Three charts on: how part-time work is growing more slowly, but more men are doing it

Even though the shift towards part-time employment has actually been happening for many years, it now appears to be slowing, writes…

Jeff Borland, University of Melbourne

Even though part-time work is growing, this growth is slowing over time.

Employment figures for the early months of 2017 have shown stronger growth in full-time rather than part-time employment.

The pattern of slowing growth in part-time employment is a long-term phenomenon.

Growth in part-time work slowing JobSearch

From 1966 to 2016 the share of part-time employment rose from 10.1% to 31.9%.

This increase reflects factors such as the need by employers in some industries (such as retail trade) to adapt to longer opening hours, and entry to the labour market of workers (such as students) who prefer part-time work.

But looking at the change in the share of part-time employment by decade from 1966 to 2016, the smallest increases have occurred over the past 20 years.

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Part-time work more evenly spread between men and women

Fifty years ago, part-time employment was mainly concentrated among women – and this is still sometimes the image of part-time work today.

However with the overall growth in part-time employment, it has become more evenly spread between men and women. 

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In 1966 less than one in 20 male workers was employed part-time, whereas in 2016 almost one in five worked part-time.

For women, the share of part-time employment rose from 24.5% to 47.0% over the same period.

Growth in the share of part-time employment was most rapid for women between 1966 and 1976, and since then has continued at a slower pace.

For men the opposite pattern is evident.

There was little increase in the share of part-time employment until 1976, and a faster (although not accelerating) pace after that time.

One explanation for this is the rise in part-time work done by students, who are relatively evenly distributed by gender in the workforce.

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Concentration in certain industries

Growth in part-time employment has not happened uniformly across industries.

In some industries, such as mining and construction, there has been limited growth in part-time employment (about two percentage points).

Whereas in other industries, including retail trade and accommodation and food services, there has been substantial growth (over 17 percentage points).

The variation across industries, obviously implies that some industries have contributed more than others to the increase in the overall share of part-time employment. job employment australia

In particular, growth in part-time employment in retail trade, accommodation and food services and health care and social assistance, has accounted for about one-half of the increase in the overall share of part-time employment since 1986.

The concentration of part-time employment by industry reflects differences in how production happens in the Australian economy.

For example, in mining, where workers may need to move to remote locations, offering part-time work is unlikely to attract workers.

By contrast, in retail trade or in accommodation and food services, businesses need to be open outside regular working hours, which makes part-time workers an attractive option for these businesses.

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Part-time work is likely to continue to grow over the next 50 years, just as it has in the past 50 years, but just at a slower rate. 34405413_s-300x200

What has occurred in the past should be a good guide to how this will happen.

The ConversationPart-time employment will still be concentrated in industries such as accommodation and food services; and the share of men in part-time employment will also continue to increase.

But this slowing in part-time work shows we are certainly not heading for a labour market where we all work part-time.

Jeff Borland, Professor of Economics, University of Melbourne

This article was originally published on The Conversation. Read the original article.

A glimpse into Wealth Retreat – Part 1

Have you ever wondered what goes on at Wealth Retreat?
dream clock time business man life motivation happy dream

Well…I had the privilege of spending 5 days with some of Australia’s leading property experts and some serious property investors in the first week of June at Wealth Retreat.

In this series of 4 blogs I’m going to share some short videos I recorded with some of the speakers and attendees.

They’ll give you some insights into the minds of some of my mentors.

To kick things off let me reflect on some of my experiences in property investment.

Welcome to wealth Retreat…..

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In this video I interview Michael Yardney, Australia’s leading expert in wealth creation through property.

Michael has mentored and assisted more property investors to become successful than anyone else in Australia, including myself.

One thing I really wanted to know though is; “What would he do if he had to start all over again?”

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To Be a Successful Entrepreneur You Must Go All In and Never Quit

Becoming a successful entrepreneur is not easy. success

I spent five years studying 177 self-made millionaires Rich Habits Study – Background on Methodology and I have to say, they are among the most courageous, fearless individuals I have ever met.

They put everything on the line.

They took enormous risks in the pursuit of their dreams.

Success or failure often hinged on one or two things going right or wrong.

The outcome, succeeding or failing, was separated by a margin so slim that it was invisible to the human eye.

And some did fail. In fact, 27% of those self-made millionaires in my study failed at least once in pursuit of success.

I learned from my research that entrepreneurs pursuing a dream often feel like they are on the precipice of success or failure.

They see themselves sitting on a wall, with one side of the wall representing success and wealth and the other side representing failure and poverty.

A strong wind, blowing in either direction, can push them off the wall.

Winds of fortune can blow them one way and unfavorable winds can blow them the other way.

These winds are unexpected things that go right or go wrong. Success for an entrepreneur is very much dependent on the winds blowing in the right direction.

Whenever you embark on an entrepreneurial journey, you will come face to face with a very frightening reality – that part of your fate is in the hands of variables that are outside your control.

And those variables, those outside forces, can be aligned with you or against you.

What makes successful entrepreneurs so heroic is how they react when those variables are aligned against them and push them onto the wrong side of the wall.

Successful entrepreneurs somehow find the resilience to pick themselves up and climb back up onto the wall.

They persevere.

They survive. And that survival, in many cases, is day to day.

Entrepreneurs who refuse to surrender, are able to endure until the winds of fortune finally blow their way.

The story of the successful entrepreneur is really a story about putting everything on the line and of survival.

When you put everything on the line, you simply have no choice but to survive.

Most entrepreneurs, however, don’t put everything on the line.

They quit when the costs and the risks get too high.

They give into their fears of failure and poverty.

That is why there are so few self-made millionaires.

If you’re an entrepreneur, you will eventually come to a fork in the road.

One road sign says “Go All In” and the other says “Cut Your Losses”. expert leader

If you are already there, you have a choice to make.

Left or right?

Entrepreneurs who truly believe in their dream do not allow the fears of failure and poverty to dictate the road they choose.

For them, there is no choice.

Look, I’m not just a peeping Tom, peering through the window at the lives of these self-made millionaires and disbursing theoretical information.

I’m living this stuff.

I’ve adopted the Rich Habits and put it all on the line in my author start-up business.

I took financial risks that, in my weakest moments, scare the hell out of me.

I’ve been at this author business for nearly 7 years.

I’ve invested nearly $100,000 into this business.

In those 7 years, 99.8% of the time nothing’s gone my way.

I paid close to $35,000 on publicists and marketing companies that failed to deliver, forcing me to figure it out on my own.

Over these nearly 7 years I’ve spent at least 3 hours a day pitching the media, trying to get them to interview me so that I can get more people to find out who I am and read my books.

I’ve had some success, but not nearly as much as I want.

During all this time, I can count on one hand when things went my way:

Yahoo interview, Dave Ramsey radio interview, CBS TV interview and SUCCESS Magazine interview. success

That’s it – 4 pitches went my way out of 35,000 cumulative pitches that did not go my way.

That’s a success rate of .001%.

But those 4pitches that went my way helped this first time, self-published authorsell 40,000 books and secure a traditional publisher.

If you want to succeed as an entrepreneur you have to go all in and then stick with it.

One or two things can completely transform your life and help make your dream a reality.

For some self-made’s like Richard Branson, Mark Zuckerberg, the guys from Google and a few others, the winds of fortune blow sooner.

But they’re the exception to the rule.

For the average Joe, self-made millionaire, those winds take many years to arrive.

You must never quit on your dream.

Eventually good luck will find you.

But luck will never find you if you quit.

So never quit.

Persist.

Be courageous.inspiration success hard wrok

Believe in yourself and what you’re doing.

Go all in and never stop trying.

Eventually life will bend to your will.

It will go from adversary to ally.

And when it eventually does, you will find yourself on the right side of that wall – a successful, self-made millionaire.

Weekend reads – Must read articles from the last week

There are more interesting articles, commentaries and analyst reports on the Web every week than anyone could read in a month.

Each Saturday morning I like to share some of the ones I’ve read during the week.

The weekend will be over before you know it, so enjoy some weekend reading…and please forward to your friends by clicking the social link buttons.

Almost two-thirds of Australians see home ownership as something for the wealthy, survey finds

We’ve all seen the headlines regarding the property market – but how often have you also heard the phrase “that’s just the media”.

This begs the question – what do everyday Aussies really think when it comes to property?

An article on Domain.com.au has documented the results of a survey – and the results may be surprising.book story house property dream first home learn real estate

The great divide between home owners and property “have-nots” is widening fast, according to new research commissioned by the publicly listed mortgage broking firm Mortgage Choice.

More than 60 per cent of Australians believe only the wealthy can achieve the “Great Australian Dream” of home ownership, the data reveals.

Mortgage Choice and CoreData’s Evolving Great Australian Dream study found 63.2 per cent of Australians said “only people with a lot of money can hope to achieve the Australian Dream”. 

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Mortgage Choice chief executive John Flavell said the finding was unsurprising considering that property prices were growing faster than wages.

“According to the Australian Bureau of Statistics’ Wage Price Index, wages grew 12.6 per cent between March 2012 and March 2017,” he said.

Australian Bureau of Statistics data shows that the home ownership rate in Australia decreased to 67 per cent in 2011 from 68.9 percent in 2006.

The national home ownership rate averaged 69.2 percent from 1966 until 2011, reaching an all-time high of 71.4 per cent in 1966 and a record low of 67 per cent in 2011.

Victoria’s home ownership is now at a historic low, with just 66 per cent of households owner-occupied, compared to almost 74 per cent in 2001.You man carrying his wife upstairs in their new house

Victoria is placed behind South Australia and Western Australia, but is still ahead of NSW and Queensland, on the home ownership front.

Although it is becoming increasingly difficult for some buyers to get their foot on the property ladder, Mr Flavell said the research demonstrated that property ownership remained the Great Australian Dream.

“Regardless of how difficult property ownership becomes, people still want to own a home.

In fact, our research shows people rate ‘home ownership’ as more of a priority than career success, travel, or having a luxurious lifestyle,” he said.

Read the full article here

Job vacancies rise to a 5-year high

It seems that our unemployment rate is at an all time low.

This Blog by Pete Wargent shows the statistics behind the results.

There has been much criticism of the Reserve Bank’s apparently lackadaisical approach to monetary policy and the subdued economy in recent times – mainly from people like me, to be fair. RBA (1)

But the RBA must be feeling at least a little vindicated after a spate of improved news about the economy, particularly on the employment front.

The unemployment rate was reported at a 51-month low this month.

And so it continues today.

It was reported today that manufacturing employment has expanded by 40,000 over the past year, the strongest growth in a decade.

Internet Vancies

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And the jobs outlook has brightened lately too.

The Department of Employment’s job vacancies index was released today, with total seasonally adjusted vacancies rising to 172,403.

That’s the highest result monthly since nearly five years ago June 2012.

Since the nadir in September 2013, the index has bounced back by 24.5 per cent.

Read the full article here

The 12 Sydney suburbs where the median house price is $7 million

It may be one of the most stunning cities in the world – but with that comes a hefty price-tag.

This article from Finance.nine.com.au looks into Sydney’s 12 most prestigious suburbs that hold a median price of $7 million.

The real question is….who can afford to live here?

It’s the bubble within the bubble: a new report from property valuer Savills has identified the 12 Sydney suburbs where the median house price is a staggering $7 million.

Home to Sydney’s social and financial elite, all of the suburbs named in the index contain the same features of sweeping harbour views, private seaside docks and easy access to the CBD. darling-harbor sydney

Categorised as Sydney’s “luxury market”, the 12 suburbs include Darling Point, Vaucluse, Elizabeth Bay, Woollahra, Dover Heights, Rose Bay, Paddington, Potts Point, Bellevue Hill, Point Piper and Watsons Bay.

n these select suburbs, luxury homes have seen a comparably modest price growth of 8 percent a year – compared to the shockingly high annual rate of 18 percent found across the city.

According to Savills head of research Sophie Chick, buying inside the luxury bubble means you’re paying a cool $6.2 million more than anyone else.

“The median price of properties in the luxury index is over $7 million compared to $795,000 across the wider Sydney market. sydney

This price point is accessible to a much wider pool of buyers than the luxury market, particularly investors who have been active in Sydney,” Ms Chick told The Financial Review.

“Across the luxury market in the eastern suburbs the average price per square meter (internal and external) is $16,600.

For a property on the waterfront, that increases to $24,800, a 50 percent premium.”

While the majority of buyers come from professions you’d expect to live in the luxury enclave – such as bankers, doctors and lawyers – Savills Price Index also showed there was a resurgence in young professionals from tech backgrounds buying luxury housing.

Click here for the full article

How many coffees can buy you a house?

Unless you’ve been living under a rock you will no doubt be familiar with the debate that seems to have no end – ‘The cafe generation’ vs. ‘The critics’.

So if you’ve been feeling guilty or uneasy about getting your coffee fix from your favorite local cafe, with the illusion that you could otherwise be buying a house, here’s a little reality check.

Results in an article on Beanhunter.com look into the median price of each state – and just how many coffees it would take to reach it.

There are certain things Australians seem to love arguing about, and housing is one of them. interesting articles

Prices in the major capital cities aren’t slowing down, and more young people are simply giving up hope at the idea of ever owning a solid piece of land or property.

That fear was exacerbated to the extreme in the past several weeks, when property investor Tim Gurner said that Generation Y should stop going out for “smashed avocado and $4 coffees” in order to afford a house.

Hold up…coffee?

That’s where we come in.

Now, we know that property is extraordinarily expensive, but is saving your coffee money every day really going to help?

We don’t need to argue about this – we actually have the data.

So we’ve broken down each state and figured out just how many coffees you’ll need to save before you can actually get your foot in the property market.

Heads up: it won’t happen very quickly.  coffee

To conduct this little experiment, we’ve taken Tim Gurner at his word.

We’ve assumed that a coffee costs $4 around the country, and we’re not adjusting for living expenses here.

For each city, we’ve taken the latest median price from Domain’s “State of the Market” report, last released in April 2017.

With that in mind, let’s take a look at how long it would take a resident in each city to save for a house if they gave up their $4 coffee every day.

Sydney

Median house price: $1,151,000 For a 20% deposit, Sydney siders would need to give up 57,550 coffees that cost $4 each.

That’s 157 years of worth of coffees.

Melbourne Melbourne property skyline

Median house price: $843,000

For those living in Melbourne, a 20% deposit of $168,000 would require giving up 42,150 coffees.

That’s only 115 years of coffee – a steal when compared to Sydney! (Except not really.)

Brisbane

Median house price: $532,000 It gets a little easier up north. A 20% deposit of $106,000 will only require 26,600 coffees, which is 72 years worth of savings.

Darwin Median house price: $598,000 Who knew Darwin prices would be more expensive than Brisbane?perth

At this rate, a 20% deposit of $119,000 will take you 29,900 coffees, or 81 years worth of saving.

Perth  

Median house price: $561,000 Perth has taken a little bit of a hit on its property prices recently as the mining boom winds down.

A 20% deposit here will take you $112,000, or 28,000 coffees and 76 years worth of savings.

Hobart 

Median house price: $389,000 Finally, some relief at last!

Hobart’s modest prices will take you just $77,000 for a deposit, or 19,450 coffees – that’s just 53 years worth!35097909 - view of downtown area in adelaide, south australia, at twilight

Adelaide 

Median house price: $514,000 Down by the bay a house deposit will cost you $102,000, which is 25,700 coffees worth over 70 years.

Canberra

Median house price: $705,000 Prices rise again in Canberra.

A 20% deposit will set you back $141,000, which is 35,250 coffees – which will take you 96 years to save.

Read the full article here

This is why Melbourne is becoming a better international city than Sydney

The battle between Sydney & Melbourne has been around for as long as anyone can remember.

But when it comes to international ranking – who takes the lead?

According to this article on Business Insider Melbourne continues to shine – find out why.

Melbourne and Sydney have both been rated as global elite cities in A.T. Kearney’s Global Cities 2017 report. melbourne-2262233_1920

The report’s Index ranks the world’s most influential cities and, in an Outlook report, those likely to become more important on the global stage.

Melbourne is on the move and is rising faster on the global rankings than Sydney.

The Victorian state capital jumped nine places to rank sixth in this year’s Outlook, the highest ranking the city has achieved since the Outlook launched three years ago and well ahead of Sydney at 13th.

The Outlook ranks cities in terms of their future potential, scoring on metrics across four key areas: personal well-being, economics, innovation and governance.

Here are the global city outlook rankings:

Source: A.T. Kearney’s

Melbourne’s jump came on the back of improvements in infrastructure and private investments, which bode well for sustainable long-term growth of the city. melbourne-city-park-happy-peace-victoria-garden-300x185

It also took the global top spot for personal well-being, especially in the area of environmental performance.

Melbourne was also ranked 15th in the Index, holding on to its 2016 position.

The Index ranks cities based on current performance on metrics across five critical dimensions: business activity, human capital, information exchange, cultural experience and political engagement.

Click here for the full article

Weekend Video: Mathematical Magician

APRA want you to go on a debt diet

APRA wants you to go on a debt diet and it seems to be getting its way…

National Australia Bank has followed Westpac and ANZ, hiking rates for mortgage holders making interest-only repayments, while reducing rates for owner-occupier customers paying off their loan. bank reserve interest rate save money finance loan

Investors and owner occupiers who opt for interest-only will have to stump up an extra $102 a month, or $1,224 a year, based on the average loan size of $350,000 over 30 years.

Owner-occupiers paying principal and interest have been given a small reprieve with $17 a month off their repayments, a savings of $204 a year.

RateCity Money Editor Sally Tindall said today’s changes were once again attributed to APRA’s new regulatory requirements.

“An astounding 41 per cent of loans on the Big4 banks’ books are interest-only. 

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That’s a huge proportion of Australians who aren’t paying off a single cent of debt.

“It’s no wonder APRA is coming down hard. They want Australian mortgage holders to go on a debt-diet.

“Paying interest-only, particularly when you are an owner-occupier, is an expensive business.

“The average owner-occupier who elects to pay interest-only for the first five years of their loan will pay $67,810 extra to NAB over the life of their loan.

“When you look at the big picture, a couple of hundred dollars in savings each month pales in comparison to the long-term benefits of paying down debt,” she said.

NAB STANDARD VARIABLE RATE (SVR) CHANGES

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Calculations based on the average sized Australian loan of $350K over 30 years.

BIG4 – CURRENT SVR RATE LIST

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The Zen of Wealthy – When Is Enough… Enough!

How Much Money Do You Need To Be Wealthy And Free?    money happniess

If you had one million dollars, would you take risks and work hard to make it five million?

Suppose you had five million – would you be wealthy enough to relax and pursue non-monetary goals, or would you push onward to reach ten million dollars?

When is enough, enough?

This is a question I’ve had to answer for myself.

At what point do I turn off the monetary spigots, put my investment portfolio on auto-pilot, and completely re-focus my life?

Key Ideas

  1. Reveals how more can actually be less.
  2. Discover how getting wealthy is just one step to the real goal.
  3. How to connect your values to enoughness.

It’s not a simple question because you pay a price to continue onward and upward, and you pay a price to stop.

It’s a very personal question as to which price you want to pay.

At some point, more money becomes meaningless in terms of the quality of your life, but where is that point?

It’s an important question, so let me explain with a little story.

Why A Private Yacht On The French Riviera Is Too Much

During a recent summer vacation I took my family to France for a month.

As we traveled along the French Riviera, we spent two days in Monaco. 

If you’ve never been there, it’s a beautiful place with an amazing concentration of wealth.

I’ve never seen more Lamborghini’s, Bentley’s, Ferrari’s anywhere else.

Driving a Mercedes or BMW in that town is like driving a 1970s Chevy station wagon in the United States.

The level of wealth and luxury is astounding.

Even more amazing than the luxury cars were the luxury yachts in the harbor.

I had been to Monaco twelve years earlier and was amazed by the yachts back then, but on this trip, the size and opulence of the yachts was over the top.

Some of these personal boats were so large you had to look closely to make sure it wasn’t a commercial cruise liner.

We’re talking huge yachts that require large staffs to operate, incredible overhead to maintain, and cost more money to purchase than most upper-middle-class Americans earn in a lifetime.

As I walked along the harbor with my daughter gawking, we watched one of these mega-yachts dock. 

It was a very involved process to bring a yacht that size into port. yacht

I noticed 12 deck hands working the boat, 2 harbor personnel, and much more going on while the family that apparently supported this operation stood passively on the upper deck watching over everything – but doing nothing.

The most striking part of the whole scene was how there wasn’t an ounce of happiness written on the faces of any one of the three generations of family standing on that top deck.

The contrasting effect was startling.

Here was a family with every luxury, convenience, and personal possession that money could afford, and every one of them looked less happy than the masses walking along the harbor being entertained by this parade of luxury.

I didn’t want to read too much into the scene, because it could have been a miserable family that had received bad news recently, but it made me think and brought up some interesting questions.

How Much Money Do I Need To Be Happy?

I wondered if I would have enjoyed spending the day on that fancy yacht more than on shore?

Would the additional money to support yachting bring more happiness than a day spent at the beach?

Surprisingly, the answer was “no.”  calculator coin money save debt

The thinking process that led to that conclusion is what prompted this article.

You see, I often work with my financial coaching clients around issues of how much money they need for financial freedom because many are already successful entrepreneurs pursuing even greater success.

“Enoughness” is an important concept to become clear on because it dramatically affects what goals you pursue and how you pursue them.

In short, it’s essential to the coaching process.

Using my own business as an example, I have no intention of becoming the next famous guru like a Robert Kiyosaki or Suze Orman.

While they both have some worthwhile ideas to share with their audiences, I’m not trying to deliver a “mass appeal” message.

I have no intention of diluting or repackaging my information so it’s palatable for New York Times bestseller status.

My only focus is serving independent investors and business owners genuinely committed to achieving wealth in this lifetime.

As a result, my message is meatier and sometimes a little harder to digest, but it attracts sophisticated and experienced clients instead of the masses of people who still believe in oversimplified, get-rich-quick nonsense.

Frankly, I like it that way. family child children house population demographics dollhouse brick

In other words, I’m happy with existing somewhere out on the long-tail of my market.

It’s enough for me.

I want to grow large enough to achieve my financial goals for this business, serve my target market exceptionally well, and deliver a message that’s in integrity with my beliefs.

Conversely, I want to remain small enough so I can continue to walk in public anonymously without being recognized.

It’s a sweet spot I pursue – not too large, not too small, but just right.

Becoming Wealthy “Enough” Means Having Just The Right Amount Of Money To Maximize Life Experience

It’s the same way with building wealth.

Getting back to Monaco and yachts, the reason I had zero “big-boat-envy” was because it would add nothing of value to my day.

Everything was perfect just the way it was.

We had been in Monaco to meet up with some friends at the beach.

Our kids played great together, we rented chaise lounges to relax in, ate wonderful food, shared stimulating conversation, played in the surf, and had a total ball together. monaco

I couldn’t ask for a more enjoyable day.

The more I thought about it, the more I had trouble imagining any reason why I would want to own a luxury yacht like that.

It seemed to be more hassle than it was worth.

Even if my wealth was so massive I could afford to purchase one and staff it, I wouldn’t want to own one.

It might be fun to rent for a week or two just to have the experience of cruising around on one, but ownership would limit my experience of life rather than add to it.

It would give me new responsibilities to handle and new decisions to make.

Frankly, I can have more fun and more life experience on shore for a lot less money and hassle than I can on a fancy yacht at thousands of times the price.

You may notice that implied in the above statements is my underlying values.

I don’t value unnecessary luxury.

I like nice things, but luxury has never held much appeal.

For example, a BMW drives nicely, but the luxury of a Rolls Royce feels stodgy and wasteful.wealth

Renting an apartment on the French Riviera for a week is fun and great adventure, but owning a luxury yacht to cruise the Mediterranean feels cumbersome.

The extra luxury hinders my fun rather than expands it.

Like all things, spending also has its balance point.

More isn’t always better, and sometimes less can be more.

You can have too much of a good thing.

How about you? Where do you stand on these issues?

Your Definition Of Wealthy Is A Statement Of Your Values

For me, the values statement lurking behind my attitudes is a clear preference for adventure and experiences in life.

Sitting on a yacht with a full-time staff may sound nice for a few days, but would get real boring in a hurry. mind set rich money lesson think motivational learn teach money

I wouldn’t have much interaction with regular people, and I’d be insulated from daily life experience by living in an artificial bubble of existence.

Contrast that to playing in the surf with other families of kids, watching street artists, and dining at a Jazz club on the beach that evening (which is what we did).

I like the real-life, common experience with all the flora and fauna over the sterile, luxury experience.

I like the diversity and the spice – it’s fun.

Others might disagree and call me wacky, but that’s what I enjoy.

What I’m trying to communicate is that at some point, you have all the money you need to have all the experiences you desire.

When you reach that point, you have to question the value of spending your life energy earning more.

  • I only need one bed to sleep in, one chair to sit in, and it doesn’t take a lot of money to buy these things. love_or_money
  • World travel, considered a luxury by many, can be purchased for a reasonable price. The more luxury you buy when traveling, the more insulated you become from the experience you sought from travel in the first place. There’s an efficient budget for traveling that avoids unnecessary hardship without insulating you from the country you came to visit.
  • It doesn’t take a lot of money to buy a good bicycle or backpack, but it does take time, health, and freedom to enjoy bike trips and backpacking adventures.
  • If travel and adventure isn’t your passion, but arts and crafts are, then the same rule applies. It doesn’t take a lot of money to pursue your artistic goals – but it does take time and health.
  • Close, personal relationships cost very little to flourish, but they do require time to cultivate.

The message should be clear: the stuff that’s really important in life – that which contributes to happiness and fulfillment – doesn’t cost a lot of money.

I know it’s a cliche, but it’s true.

Happiness isn’t the exclusive domain of the wealthy.

In fact, study after study has shown there’s very little relationship between happiness and wealth once your income rises above abject poverty.

The reason is simple: unnecessary luxury is no substitute for quality, life experience.

How Being Too Wealthy Can Limit Freedom

Surprisingly, it can work the other way around: more money can lead to less freedom and happiness.  wealth money

Earning and managing more money requires additional effort.

Reaching mega-wealth raises your profile in such a way that it may place limits on your freedom.

That’s why celebrities and tycoons have body-guards, private ranches with security gates, and more.

They become targets of attention and can’t travel anywhere and do as they please without getting bothered.

Their success actually limits their freedom and experience of life.

Another example where success limits freedom is the successful entrepreneur who becomes trapped by the empire he created.

He stands at the hub of many responsibilities as all the spokes of his empire turn around and around keeping him busy and involved.

Where’s the time for all the good things in life when meetings and other business obligations place endless demands on his time? 

The truth is you will pay a price to build your wealth.

It takes time and effort to earn and compound wealth.

Even after you earn and save the money, it must be managed and invested.

All of this takes effort. Sure, you can hire advisors to do things for you, but in the end, you’re responsible and you must make the decisions.

Earning and managing money is work and it takes time… time that can’t be spent on other experiences in life.

In Summary

So where do you draw the line – is it one million, five, ten, twenty? 

At what point do the diminishing marginal returns of additional dollars make you say “Enough!”?

At what point is your time and life energy more valuable than growing your financial empire?

These are questions only you can answer, but assuming you’re successful at building wealth, someday you’ll confront them. It’s a certainty.

They’ll beg to be answered and they won’t let go of you until you reach a conclusion.

My personal experience and the experience of my financial coaching clients is each person has a point where enough is enough.

It’s like Goldilocks And The Three Bears where one choice is too large, one is too small, and one is just right.

There’s a sweet spot to building wealth where you spend no more effort than is necessary on acquiring money; yet, you grow your wealth to the point that money doesn’t limit your ability to enjoy experiences consistent with your values.

It’s the balance point where you’re successful enough to do as you please with your life, but not so successful that the freedom you sought in the first place is lost to public notoriety and business demands. Property News

The point is that happiness and fulfillment are the real goals – money is just a lubricant to achieving them.

Less money can be more happiness.

Each person’s life requires a different amount of lubrication to run at maximum efficiency.

Is that level of success one million, five million, ten million, or more? In the end, it’s a personal question only you can answer.

The Step 3 course in the 7 Steps To 7 Figures series shows you how to answer this question and design your plan to achieve it.

I hope it helps you find enoughness.

Is Sydney heading for a rental crisis?

Investors knocked out.

An idea seemingly out of left field given record dwelling completions in Sydney, but stick with it. Sydney property market

Despite record apartment construction in 2016, the rental market is ultimately governed by the supply of rental properties on the market and the demand from tenants, not the absolute number of properties built.

Sydney is a city with an unusually high demand for rentals, for a few reasons.

Firstly, because it’s an expensive city to buy a home to live in, and in an era where job stability is far less common most inhabitants will be a part of the rental market at one time or another (if nothing else the high rates of stamp duty ensure this).

Sydney can also be a transient type of place – the harbour city attracts the most migrants from overseas, but also loses the most incumbent residents interstate or to the regions of New South Wales.

This is a dynamic which leads to a high rate of churn and lots of tenancies.

As home to the strongest economy in the nation in recent years, the annual rate of net overseas migration into New South Wales has been accelerating again, from 50,000 in 2010 back up to to more than 76,500 at the last count in September 2016.

Overseas migartion

And then there is the unprecedented boom in the number of international students.

International students

At the same time, a significant crackdown in lending to investors is underway, with a credit squeeze and rates being hiked on investor loans, while investors increasingly starved of credit are beginning to turn their interest to cheaper markets upstate or interstate.

Changes announced in the state budget were designed to bring more first homebuyers into the market in their stead.

Domain Group reported this week that apartment rents have increased by 17.4 per cent in Sydney over the last five years, with the growth in apartment rents topping 20 per cent in half a dozen sub-regions.

Sydney rents

Sydney may not be at full employment just yet, but with an unemployment rate of just 4.4 per cent it’s been getting pretty close, and we know from historical experience that this tends to bring a high demand for rental properties.

Unemployment rate

Sydney also has a track record of seeing rental prices spike when demand for investment properties falls sharply, such as from 1985 to 1988 (negative gearing ban), and in 2008 (financial crisis).

A post to bookmark and watch over the next year.