Apparently, this is the average cost of living for an Australian from the Cradle to the Grave according to an article I read on news.com.au. I quote “Using ABS research and economic analysis, the figure estimates just how much money goes into keeping us happy and healthy for our average life expectancy, which is nearing 82 for a child born today.”
Diving into the figures is really quite interesting. For those with an American Express card, for your convenience, they send a split on your spending at the end of the tax year. Which is quite entertaining/sobering!
However, the reality is, after tax, how many people out there have pulled this in through their working lives? And worse, how many have provided for their retirement years? In terms of being able to maintain a standard of living.
Living the dream or existing average?
Living the dream would be great. Fast cars, more family time, travel, great food, and wine, healthy and vital. All of which may be part of the things that you are looking for as part of life. However, the above isn’t really factored into this $2.17m – that figure is based on average.
I am sure you are still coming to grips with the fact that $2.17m (not my figures) and that is pre-tax is the AVERAGE cost – how about for those of us that enjoy some colour in our lives – $3, $4, $5 10m? This bodes the question – outside of your job – Plan A, what else do you have running which could help you kick this necessary financial goal?
Taking your Plan B and making it Plan A
Having something else going on the side is increasingly popular. What is particularly interesting is that for many, this isn’t to fund the extras – it is to now get by. Having the pressure lifted from your job, so that you have alternative sources of income provides peace of mind and diversification – in other words reduces risk. Yet finding the time for something else to be going on the side, is not that easy – well actually it is, but more on that shortly.
Then there is the secret “Lifestyle Eroder”
Inflation is a lifestyle eroder, particularly for those who are on a fixed income. Rising prices erode their ability to maintain current standards or living and arguably is one of the biggest drawbacks to holding cash and bonds. Instead, real assets, that is assets where prices move up with inflation can be more prudent. These assets are typically property and shares (keep your eye out for our new property offering, coming shortly).
On the weekend, I spent time with a group in Singapore, running through cashfow investing, showing them how they can be generating additional upfront income by getting their “lazy money” working harder. By lazy money, I mean that which is currently sitting in cash. As a group, they were very open to it, as Singaporeans generally are. If you haven’t been there for a while, you will be blown away by the shifts. Part of this success is down to the series of concrete 10 year plans – to diversify the economy and its revenue streams and then invest the proceeds back into the overall quality of life of the country. It seems that this plan is working very nicely indeed for Singapore, so why not have something similar working for you? Do you have your Plan B?
So what do you need to invest?
The key thing here is time – the one resource we all have limits on. So, to make this nice and easy, the requirement is really very low. By investing less than an hour a month, having a solid Plan B can be a reality. You just have to simply be open to it and the need for actually having a Plan B in the first place. Based on the need to make $2.17m to cover a lifetime, more people will be looking hard for this additional money so why not let us help you?
One hour a month
One hour a month is a pretty reasonable request and when you consider the alternatives are – well, enough said! A good place to start is right here to learn more about what we do and how that could help you.