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  • Link love (the shaky edition)

    NZMuse - Link love roundup with awesome reads from the week

    You’ve probably heard about the earthquakes in New Zealand. I’m very thankful to be untouched and unscathed up here in Auckland – zero impact for me personally – but it sure has got me thinking about how we really should get an emergency kit together.

    Sometimes a small town stirs something in you that mutters ‘man, maybe we could retire to a place like this’. While Kaikoura’s township itself did not hit that particular nerve for us, we did so admire the weathered old bloke who ran our chartered fishing trip and the lifestyle he clearly enjoyed – and the vibe he emanated was definitely of the ‘wow, one day I hope that’ll be us’ variety. And most memorably, the scenery around Kaikoura was just breathtaking. Here are a few photos from our 2013 trip (via this blog post)

    Kaikoura alps - mounains and cloud

    Albatross landing on water off Kaikoura coast

    I’ve donated to the Red Cross campaign – here’s the link if you would like to, as well.

    This week’s links

    5 lessons from 5 years of marriage

    The subsidies that make success possible

    Greed – the PF topic nobody talks about

    Good things in the wake of a life collapsing

  • 3 ways building a new home can save you money

    Golden Homes

    Ever thought about building a new house? That’s how my parents built their ideal home back in the 1990s and they’re still there 20 years on.

    With an average of 47 different tradespeople working on one house from start to finish, managing a new build yourself – not to mention keeping a close eye on your build budget – can seem rather daunting! When you’re time-poor but striving for the kiwi dream, working with a building company is the way to go: full control, minimal effort and no budget blow outs.

    I talked to the team at NZ building company Golden Homes to research the ins and outs of building a new home and discovered a lot of good reasons to do it. Here are my top three:

    1. Minimal maintenance

    Repairs and replacements are a big expense for most homeowners. But with a newly built house, you can relax knowing you won’t have to worry about fixing the roof or the deck any time soon.

    You can also feel safe in the knowledge that a new home has been built user newer technology and more durable materials – such as steel framing vs. traditional timber framing. Steel frames reduce the risk of warping, shrinking or rotting, and thus of cracks in claddings or linings (also a plus in earthquake-prone areas!).

    2. New homes are more efficient

    Good news for your finances – living in a new home means you’ll most likely get to save on running costs. With everything built to the latest standards and codes, expect those benefits to filter through in energy efficiency.

    Building new is also good news for your health – we just put in R 2.9 ceiling insulation and can already tell the difference. Seriously, imagine coming home to double glazed windows and R 5.0 in the roof off the bat – no more putting up with cold or damp housing! Hand on heart, having lived in so much substandard housing and felt the physical effects, I can tell you that living in a healthy house is priceless.

    3. It’s done right the first time

    It’s rare to find your perfect house, and ripping up flooring, repainting and remodelling may be required to get what you want out of an existing house. Renovating can be a headache – not to mention expensive!

    With a building company like Golden Homes, 99% of houses are built with customisation – whether you want to start with a blank canvas or make a few tweaks to one of their existing designs, it’s easy to create your own masterpiece.

    Have you built, or thought about building? What influenced your decision?

  • Link love (the emotional edition)

    NZMuse - Link love roundup with awesome reads from the weekWell, well, what a week it’s been.

    Rather than dwelling on the hideous, let me share with you a short film that made me bawl in a good way this week. If you can’t watch it right now, bookmark and save for later. It’s a beautiful thing.

    This week’s links

    Every word rings clear and true – read this if you are a woman, or in fact a human being with a soul: We were woefully unprepared

    Juggling priorities: money, community and a full life

    The financial impact of kindness

    The terror and beauty of not knowing

    Dealing with dissatisfaction in ourselves

    If nothing else, remember this. Happy weekends.

  • Husbands, housework and harmony: Why do men who earn less also do less housekeeping?

    This just in from the Atlantic:

    “Things change when the wife earns more than the husband. In that case, he does less than he otherwise would. In female-breadwinner households, the greater the income disparity, the less housework the husband does.

    The Cassinos speculate that being out-earned by their wives threatens mens’ masculinity, so they react by doing less cleaning, a stereotypically feminine task.

    The only exception to this double-injustice? Cooking. In Cassino’s study, between 2002 and 2010, men upped the amount of time they spent cooking each day. And cooking didn’t follow the same gender-threatened trend cooking did: The more their wives earned, the more time the men spent in the kitchen.

    Cooking, they speculate, has become manly—more of a leisure activity than a chore, and one that can involve flaming-hot meats, no less.”

    Sobering reading. Full disclosure: division of housework has never been totally smooth sailing for us. And oddly enough, it was at its roughest while he was unemployed. Funny, too, that cooking was the task most seized upon, or at least, the least avoided, though in our case that’s how it has always been.

    Rather than “the best househusband ever” as a friend suggested (and as you might EXPECT) I found myself not only bringing home the bacon but having to pick up far, far too much slack around the home. A symptom, I suspect, of general all-round unmotivation during that time. I won’t try to speculate on the issue of lost masculinity, though I will say that the fact our normal/prior division of labour – which does inevitably have some degree of gender influence – was not perfect to start with and this wouldn’t have helped.

    Cooking is great, but it doesn’t cancel out cleaning

    Yes, I know we should all settle for nothing less than a complete equal who pulls their weight and more around the house without being asked. (And no, it’s not always the dudes who are slacking, but a) it truly often is and b) I like alliteration.)

    But I’m gonna be honest. That was not my reality.

    In our case, he’s the much better cook. I probably produce one ‘wow’ meal in a decade, where he knocks them out on a regular basis with little effort. I’ve always been glad about this because we both get to eat better – and cooking is a significant part of keeping the house running.

    But when it comes to cleaning? I’m accepting of the fact that I am better at certain cleaning tasks and that my bar for ‘clean’ is actually higher. (When we came back from overseas and were temporarily homeless, we stayed with my parents. Thankfully. I don’t think I could have handled living at the in-laws’ – let’s just say we don’t seem to share the same standards.  It really isn’t just a gender thing in this case, it’s more so that we come from families with very different habits. However, I’m not okay with doing all the cleaning, for obvious reasons.

    It was quite some time ago that I first read this Modern Love piece in which the author basically uses animal training techniques on her husband. (It worked – and apparently he eventually even began to use them back on her.)

    How patronising, I thought. And how frustrating. The basics are so obvious.

    And yet. I hate to say it, but maybe there’s some truth to it. I’ve found myself trying some of these tactics in the past, and I gotta say, the results were pleasing. Carrot over the stick, any day. (Gadgets also help, in this case. And I now know that steam mops can also be used to clean the shower. #lifeprotip.)

    That said, making the effort to thank each other for the little things on a day to day basis goes both ways. It’s something we both do regularly now and appreciate each other more for it. Particularly now there are two dogs in the picture (must update you guys on that!) who can be a handful, as well as the chickens and a yard to look after.

    For a relationship with less history, I doubt I would have bothered. If I was single today, I would be looking for a fully fledged adult, no exceptions.

    Mothering the manchild

    I can’t believe I’m about to type this and I’m sure I’ll get some grief in the comments. But more than one woman I’ve chatted to recently has voiced the idea that sometimes we almost have to treat them like children, which I’ve found myself nodding along to… Again, ridiculous, and I know this isn’t everyone’s experience, but it isn’t an isolated one. I came at it from the Modern Love animal training perspective, but I suppose the same holds true for training kids.

    FWIW, in these cases the women were either the same age or a little older than the men. Maybe there’s real truth to the differing rates of maturity. How often we wind up in mothering roles just as much as partnership roles. Much as I hate the term ‘manchild’, it exists for a reason; I am honestly noticing too many real-life examples around me of late.

    I really do think everyone should live on their own before living with a partner. Going straight from the family home to cohabiting seems to be a common factor in this issue. We got together young and while I’d lived on my own for a bit, he never had. I have a natural tendency to step in and handle things that need doing when they don’t seem to get done.

    The trouble is, once you’ve set a default and fallen into a pattern, breaking it is difficult. When you’re good at something it’s easy to get stuck doing it all the time. I had a real moment recently when he mused out loud about how stressful it is managing money and how naive he was – how much I actually used to shoulder when I did everything financial for both of us.

    Communicating my needs clearly is something I’ve been working on. I live very much in my own head. Introverts often have a rich inner world and countless thoughts that don’t actually see the light of day. I’ve been trying to be more conscious lately about explicitly communicating the important stuff and making sure it gets through and isn’t just locked away inside my brain, or lost in translation.

    Finding a balance

    I would love to have perfect income equality and household division of labour equality. Realistically getting to 50/50 in the former is unlikely, but the latter? I’m firm in the belief that a workable and equitable system is possible and necessary so that neither party (generally, me) gets the short end of the stick.

    The general weekly routine feels reasonably painless these days, more so than it used to. The house will never stay clean for as long as I’d like (things fall apart by the middle of the week, and that’s only with adults and dogs, no kids!). And if, months on, he insists on leaving things of his out lying around that invariably get chewed by the dogs, well, that’s not my problem. But it’s a meeting in the middle.

    Sports season does mean time crunches, and next season I anticipate outsourcing grocery shopping/food delivery from time to time if needed. Also, at some point in the future I think it would pay for us to get a semi-regular cleaner in to outsource a bit of the load – that was always part of my homeowning vision.

    With things having settled onto more of an even keel, I’m keenly aware of the need for balance and fairness. Winding up in a situation where I am doing all/most of the earning AND most of the chores is not an option. That is one statistical category I ain’t falling back into.

    TLDR: I think back to certain periods in the past and how much tension the division of labour caused, and wince. It’s taken time to reach a better balance, but it’s so worth it. Seriously, it shouldn’t be this hard, and yet it’s still an issue in many households.

  • Link love (the viral edition)

    Link love NZ Muse

    I’ve been struggling with whatever heinous virus seems to be doing the rounds lately. All I can say is, good thing we have a pretty well stocked kitchen this week, with lots of soup! Otherwise I’d have been dropping money left right and centre on easy comfort food.

    This week’s links

    You’re allowed to be wealthy. You’re allowed to like money. You’re allowed to want more money.

    I should be able to do money but I can’t

    Scary things people say about money

    Some things in life you can’t get for free

    A sensible hot take on poverty

    How to face your financial fears

    Can’t find a mentor? Look to your peers

    Striving for compassion in a world of judgement

  • Why millennials need to save for retirement

    Why millennials need to save for retirementIt’s safe to say I never really gave retirement very much thought at all until this year.

    But now that I’m not deathly worried about bouncing from cold damp rental to cold damp rental for the rest of my life, I can focus on other things.

    Also, some of the things work has sucked me into lately are all about retirement savings and planning for the future. Heavy shit, in other words.

    All around the world countries are struggling with the affordability of supporting retirees.

    In the future we probably won’t be able to rely on superannuation, and will probably have to pay more of our own living costs and health costs.

    Currently NZ has low levels of elder poverty – our  high levels of home ownership, and NZ Super being universal, non-means-tested, and pegged to 66% of the average wage play a role in that. But soaring house prices mean home ownership levels are falling, and I can’t imagine NZ Super will be immune to the kinds of pension reforms that are underway around the world.

    Seeing and hearing some of the things people say on this subject makes me shake my head.

    I can understand indifference and inertia. I know it feels hopeless. You need to save so much for retirement and it seems like your money isn’t going very far. Hell, I know *I* should really be saving more. But something is better than nothing.

    What I don’t understand is all the ignorance and paranoia out there around KiwiSaver. Seriously. 1) Take the free money, the rest of us are! 2) Your KiwiSaver funds belong to you, not the government. Let go of those tinfoil hats, people.

    Save for the futures, dudes. It’s one thing to pay for the less fortunate – the non-able, whose who don’t earn a living wage – those who aren’t able to take care of themselves. It’s another (and kinda immoral IMO) thing to be a drain on the system because you simply didn’t plan ahead.

    As soon as you can, get started. Even if you start small, you can always ramp it up. Every little bit helps. Time, at least, is on our side. Just do it.

  • Link love (the fragility edition)

    NZMuse - Link love roundup with awesome reads from the week

    This week has me questioning the fragility of everything. Physical health. Mental health. Careers. Relationships. Life itself.

    I’ve been left reeling, in particular, by the passing of someone I know, not very well, but who was one of the Good Ones. Universally liked. A net contributor to the world. The unsalubrious circumstances of his death, however, may overshadow everything else. It’s heartbreaking and so hard to come to terms with.

    More links

    Coulda woulda shoulda been a property investor

    Avoiding trendy spending traps

    3 crucial skills for life

    A PF blogger who can’t PF

    How to avoid buyer’s remorse

    What it really means to do what you love

    Is early retirement a lie?

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  • When She Makes More: 3 outtakes from this breadwinner

    When she makes more - the reality of being a female breadwinner

    I put off reading When She Makes More by Farnoosh Torabi until now, because of the criticism I’d heard about this book: patronising, sexist, heavy-handed on the stereotypes.

    There’s some truth to those points, but you know what? I loved this book. LOVED it. I felt so much less alone reading When She Makes More and honestly, I wish I’d read it earlier when I was really in a bad place. I just devoured all of the stories of the couples she interviewed. It was incredibly validating, and that for me was the real value in When She Makes More – just knowing that others out there totally got it, went through similar experiences, and recognise that it IS hard.

    While I didn’t come away with any groundbreaking insights or practical tips, I appreciated what I got out of When She Makes More. Based off the pages I nodded at/bookmarked the most, here are the key points that most resonated with me.

     

    Who we are

    Of course there are thriving couples out there with female breadwinners, and that’s not really who this book is for. It’s more likely for those of us who fall into the category defined by the divorce lawyer Torabi quotes in one of the chapters: the husband who sort of has a job but isn’t trying very hard to generate more income, or is self-employed but not really working.

    Why it’s different for women

    The stress we feel as primary income generators is just not the same.

    We live longer. Any financial decisions need to factor this in – how might they affect the stability of your future if you outlive him?

    It’d be remiss not to mention the gender pay gap in here, too. Our earnings underpin everything. Yet on average we tend to earn lower incomes than our male equivalents.

    If you’re not planning on kids, this isn’t so applicable – but the question of starting a family is where it really starts to get complicated.

    If the household is dependent on your income, then there isn’t even a hypothetical choice about whether to scale back or stop work. Plus, that’s assuming everything goes smoothly. What if you have health complications during pregnancy or after birth – or the baby does? And what if you want to take a longer maternity leave than normal? What if your mindset totally shifts after birth and you decide you want to be primary caregiver? There are so many unknowns.

    Obviously, the ideal would be if both partners earned an income that was individually sufficient to support the household. If that’s not the case then there may need to be some serious conversations and forward planning – whether that means working toward a plan where he can bring in more income, or something else that works for the couple.

    In many of the couples cited, the woman had a seriously high powered, high paying C-suite job, and presumably this was less of a concern than in couples where the woman earned more but not necessarily a huge salary. At a high enough income you’d at least be able to bank a lot to hedge against those hypotheticals.

    Torabi writes that female breadwinners with a dependent family are living in a high stakes world – it’s vital to remain sought after in your work, to learn to navigate the biases and double standards at play, and build the reputation and professional capital that will serve you well later on.

    Another point that probably belongs in here: the so-called second shift. Even when the woman makes more, even if the man doesn’t work, she almost always puts in a significant amount of housework/childcare. Even when the financial roles are reversed, the roles at home do not typically fully reverse.

    The risks of being a female breadwinner

    Resentment, resentment, resentment. Particularly when paired with the point above re: equality of housework. Resentment is the most dangerous feeling of all, particularly when it leads to wondering if you’re better off without him. (And maybe in some cases you are. It wasn’t until I actually left that he bucked up and started to get his act together.)

    “The longer the woman has to support her lackadaisical husband, the quicker her feelings of frustration move into the bitter zone, after which the resentment takes over,” Torabi writes. It’s common for breadwinning mothers especially to feel at least some resentment, guilt and anger.

    Female breadwinners are more likely to be unhappy, feel pressured to work less and even get divorced, she says. There’s the pressure to keep your job, the worry of having everything depend on you, and the desire to have an equal relationship with your partner.

    Let’s face it, this permeates every facet of a relationship. When we talk about money, Torabi points out, we’re actually talking about our entire lives. Money affects how each of you feels about one another and about your relationship – and it also directly influences the frequency of and satisfaction with your sex life. (Can confirm. Broke sex is bad sex.)

    If the guy has made financial mistakes in the past and is yet to prove he can be financially responsible, it can be difficult to trust him. Often it leads to mothering and controlling in an effort to remedy that, which sucks for both parties. I never liked being the mean/boring one saying no – we can’t afford that – or assuming responsibility for handling all the finances, or feeling unable to rely on anyone but myself. When a partnership turns more into something resembling parenting, it’s a bad sign.

    Often couples that struggle the most are those whose incomes were fairly equal until he lost his job. But whatever the cause, what matters is how we cope in response. And figuring that out takes time. Financial and emotional equanimity are moving targets in any relationship, Torabi says, and this is so true in my experience. Ultimately, it’s a process.  




    One last point I liked in the book and would love to see play out: the suggestion for a shift in the campaign for paid parental leave that puts the focus on the benefits for families. How could anyone be against working families?

    But ultimately, the biggest strength of When She Makes More is that it’s not too concerned with how things should be; it’s about how they are in reality, and how to cope with that. Yes, things should be perfectly equal at work and at home. It shouldn’t matter who makes more, practically or emotionally speaking. BUT. We live in an imperfect world and we as humans are flawed – we just have to work within these constraints the best we can.


     

  • 7 reflections on money and financial resilience

    doors

    This month I was at the latest OECD conference on financial education, bringing together attendees from nearly 50 countries from around the world.

    I jotted down various random points but I wanted to put down in a post some of the thoughts I came away with – some new, some simply reinforcing.

    5 new things

    So glad KiwiSaver is as simple as it is: administered centrally, goes along with you even if you change employer. It would be great if there were tax incentives and if provider fees came down but overall it could be worse.

    Economic anthropologists are a thing?! If I was more academic, this would totally be an ideal career path.

    Designing financial products for people in a variety of situations is so crucial. I’ve read a lot about apps like Digit but always from the perspective of bloggers trying to hack savings, essentially. But it was raised here as an example of tech that can be used by people with unstable incomes to save when they do have money, but not force it when they don’t.

    Financial resilience: I really liked these four indicators of financial resilience. 1) Control over your day to day finances. 2) Being on track to meet your financial goals. 3) The ability to cope with financial shocks. 4) The freedom to take advantage of opportunities and make choices to enjoy life. Speaks to me.

    The notion of retiring with dignity: Look, wealth is not just about money. But we will all need money to get by when we stop working. The non financial aspects of wealth will absolutely help make retirement enjoyable but without sufficient funds to cover the basics of living, retiring won’t be much fun at all. I know I want more than just ‘getting by’; I want choices. Working toward a dignified retirement is something I can get behind.

    2 reminders

    Job and income volatility is a killer for financial security. Between that and other systemic factors like stagnant wages and rising costs, the gig economy and the rise of automation, things really are different for this generation. The benefits of certain trends are borne by certain parts of society but the costs are typically borne by others.

    Obvious but something those not on the frontline of financial education/literacy sometimes lose sight of: how hard it is to save when there isn’t much money and life is chaotic. For those in real hardship it’s about triaging the now in order to get to ‘later’. To do otherwise is like swinging a baseball bat while standing in a canoe. At that stage, retirement is the Ferrari of the savings world.