Don’t let work stress get you down, cash in on a healthy passion
A CAREER change is called for if you can’t stand your job and it is hurting your home life — even if it means giving up a lot of dough, writes Barefoot Investor.
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A CAREER change is called for if you can’t stand your job and it is hurting your home life — even if it means giving up a lot of dough.
SAM ASKS: I feel trapped! I spend my days doing a job that pays me over $400k per year, but I hate it. I’m good at my job so I get away with it, but every day it kills me just a little more. The bigger concern for me is that it is beginning to affect my home life. I am in my mid 40s and I need a change. I have $1.2 million in cash and around $500k in my super account. What should I do? Grateful for your thoughts.
BAREFOOT REPLIES: Wealth gives you a lot of things, but it can’t banish your fears — in fact, sometimes it creates them. You’re an excellent case study: you’re scared about leaving a job you hate, because you don’t want to give up the dough. That’s a waste of your life, and a waste of your skills. Now, you’re obviously a smart dude — morons don’t tend to make four hundred grand a year (unless they play for Collingwood). So what should you do? You should definitely change your career, but not until you’ve found your next adventure. How do you that? Arun Abey, author of How Much Is Enough?, has a thinking exercise called “the three circles” that’ll help you get to the core of what makes you tick (and what gives you a tickle). For the next week, before you go to bed ask yourself these three questions:
1. What am I passionate about? 2. What am I good at? 3. How can I make enough money from it? The truth that they never tell you in the Mercedes dealership is that adding another million bucks to your bank balance won’t make you any happier than you are right now. It’s time for you to get to the centre of your three circles.
LOSS AND HEADACHES
LISA ASKS: Due to tragic circumstances, my son was killed over three years ago, and as a result I received his super. However, the claim process was an ordeal and most upsetting. I was a “non-binding beneficiary” so I had to claim co-dependency. Now I am updating my own will and I am not sure what to do. Can you please explain it to me, and suggest where I can get some help?
BAREFOOT REPLIES: I’m sorry for your loss. I see this all the time: most people don’t understand that your super is separate to your will. Basically, if you don’t specify to your super fund who you want your death benefit to go to, the fund will have the final say. There’s an easy fix though: call your super fund and ask them for a “binding death benefit nomination form”. This allows you to decide who you want your death benefit to go to. It’s valid for three years from the date of signing, so keep it updated.
A THOUGHT FOR DAD
DI WRITES: I just want to thank you for your article on “The Ultimate Father’s Day Present”. That is the best advice ever. I lost my husband (and our children lost their father) two years ago. Even though our children are adult age, your column still made me cry. I just wish they could have sat down with him and asked these questions. Thank you for being so sensible and for appreciating what you have. Let’s hope others appreciate the fathers in their lives. We miss Our Hero very much.
BAREFOOT REPLIES: I got a lot of positive mail about this one, but yours really struck a chord. For those of you who missed it, what I advised for Father’s Day was to sit down with your dad and ask him some basic questions, like, “How did you meet Mum?” and “How would you like to be remembered?” Even though Father’s Day is done and dusted for this year, it’s a great thing to do with your dad at any time. And you’ll always have something to remember him by.
TAKE TIME AND CARE
MANDY AND STEVE ASK: Our house burnt down due to my laptop catching fire. It is a total loss. I want to make sure I make the best decision with the insurance money, but it is overwhelming. Our mortgage is $286k, while our insurance is $280k for the house and $110k for contents. Our options are to rebuild the house (with the insurance company helping us) or to take the money. What should we do?
BAREFOOT REPLIES: I feel for you guys. Hindsight is a wonderful thing, and a few years on from our fire, here’s what I’ve learned: Your insurer is not your friend. They are not there to help you. Their job is to pay out as little as possible. So, read your contents policy slowly. Then read it again. If need be, think about paying an insurance professional to act on your behalf. The second thing I learned is not to rush any major decisions. When it happened to us, all I wanted to do was get back into our house, and get our family back to normal. Yet the truth is that things won’t be normal for two years — at least. That’s your reality. The sooner you accept it, the better long-term decisions you’ll make.
DON’T BANK ON FEAR
CARLA ASKS: My husband and I have $130k owing on our home, which is worth about $500k. We are in our mid 40s and only have around $300k combined in super. We are now thinking of purchasing a house-and-land package for $450k to rent out as an investment (and tax offset), but my mother says “no, pay the house off first”. I feel we have been too conservative with our money, and I am terrified that time is running out. It is time to take action, but what is the best thing to do?
BAREFOOT REPLIES: I agree with your mum. Though that being said, what your mum or I think doesn’t really matter. What matters is that you and your husband decide to behave like grown ups and own your own freaking decisions. Know this: in all the years I’ve been doing this, the people who make financial decisions based on feeling “terrified” or out of fear that “time is running out”, almost always live to regret it.
The Barefoot Investor holds an Australian Financial Services Licence (302081). This is general advice only. It should not replace individual, independent, personal financial advice
Originally published as Don’t let work stress get you down, cash in on a healthy passion
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