I Wish I Started Sooner

Everyone has a wishing well. On the surface floats our dreams, goals and aspirations but deeper down where the water starts to get a little murky, linger one or two regrets.

Every wishing well is an amalgam of our past and future.

One of the biggest regrets I see in a lot of clients is they wished they started sooner. Most wished they bought a house sooner, paid off their mortgage sooner, or began planning their retirement sooner.

Then deeper down, some wish they started a family sooner, found that special someone sooner, or just said sorry sooner.

Everyone has their own list.

Very few are ahead of the game and knocking it out of the park with ease.

Here’s why…

The Pig and The Python
Every family looks like a python trying to swallow a pig. It generally goes through three stages:

The twenties – early in the relationship, some couples may be lucky enough to purchase their first home. They work like crazy to get on top of their mortgage before starting a family. For those renting, they peddle like fury trying to save for a deposit.

The thirties – by this stage most couples have started a family which means upgrading to a bigger home and a mortgage they can hardly jump over. And as the children grow their needs increase which means more expenses. The python is really feeling the squeeze and for those renting, the dream feels like its slipping away.

The forties – the kids have now started secondary school and the family’s expenses continue to grow on top of a mortgage which never seems to shrink. At this point, very few families have little if any surplus income. For most, it’s a hand to mouth existence. The python now feels like it’s about to choke on the pig.

On average, most family’s spending peak when Mum and Dad reach age 46. Give or take a few years.

A Slow Digestion
In most cases, at least one parent stays at home to help rear the kids and do all the unpaid work.

For those who return to work and put the kids in daycare, their income just gets sucked up in fees. The only value for them returning to work is to hold their place on the corporate ladder and not slip backwards. Either way, the pig take a long time to digest.

Therefore, it’s not until most couples reach their fifties and their expenses begin to decline that they have a few dollars spare and begin some sort of retirement plan.

Of course, all this assumes no major setbacks along the way such as a divorce, illness, or prolonged unemployment.

The good news is, you can achieve a lot in 10 years with some spare cash and a decent retirement plan.

A Fast Digestion
For those who digest the pig quickly, you can bet they have either sacrificed family life or remained in a career they hated, but pays well. Their bank account may be alive and well but spiritually, they feel dead inside.

Their wishing well is usually littered with the most regrets, it’s just that you can’t see them through the murky water…or the facade.

In my opinion, the most pain is created when people compare their worst with other people’s best. Especially around money and family.

No one’s life is one, long, perfectly straight line.

And if you could see the end point, would you have started sooner anyway?

Probably not.

Have a great weekend!

Adam

p.s. I hope to have some info on franking credits very shortly. The fact that it’s very hard to get an accurate read on how everyone will be affected speaks volumes. But I do know this…if Bill Shorten was spruiking how much he was going to spend on ‘schools and hospitals’, the picture would be very clear.