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Welcome to another edition of #AusFIWeekly. You’ll find great handpicked Financial Independence links from Australia and abroad – brought to you by Michelle, a mid-30s semi-retiree sharing my FI adventures at FrugalityandFreedom.com.
As the end of Australia’s financial year approaches, I’ve been reviewing my superannuation goals. While I’ll achieve financial independence and make work optional long before traditional retirement age, superannuation will play an important role in looking after Old Lady Michelle so I’m keen to optimise it while I can.
I’m using superannuation to complement my FI(RE) plans by:
- Bpaying $1,000 as a voluntary contribution each year I earn under $54k. This way, I get a boost of up to $500 as government co-contribution for low to middle-income earners. I deposit $85 per month to my super fund to make it easier, and the co-contribution is added automatically after that tax year. Free money! Login to your super fund to find their Bpay details.
- As a new freelancer this year, I’m making sure to put away 10% of my income into superannuation for the tax deduction. When I was an employee, I would also salary sacrifice a small amount to get the tax benefits, while continuing to invest outside super towards FI too. Chat to your HR or payroll department to get this set up.
- I may decide to use these extra super contributions for a house deposit one day under the First Home Super Saver Scheme. This offers a tax-advantaged way to save and grow a small deposit, up to $30k (soon to be $50k under new rules). While I can’t see myself being a homeowner anytime soon by choice, I always prefer to build up my options in case my preferences change over time.
How are you using superannuation in your FI(RE) plans in Australia? Hit reply and let me know.
Australian Links
Late Starter to FIRE Action Plan – LatestarterFIRE
“Are you in your 40s or 50s? Just discovered FIRE and wondering if you are too old to start your journey? Are you feeling overwhelmed? What if there is a framework, an Action Plan to guide you every step of the way?”
Pay Extra On The Mortgage or Invest In Shares – Sustainable Living
“Whilst there is an easy mathematical answer, you first need to know your financial goals and take into account your feelings. Sounds weird, right? To take into account your feelings when talking money? But it’s actually very important because you want to be able to sleep well at night.”
10 Things To Be Rich In Other Than Money – FIRE Your Own Way
“While you’re growing your wealth money-wise, don’t forget there’s other ways you can be rich in too. And the best part is, you can start working on these anytime – you don’t have to wait until you hit your legendary FIRE number. You can take steps to make your life richer in these things at any time.”
Why Younger People Should Also Consider an Estate Plan – The FIREnance Guy
“Drawing up an estate plan is not just about distributing assets when a person dies but it is also about making decisions if the person is seriously injured, such as in a car accident and no longer has the capacity to think independently any more.”
International Links
The Create to Consume Ratio – Happily Disengaged (USA)
“For me, I’m happiest when the ratio is a minimum of 60/40, Create to Consume ratio. Creating has to be a majority of my existence for me to feel satisfied and content. I’d like to believe that it’s that way for most people too.”
The Slog – T on FIRE (Canada)
“Languishing is a sense of stagnation and emptiness. It feels as if you’re muddling through your days, looking at your life through a foggy windshield… So what do we do about the slog?”
A Love Letter to the FIRE Movement – We Want Guac (USA)
“…the FIRE movement gave me a better home, got me a better job, grew my wealth to six figures, kept my spending under control, lowered my anxiety, fixed my diet, and cleared my skin. Whew.”
Are You Emotionally Ready to Retire? Eight Questions to Ask Yourself – Maryanne Vandervelde, Wall Street Journal (USA)
“‘Am I ready?’ is an emotional journey into yourself, as well as an assessment of your situation. There will be no perfect decision, but you’ll fare better if you consider all of the options carefully… It can be the best time ever—time to learn a lot about ourself, finally ‘growing whole’ in so many ways. Are you ready for that?”
Missed one? Read the archives here. Or get in touch if you have any FI content recommendations.
Yours in pursuit of FI,
Michelle @ Frugality and Freedom
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