Financial Autonomy

Today I am joined by Sharon Gourlay from Digital Nomad Wannabe about how to gain financial independence through Blogging. Sharon Gourlay is passionate about working online and helping others to follow in her footsteps. She left Australia with her young family at the end of 2014 determined to grow an online business. She succeeded and now supports her family of 5 to live their dream lifestyle. In this interview we cover: Her blogging journey from a hobby to a full time blogging business How she was able to sell her travel blog, even with her name on it Whether it is still viable to have an online business now or is it too crowded The difference between a hobby blog and having a financially successful blog How to get started with a blogging strategy Traffic generation strategies she now focuses on to build successful niche and authority  sites How affiliate marketing works Key skills when starting out to be a commercially successful blogger The importance of treating your blog like a business The small inves

Are you tired of the insecurity that comes from constant corporate restructures and the politics of a large work place?  Way back in episode 11, I explored the Security Illusion. This looked at the idea that most of us are brainwashed into believing that financial security comes from working for a large corporate, or perhaps even a government body. In reality, these organisations are constantly the subject of restructures and redundancies. They are pyramids, with fewer and fewer roles the closer you get to the top, so people need to be constantly shed to make room for those below to progress. So this post is for those who have reached the point of thinking about life beyond the corporate world, and what they see in their future is some form of self-employment. I’m particularly excited to explore this topic, because this is a path that I’ve walked, and I know it’s been the experience of many in the Financial Autonomy community too. So as I mentioned, transitioning from the corporate world to self-employment h

Regular listeners and readers know by now that Financial Autonomy is about gaining choice. Maybe that choice is retiring early (eg. the FIRE goal that’s popular in the US), but it could just as easily be the choice to work in a different career, start your own business, work fewer hours or days, or the choice to take a job closer to home, even though that means taking a paying cut. So whatever your Financial Autonomy goals is, what are the common strategy options that you could use to make progress from where you are today, to where you want to be in the future? I should mention at the outset that there's no need to take mental or physical notes, you can grab that checklist by clicking on the image below. If you are to gain choice in life, a prerequisite is that you not be under financial stress. The more easily you can meet your and your families living costs, the more options you have. 1  Pay down debt A good strategy option to start with is to pay down debt, and avoid most new debt. Start with your most e

Whether you’re planning for a traditional retirement at age 60+, or working towards an early retirement goal, thoughts of “will my money run out?” will no doubt have crossed your mind. There is a lot written about safe withdrawal rates. This refers to the rate you can afford to draw down on your savings, so that there’s no risk of your savings being depleted during your life time. The most common rule of thumb guide here is 4%, and that’s certainly a useful starting point. The answer for you though will depend on how you invest your savings, and also at what age you retire. So for instance if you retire at 75, you could probably draw at 8% per year and face no real prospect of your money running out before you do. Whereas someone hoping to retire at 45 would need to be much more conservative with the draw down rate. Similarly, if your preference is to invest very conservatively, mostly in cash and term deposits for instance, then your safe drawdown rate might need to be 2% for instance. But today’s post isn’t

Today we have two interviews for the price-of-1 with sisters Tracey and Joanne from Sistermixin.  Their online business is about educating everyone (especially their own families) on exactly what they are eating, what is in your food and some of the harmful effects this can have on your health. And they have become sought after thought-leaders in living an additive-free lifestyle.   In this interview we cover: Why they started The Whole Circle podcast and how they now repurpose the content into their blog posts The impact over 100 podcasts episodes has had on their business and how it has positioned them as thought leaders in the additive-free industry How Sistermixin got started and its growth journey to now employing three family members as well as additional staff in their warehouse and offshore. The different income streams generated from their online business The importance of reinvesting any profits and revenue you have when starting out How they have built their business up without any capital invest

The goal for many in the Financial Autonomy community is to retire early. Early retirement means different things to different people, but as I always talk about, Financial Autonomy is about gaining choice. So whether you’re early retirement consists of lying on the beach in Fiji at age 40, or traveling around Australia with your caravan when you’re 55 and picking up odd jobs as they crop up, this post is for you. I haven’t gone into a tonne of detail on any of these 6 ideas, because to my mind, a hack means a short cut, and so that’s what I’m delivering here today. 1.  Work out your expenses Start by determining what you spend now. The banks are coming up with good tools to help you in this area. There’s also a good tool at the MoneySmart web site. Once you’ve figured that out, create a second version with what you would expect that to become once you retire. Will you travel more? Will you go down to one car in the household. Perhaps the kids will be off your hands and so food costs will decline. Maybe you’

Research from the Australian Stock Exchange found that in 2014, 36% of adult Australians owned investments listed on the share market. Combined results from RP Data and Census data found 7.9% of the Australian population own an investment property. Now there would be some cross-over here with people holding both shares and investment property, but we can safely conclude that at least 55% of the adult Australian population holds no investments outside of their superannuation. Click here to download the toolkit Back in episode 27 we explored what was required to achieve financial independence. In a nut shell, determining what your living costs are for the lifestyle that you want, and then finding a way to generate that sum of money each year is the solution. So let’s say you’ve done your numbers, and you know that for you to achieve financial independence, to gain the choice that is the goal of Financial Autonomy, you require X dollars per year. How do you then go about generating that? Now of course regular

Today we chat with Co-founder and consultant with Tara Lucke from View Legal about the importance of Estate planning. Though it is not something we like to talk about, it is so important for protecting your assets and loved ones, no matter what stage of life you are at. In this interview we cover: Making sure your hard earned money goes to the right place with a good estate plan What happens to your money if you don't have an estate plan Why you need consider having a Power of Attorney no matter what your age Why you may have more assets than you think How to avoid lawyers taking advantage of your estate The two important factors to consider in your estate planning once you have children Case studies of poor estate planning situations The problem of the "I love you" wills Why you need to consider Testamentary Trusts as part of your estate planning for asset protection and tax benefits The different roles of the Power of Attorney Conversations you need to have with family members Considerations for estate pla

We all know that property prices in Australia have gone stupid in recent years.  One significant consequence of that has been that first home buyers have found it increasingly difficult to enter the property market.  Banks like to see at least a 10% deposit, and in the ideal world you’d have a 20% deposit to avoid mortgage insurance costs.  But when a first home can often cost north of half a million dollars, saving a deposit of that size can be really challenging, especially if you have rent to pay, and perhaps a HECS-HELP debt that sucks away a portion of your income. Fortunately there has been recognition of this problem by both sides of politics, and the solution that has been legislated in recent months is the First Home Super Saver Scheme. So what is it, and should the First Home Super Saver Scheme be on your radar as a strategy to enter the housing market?  In short, should you care about this new initiative? Click here to get the toolkit  It’s always good to start at the beginning, so before we dive i

Networking marketing has changed since the days of Tupperware and Amway.  Today I am joined by Lloyd Ross who talks through how our online behaviours and advances in technology have revolutionised the world of network marketing, making it an easier side hustle than ever before.  In this episode we cover: What network marketing is and why you need to consider this as a viable side hustle How social media has evolved the industry The skills and attributes to be a successful network marketer The ease of getting started with just a few hundred dollars How to fit in a Hour of Power for your side hustle while working full time The evolution of network marketing due to changes in shopping habits, technology and online networking How to find a product and company that aligns with you and your values Links mentioned in this Episode Lloyd on Facebook Lloyd on Linkedin Lloyd on Instagram  

The goal when working towards Financial Autonomy is to gain choice.  Choice in how you support yourself and perhaps your family financially, be that the type of work you do, the hours you spend doing that work, or whether you earn that income as an employee, or as a self-employed person. In developing an actionable plan to get you from where you are now, to your Financial Autonomy position, there are several foundational elements that you need to decide upon.  Perhaps the most fundamental of these is how much income do you need to generate to support your lifestyle?  What is your number? In today’s episode, we’ll be exploring how you might go about determining what your number is.  And with this nailed down, consider what’s next in your Financial Autonomy planning. So you’ve recognised that the standard working life treadmill is not for you and you’ve decided to gain choice via a Financial Autonomy strategy. You’ve probably got some ides as to how you could earn income once in Financial Autonomy, and perhaps

In this episode, I talk to Joanna Maxwell all about career change.  Joanna has worked in a wide variety of jobs throughout her career and she helps a lot of other people change careers as well. She's now taken all that experience and recently gained a position with the Australian Human Rights Commission in the Age Discrimination Team. Joanna is the author of the book Rethink Your Career in your 40s, 50s & 60s.  In this episode we cover: Why Joanna has had a such a varied career How her love of travel impacted career choices and led to her interest in career change The challenges of identity with career change  How men & women deal with their sense of identity How Joanna took her interests and satisfy those through her career choices Planning financially when running your own business Finding strategies to create a working life that is sustainable How the book came about and what's included Joanna's tips to make career choices work Links mentioned in this Episode Joanna Maxwell's Website  Joanna on L

Right now you’re listening to this podcast, or reading the blog article. Why? You’re curious, and have a thirst for knowledge.  You want to learn new things.  You want to improve yourself. We usually think of investment as being a financial thing.  But investing in yourself - your skills, knowledge, and health, can be just as important and impactful.  And just like a financial investment, diversification pays. Download the cheat sheet here In past Financial Autonomy episodes we’ve looked at investing in the share market, buying or starting a business, getting debt under control, and various other topics that tend to have dollars and cents as a core element. And whilst the money side of things is unquestionably important in you attaining Financial Autonomy, there are other essential ingredients required for you to achieve success.  Motivation, health, happiness, self-awareness, creativity. There is a lot on the net about self-improvement and investing in yourself – I’ve spent hours reading it to research for t

With Amazon now in Australia, we talk to John Candivish from FBA Frontiers on how to make a side hustle by becoming an Amazon seller. Before starting his Amazon Europe journey, John had zero experience with running an online business. After university, he joined the corporate world in London but rapidly realized that it was not for him. After launching his first Amazon brand in 2014, John was soon able to quit his job to travel the world and network with other successful Amazon sellers from around the globe. Today, he's generating 6 figures of revenue per month from over a dozen products in Europe. John's experience led him to develop a specific, step-by-step system to find success with every product launched. John developed FBA Frontiers because so many sellers he met had great businesses on Amazon.com, but had completely dismissed Europe. He's since made it his mission to help sellers overcome the barriers to entry in the EU and find success by bringing their products into Europe.   In this episode we cov

In the interview I did with Adam Murray in episode 20, he spoke about how he reduced his expenses in a significant way when he worked through his employment transition and gap year.  And you might recall, he found living on less made him more happy, not less. Another key element in your financial independence plan is to have a financial buffer, an emergency fund, to get you through the unexpected.  Perhaps you already have this, but if not, you want to build this up.  Everyone’s needs are different, but you’re likely to need $2,000 to $10,000 in there to make you secure.  This assumes you’ve got appropriate insurances in place. Once you have that emergency fund in place, savings can go towards investment.  We’re not going to get into potential investment strategies in this episode, but the key point here is that the goal is to build up some investments, so that in future they can generate passive income for you, to help cover your expenses.  It might be rental property, shares, or if you’re real risk averse

Following on from Episode 23 on Multi-Phase solutions for Retirement  we are joined today by Shaun Farrugia from Optimised Accounting & Finance to talk all things Trusts. Check out our free download  Multi-Phase solution for Early Retirement In this episode we cover: The dummies guide to what exactly a Trust is How it can work as a funnel and the tax flexibility that it allows The two types of people that generally use Trust structures What are franking credits Three case studies of how Shaun clients are using Trust for tax flexibility Case Studies as mentioned in this episode Scenario 1:  Couple approaching retirement / early retirement.  (Dramatically reduce tax) Distribute investment / business income to a 'bucket company' Allows for tax to be paid at the company tax rate - accrues as franking credits Funds pile up and are invested within the company Upon 'retirement' dividends can be streamed out with franking credits attached Draw down $13,000 each financial year to remain below the tax free thre

Way back in 1996 I bought my first home.  It was a two bedroom flat in a very ugly brown brick building, probably built in the 70’s with nothing done since.  It wasn’t flash but it was within my budget and in a good location close to town – Kew for the Melbournites.  I paid $107,000. Now I know that for those looking to buy their first home, $107,000 is probably pretty sickening right now, but 20 odd years ago that was the going rate. 4 years later and I’d meet my now wife, and it was time to move from a flat to a house.  We were starting to think about having a family.  So I sold the flat for $189,000. Now those straight numbers - $107,000 purchase price, $189,000 sale price, look pretty good right?  And they were.  It equates to 15% per year growth.  I wish I could say that I got that return due to a whole lot of research and planning, but the truth is it was pure luck.  I bought when I could afford to buy, and I sold when I needed to sell. But that 15% does not tell the true picture, and that’s what I want

In this episode we are joined by ICT professional and cryptocurrency expert Ivan Jasenovic, who describes himself as having his head in the cloud, his soul on the Blockchain, and his heart in decentralized Healthcare. In this interview we cover: The benefits of Blockchain technology and whether you truly need to understand how Blockchains The different types of cryptocurrency and examples of when you would look to use each one How bitcoin works and has the same value per unit no matter where you live Whether different cryptocurrency would merge together and their future specialised uses Why reputation is the most valuable thing in this space How cryptocurrency could be used in health and other industries A case studies of Shaun and Jimmy and their experience investing into blockchains How getting hacked increased their blockchain investment The concept of a wallet in the cryptocurrency world How you need to act like ‘the bank of you’ The importance of back-ups and password security How a lost hard drive loca

The goal of early retirement is one many Australians aspire too.  And certainly, when thinking about achieving Financial Autonomy, retiring early is very often baked into those goals. But what is the best way to bring that goal to reality, given the uniqueness of our system – superannuation, franking credits, negative gearing, and means tested Aged Pensions, just to get you started. The approach I’m going to take you through today is a multi-phase approach that I’ve built specifically for the Australian early retirement landscape.  Its aim is to use the opportunities we have, such as franking credits and superannuation, to get you to early retirement as quickly as possible. We’ve actually built a special PDF just for this post. I’ve put all of the diagrams in there for you.  You know what they say – a picture tells a thousand words.  And I certainly think visualising this approach is helpful.  So ideally have that in front of you as you consume this episode, but if that’s not practical, then at least download

In this next interview episode on the Financial Autonomy Podcast we chat to Ruby Lee the founder of The Careers Emporium and head of HR at Cogent. In this interview we cover: The benefits of a side hustle in achieving your financial goals The 18 month journey Ruby when through when changing careers Identifying your strengths and knowing when the time is right for a career change How daily journaling helped Ruby gain clarity when dealing with financial and career issues How she turned a new blog of helping people with their careers into a money making side hustle while on maternity leave Why job seekers are now seeking personal branding help The importance of understanding a position gets made redundant, not the person.  Listen to Ep 2 Redundancy - What a Great Opportunity episode Ruby’s tips for starting a blog and building an online community for your side hustle How she juggles balancing her full time job, being a mother and building a successful side hustle.   How automation and programs such as Hootsui