1. At any given point in time, you can see whether you are growing your family assets and achieving your financial goals. You can also critically examine composition of your assets, for example and see whether you have any over exposure in terms of risk that you may want to readjust.
  2. You can also see whether you are financially going backwards. For example if property values are falling and you are only making interest only payments on your mortgage (the principal is not reducing) you are going backwards, financially. If you want to change the situation, by tracking your net worth, you will be alerted to this situation and will be able to re-jig your finances accordingly.
  3. Net worth calculations will keep you honest and real about your financial situation if you track it over time. It’s easy to redraw cash on the mortgage to pay for an overseas holiday or put a pool in (we have done this one!) and continue to dip into your redraw facility like it is free cash without any consideration of the long term financial impacts for you and your family. Watching your net worth stagnant over time as a result is an eye opener. We did this for about three years. A combination of seeing our static family balance sheet and a strong urge to spend more quality time with family and less time at work propelled us into action (the Year of Austerity) and beyond.
  4. Net worth calculations are super important in retirement planning. I’ve found that being on this side of 40 has really sharpened my interest in knowing whether I will have enough money to seriously retire and focus on projects that I am actually interested in.
  5. It’s important for estate planning. Perhaps for my generation, intergenerational wealth has not seemed as necessary (I’m a self-starter and have made my own way in this world financially) but for our children, market predictions on employment prospects and economic growth generally are looking a bit bleak. I’d like to think that I will have some $$ to leave all of our five kids as a back-up fund for them and their future families in times of hardship.

For the purposes of being a useful calculation, you want to not include the short term, small assets that can seriously fluctuate at any given point in time. For example, our “trading” account, where our salaries are paid into and our credit card is paid out of, can wildly fluctuate between $12k and $50 depending on what time of the month it is, and whether we have paid our credit card recently. Because this could overstate or understate our net worth position at any time, I leave it out of our calculations.

Similarly, on the liabilities side, we pay off our credit card in full every month and it could have either $2k on it, or $9k, so again, I leave it out of our net worth calculation.

If, on the other hand, the credit card was not being paid off each and every month, and had become core debt – a long standing liability – then I would definitely deduct it off the family asset balance, because by not including it, I would not be viewing the true family financial position.

So, again, in the interests of being open and transparent, for our family, I’ll share our net worth position as at today.

Six monthly I usually do a little bit of my own real estate research to estimate the value of our family home and I use our six monthly superannuation balances to calculate super. I have to say, since the Year of Austerity and paying off our mortgage, we look financially under control and I like that.

Our net worth looks something like this:

Assets

Family home                                                      $700k

Savings account                                                $ 61K

Superannuation                                               $556k

Shares                                                                  $   5k

Total                                                                      $1.322m

Minus Liabilities

Core credit card debt                                     $0

Mortgage                                                            $0

Net worth                                                           $1.322m

 

Now I realise for some this is as boring as bat shit. But for me, it completely motivated me to think about running our family like a business so I could absolutely understand the goal posts of what we needed to save to retire (see next fortnight’s post); what we needed to budget for in the short term and therefore how much I needed to work and most importantly HOW MUCH TIME I COULD ACTUALLY SPEND WITH MY BEAUTIFUL FAMILY and not feel guilty about whether I had planned financially for the future.

I was easily prepared to be very bored to work that all out!

Give it a go, and tell me what you think. For some it will be facing the music but the music won’t go away by ignoring it.  For others, it might be quite surprising and liberating….

Quick empties update

20151025_163508_resized

You might remember that I blogged here about my obscene ownership of way too many cosmetics…..

I realised that I was making great progress simplifying many areas of my life, but there were still areas of consumption that I was virtually blind to.  I really love this process of simplifying, because the new “normal” is challenged after the passage of time, a bit of adaptation and some furthering thinking about consumption.  It’s a lovely, thoughtful process.

Anyways, I thought I would post an update on my progress. This drawer contains my empties.  As you can see, in six or so weeks a little bit of progress has been made, but man I’ve got a heap to get through.

I’ve realised that in order to get through THE LOT I am going to have to think of some creative ways to use all of my cosmetics and beauty products. One idea I thought of is to use excess moisturiser as conditioner, when my conditioner runs out.

One really interesting challenge is that I have that I have plenty of half used lipsticks…Any ideas? Facial toner?

Part 3 – Where to from here now that our income has been halved

FB_IMG_1443248422364_resized

Where has the time gone! The first three weeks of not working have been really busy – in a productive way. I’ll write about that later.

But for now, I wanted to update you on the family budget now that our income has been halved and I am not working – part 3 of my financial series.

As I mentioned, we have been to see a financial advisor on our superannuation and retirement needs, particularly now that David is nearly 50 and I am nearly 43. It’s important to understand the long game, and to understand how hard we have to work (or not work!) to ensure that we have both a reasonable standard of living now and in our retirement.

Main changes: I have reduced our food budget, and my mobile plan. There is not a lot of wriggle room in this budget – by the time we also get our allowances (which have also reduced) we have about $1000 spare per month. I intend to build this as a bit of a cash flow to help us on the heavier months when we have more expenses.

So our one income budget looks like this:

Expenses   yearly monthly fortnightly
26 2
Car rego $ 2,200.00 $       84.62
Car insurance $ 1,100.00 $       42.31
House ins $ 1,100.00 $       42.31
car services $ 1,000.00 $       38.46
petrol $     120.00
Sundry $     300.00
fernwood $       24.00
internode $   75.00 $       37.50
mobile $   35.00 $       17.50
pocket money $       25.00
cleaning $       65.00
food $     400.00
electricity $ 1,200.00 $       46.15
gas $ 1,782.00 $       68.54
water $ 1,000.00 $       38.46
rates $ 1,300.00 $       50.00
primary school fees $ 100.00 $       50.00
piano $     600.00 $       23.08
netball $     350.00 $       26.00
health insurance $ 1,600.00 $       61.54
girls clothing $ 1,500.00 $       57.69
movies $     100.00
red cross $   25.00 $       12.50
guitar $     600.00 $       23.08
dancing $     400.00 $       15.38
oxfam $   25.00 $       12.50
Boys school fees $ 4,624.00 $     177.85
Girls school fees $ 550.00 $     275.00
Girls mobile $   30.00 $       15.00
foxtel $   50.00 $       25.00
gifts $ 3,000.00 $     115.38
boys expenses $ 200.00 $     100.00
total       $ 2,489.85

The main thing that I will focus on to reduce our food bill is to really cook from scratch. I like the health benefits of this as well, as I am really keen on reducing the amount of processed food that we buy. Things that I already cook from scratch include:

  • Bread – sour dough is may favourite
  • Yoghurt – greek and vanilla
  • Mozzarella
  • Pancetta
  • Biscuits and cakes for the children
  • Hommus (Yotam Ottolenghi’s  recipe is so yummy)
  • Preserves  – I preserve food when it is particularly season and tasty – like mangoes, apricots, peaches, tomatoes

The second way I will reduce the food budget is by buying in bulk from our local Food Co-operative. The food is organic and not packaged, which I really subscribe to. I take in my own jars and produce bags so there is no plastic packaging.

Finally, I will grow up to 50% of our fresh produce. My husband and I have just spent the weekend building three new vegetable beds. This weekend’s outlay has been around $1000 – I have spent all up around $2500 on the veggies beds – but they will pay themselves off in no time.

My job is to keep an eye on the family budget and to make sure that we are on track. Bottom line is if I don’t keep track of it, I am back to work so of course, keeping expenditure within budget is my number 1 priority! I am loving not working and providing really healthy produce for my family.