Link love (the sleep deprived edition)

An assortment of random, workplace related thoughts:

  • Instead of getting caught up in jealousy and insecurity, I’ve been really trying to consciously focus on learning from other people at work.
  • The outcomes of something I worked on came in for some criticism the other week. A couple years ago I think I would have been devastated, but I took it in my stride. I’m confident enough in myself, my judgement and skills these days to stand by what I do, especially when a number of others came in to bat on my side.
  • Suddenly it seems a bunch of people I used to work with have snagged shiny new jobs as “Head of Something or Other”. I have zero desire to be head of anything, but I do get a small pang of professional envy…

This week’s links

Bored of all the jobs, don’t know what to do with myself (Two great points from Ask a Manager here, I think: Funding your ability to live life is the core of success; and why are some people expected to be okay with working for a paycheck while others are encouraged to settle for nothing less than their dreams?)

The biggest lie I ever told

Forget cardboard houses – sometimes you’re sailing through life on a cardboard boat

The truth about work-life balance

Why I don’t want to be self employed

How can you tell if an experience is worth the money?

Motivation is a myth

Money questions to ask before the wedding

How to feel good

Polling people on their lady parts

What keeps me in Auckland? Work. Loved ones. Malaysian food. The landscapes. 20 degree days in June.

Nip up Mt Eden and look out across the city at Rangitoto. How great is that view? Swing round and look back out at the Waitakeres. We live in a tree city set among volcanoes. It’s like Endor. Ewoks would be happy here. We have relaxing beaches on the North Shore and full-on ones out West. Jump on a ferry to Waiheke, have a sniff around Rodney. It’s bloody great around here.

 

 

3 ways that being lazy saves me money

How being lazy saves me money

I kill it every day at work, but outside of the office my middle name might as well be Snorlax.

I hate gyms with a passion

They are a strange and foreign environment. I spent a year in an apartment with a free building gym and spent about 10 minutes in it, total. I know better than to waste money on a membership I’ll never use. If I must exercise, I will run and hike outside.

I can’t be bothered with contact lenses anymore

In summer maybe, but even then, not full time. Between battling dry/sensitive eyes and the hassle of putting on makeup (a necessity to liven up my face sans the visual dominance of glasses) it’s too much work for the sake of vanity.

I procrastinate like it’s my actual job.

I haven’t had a haircut in six months and counting. Haven’t been to the optometrist or dentist for two years. The latter is definitely NOT good and I’m going to rectify that soon, I swear.

Life with a mortgage (is surprisingly sweet)

Life with a mortgage is pretty sweet

Living with a mortgage ain’t half bad.

My contents insurance, which WAS around $1200 a year when I was renting, plunged to about $400 when I bought my house. Car insurance decreased by a few bucks too. Unexpected fringe benefits of home ownership! My jaw literally dropped when I heard the new figure and I had to ask the rep to repeat it back to me.

My house insurance is about $1250 a year. And since I got a $1200 cash gift from my new bank when I confirmed my mortgage, it’s basically free for the first year.

Council rates (the equivalent of property taxes in some of your countries) are pretty darn affordable. Mine are just under $1500 a year. This is typical for houses in this range; when house hunting I saw probably up to a $500 variation in annual rates between all the properties, based on their value.

And YES, before all you (non NZ) lovers of renting jump in, I’m prepared for the costs of maintenance – I will be referring back to my pre-purchase house inspection report plenty over the coming years, which was brimming with recommendations around everything from insulation to safety glass.

Replacing the deck and repainting the roof will probably be the priorities – but a new kitchen just might come first. There’s no rangehood, no splashback (both noted in the report as matters to remedy) and everything just generally needs an overhaul. Might even knock through a wall and make the whole living and kitchen area open-plan with an island.

How much am I paying?

My 30-year mortgage is structured in three parts. Here’s what it’s costing me per fortnight:

  • $77.83 ($30,000 floating loan @ 5.29% – was 5.44% at drawdown but rates dropped since)
  • $492.24 ($215,000 fixed loan for 2 years @ 4.35%)
  • $474.30 ($200,000 fixed loan for 3 years @ 4.65%)

So I’m paying the bank $1044.37 every fortnight, plus I’m also repaying my family at $200 on top of that: $1244.37 all up.

Thus far I’ve also knocked another $3,000 straight off the principal with extra lump sum payments but now I need to turn my attention to a few other financial priorities.

Mortgages in NZ

So, if any of that sounds weird, here’s a simple intro to mortgage options in NZ.

Or if you’re not much of a video person, let me try to run you through how things work here.

Fixed vs floating: There are fixed mortgage rates and floating (variable) mortgage rates. Fixed rates are typically lower.

The minimum term you can fix for here is generally 6 months and the maximum 5 years. Lots of people (like me) split up their mortgage into a few separate loans, some floating, some fixed. Floating allows you to focus on repaying the loan without penalties, while fixed gives you some certainty around rates (but with less repayment flexibility). And thus, a combo can offer the best of both.

Then there are a few more types of mortgage accounts available with floating rates:

Revolving credit loans are basically a giant overdraft, with one account acting as your loan, chequeing and saving account all in one. Your pay goes straight into the account and the idea is to leave the money sitting there as long as possible (eg putting your expenses on a credit card and paying them off at the end of the month). By keeping the account balance (and thus, loan balance) as low as possible at any time, you save on interest because the bank calculates interest daily.

Obviously this requires discipline and organisation, though you may be able to set it up so that your credit limit reduces over time, making it easier to stay on top of things and ensure you’re making progress. When it comes to refinance/rollover time I imagine I’ll choose revolving credit for part of my mortgage.

Similar but different, an offset mortgage is linked to your other accounts with the bank. Your mortgage interest is offset by the amount you have in your other accounts. For example, if your mortgage balance was $500,000 and you had $20,000 between your savings and chequing accounts, you would only be paying interest on $480,000. But compared to revolving credit, offsetting is not offered by as many banks.

And in case you missed it: my step by step guide to actually buying a dang house, from getting preapproved to settlement day.

Link love (Powered by cake and coats)

NZ Muse link love

Dispatches from our animal kingdom:

  • Our chickens have probably grown about 50%. They are huge compared to when we first brought them home! They still aren’t laying yet. Not exactly sure how old they are but their combs haven’t turned red yet (they are in the beginning stages)

 

  • We started off feeding them pellets, which the dog used to try and steal. Now we feed them mash, which she doesn’t really seem interested in.

 

  • The dog tends to follow them around curiously but I’m pretty sure we’ve drilled into her that they are friends, not foes.

 

  • But she will try to chase birds. In fact, she actually managed to catch one the other, unbelieveably. It eventually died 🙁

 

  • She is me in dog form – seriously food motivated, and prefers drinking warm water to cold #asianforlife.

 

This week’s links

Don’t follow your passion. I wholly agree, as per this and this

What if you just don’t make enough money to get ahead?

Auckland house shopping with a $550,000 cap

Personal finance lessons from Buffy

This has been a sad week for humanity. But let’s remember the vast majority of us are good folk and let’s do our bit to preserve that. Here are 2 pieces from Captain Awkward and Ask Polly that made me cry while on the train to work.

Be smart about borrowing

This month would have been the month I paid my car off. (If I hadn’t dug into my savings and cleared the loan last year, that is.)

If there’s one thing I learned from my experience, it’s the importance of shopping around. Consider a few things: interest rate, fees, and repayment flexibility (in other words, can you make extra payments, or pay off your loan early, and are there penalties?).

Hopefully I won’t need to borrow for a vehicle again, but if I do I’d look into:

Car loans

Secured loans always have lower interest rates, but there are a few more hoops to jump through. For example, I would have had to go back and forth with my bank to ensure they approved of the vehicle and were happy to lend on that specific one. You will probably also need full car insurance, and to let the insurer know the car is financed. Banks and credit unions all offer secured car loans, as do other finance companies.

Personal loans

Higher interest rates, but less hassle. It would eliminate the step of clearing the car with the lender, as the loan wouldn’t be secured against it. As with car loans, banks, credit unions and other finance companies offer unsecured personal loans – you might find with some lenders like Secure Trust Bank that rates vary depending on the amount of the loan.

P2P lending

There’s a growing number of P2P lending platforms on the market – there are already a handful here! P2P loans can be for a huge number of things, but cars are a common one. Rates vary though and generally you need to start an application to find out what you would get.

5 ways I’m accidentally frugal

5 ways I save money by accident

I have a penchant for good food and travel, but by happy accident, there are lots of ways in which I manage to save money with zero effort.

I don’t really drink … anything

Alcohol, coffee and soft drinks don’t really agree with my digestive system. I don’t know how much NOT buying any of these on the regular saves me but I bet it’s a reasonable amount. Plus I’m a lightweight so if I do drink one is always enough.

I’m unfashionable

I have no sense of fashion nor interest in it. Every so often I go through a spurt of wanting to be stylish and plan to start accessorising and planning outfits more carefully – which never lasts very long before I revert to my lazy ways. There’s no point trying to fight my inner nature.

I’m kind of antisocial

I have friends, I swear, but I’m hardly swamped with invitations out every week. (Years ago I figured I needed to start making new adult friends and swore to start going to Meetups: then I realised I find it hard enough to keep up with my small circle and if I can’t even maintain my current friendships I shouldn’t add anymore.) My social calendar is sparse and I like it that way. More time to cuddle up with the dog and a book at my cosy place.

I love carbs

Seriously, I could basically live off potatoes, pasta, bread and rice.

I hate driving. And parking

Having a car is a necessity here but it’s also expensive! There’s no reason for us to have two vehicles and being a one car household definitely saves money. It’s occasionally inconvenient but those instances are rare.

*Part of Financially Savvy Saturdays on brokeGIRLrich, A Disease Called Debt and Femme Frugality*

How To Worry Less About Money: 3 things I took away

How to worry less about money - book review NZ Muse

The most refreshing thing about How To Worry Less About Money is the author’s unflinching observation of how money affects relationships. In this book, John Armstrong relates this back to his own marriage.

“My own experience is that money worries can cause terrible conflicts in relationships. I fear I have damaged Helen’s life by not making more money. And there are stylistic clashes: I like being lavish; she’s much more restrained. For instance, I like the idea of going to fancy restaurants; she prefers the modest family-run place round the corner, or chicken soup at home. (And this is all the harder to deal with because our earnings point in the opposite directions to these personal tastes).”
Well, I’m the Helen in my life, and I can vouch for the fact that I have felt resentful many a time. I wish that weren’t true, but I am human, and perhaps not always a very good one. This is us, down to a T, especially the incongruence between tastes and earnings.  I would be curious to hear Helen’s viewpoint.

Money and marriage

Armstrong points out that in the world of Jane Austen, having enough money is taken very seriously (and rightly so!) as a necessary condition of happy marriage. Money reduces the fragility of a relationship, and makes people more relaxed. Money buys luxury, privacy and  stimulation. Money is for some people an aphrodisiac.

All of these things resonate so hard (perhaps not exactly the last one, but financial stress is a huge turn off and therefore lack of money is definitely a turn off).

Alas, there are no true solutions offered up, despite the practical promise offered in the title. This is a philosophical read about how we think about money, relate to it, the space it occupies in our minds and lives.

It’s a book about money worries, as opposed to money troubles.

Money troubles vs money worries

Money troubles, Armstrong contends, are urgent. They call for direct action and can only be resolved in one of two ways: either you gain access to more money or you go without something else.

Money worries, conversely, are about imagination and motions, not just what is happening now. Money worries often say more about the worrier than the world. They’re about what’s going on in your head not just in your bank account.

The meaning of money

When you strip money right back to the fundamentals, it is just a resource – a means of exchange.

“In other words money is an instrument … Ultimately the task in life is to translate efforts and activities that are inherently worthwhile into possessions and experiences that are themselves of lasting and true value.

“That is the ideal money cycle. Our relationship with money becomes unhealthy when we remove it from this cycle. That happens when we stop seeing money as potential possessions and experiences – but rather see possessions and experiences as potential money.”

We’re all bombarded these days with the reminder to DO WHAT YOU LOVE. Armstrong acknowledges that we need to make enough money to meet our needs and we also need to do things that help us make sense of who we are and contribute to collective good.

You can escape by not caring about meaning. And you can escape by not caring about having much money.  But a lot of people care about both.”

* * *

If you know roughly what to expect going in, this is a great read. I related to so much of it, I was constantly nodding along and found myself bookmarking what seemed like every other page.

If you’ve read it, what did you think?

Link love (the winter edition)

Link love NZ MuseI’ve been reading a lot lately. Books about money, even! While it’s wildly idealistic and rather fluffy in parts, there were 5 particular passages in The Soul of Money that stood out to me.

  • “I have seen the powerful grip that money has on our lives, the wounds and hardship that it can impose on us, and the immense healing power of even the smallest amount of money when we used it to express our humanity – our highest ideals and our most soulful commitments and values.”

 

  • “We all have an identifiable, though largely unconscious and unexamined, relationship with money that shapes our experience of life and our deepest feelings about ourselves and others. Whether you count your change in dollars, yen, rupees, or drachmas, money is one of the central, linchpin issues in all our lives. It is in mine, and it is a central issue for everyone I’ve ever met, no matter how much or how little money they have.”

 

  • “We are born into a culture defined by money, and our initial relationship with money is the product of that culture, whether it is one based primarily in poverty, in a country like Mozambique or Bangladesh, or a culture of affluence and wealth in a country like the US or Japan. From our earliest experiences, we learn money’s place and power in our families, our communities and in our own lives.”

 

  • “No matter where we are in the political, economic, or financial resource spectrum, the myths and mindset of scarcity create an underlying fear that we, and the people we love or care about, won’t have enough of what’s needed to have a satisfying, happy, productive, or even survivable life.”

 

  • “No matter how much or how little money you have flowing through your life, when you direct that flow with soulful purpose, you feel wealthy. You feel vibrant and alive when you use your money in a way that represents you, not just as a response to the market economy, but also as an expression of who you are.”

This week’s links

Why a paid off house is so important (hell yes to every point)

The importance of a ‘don’t be boring’ budget (hell yes to this too)

Things to move towards, and away from

Chatting about self employment

How to squeeze more out of your limited holiday time

The power of extra mortgage payments

Lots of personal finance bloggers, especially after becoming debt-free, say saving is boring.

I don’t get it.

I love watching my money grow and the numbers tick up. There’s nothing better – except cheesecake, maybe.

I’m a bit of a hoarder in real life, so maybe it’s not surprising that I also like to hoard money (real or otherwise – sometimes I think wistfully of all the Neopoints I had banked back in the day).

I was so resentful of my consumer debt, basically because I didn’t actually get anything out of it. It was all incurred while supporting an unemployed partner – less consumer debt and more keeping up with bills, really.

But now that I have a mortgage, I just might be changing my tune. It’s a different story as I deliberately took on this debt, plus the payoff is so much bigger.

I don’t mind my mortgage as I wouldn’t have a home without it, but I’d like to minimise the massive effect of compounding interest working against me.

The $3,000 in extra lump sum payments I’ve made? Apparently saves over $9,000 in interest over the long run.

I get it now…!

Compromise where you can – and where you can’t, don’t

Compromise where you can - and where you can't, don't

Who would’ve thought that the latest Captain America movie could spawn such wisdom?

To live in this world is to compromise. And to be in a relationship is to compromise.

I kept reaching my limit … or so I thought.

And then I would push through. Just a little longer, I would think. Surely things will change. This can’t continue indefinitely.

For better and for worse, right?

But when something or someone is the sole source of your stress and there is no sign of it changing – it’s time to reevaluate. Be kind to yourself, first and foremost.

You may not know where your true limits lie. I know I didn’t. And that epiphany may wind up coming from elsewhere.

In my case, I was physically falling apart – in rather obvious ways. That’s when I knew I had to draw a line. That was something I could not compromise on.

Listen to your body, because it doesn’t lie.

I may have had to learn the hard way, but now I know where I can and cannot compromise.