My Story

Mid-life mind shift

The last four years contained some testing times for Frances and her family, but confronting what they needed to be happy has brought them closer ...

Frances, 49, is Quality Manager in a client service centre and married to Peter, 51. They have two daughters (24 and 21) who live at home. Frances is the major income-earner. "Peter made a career change a few years ago. The stress of his 25 years as a high school teacher took a toll on his health," she says. After two years in casual work, pondering what to do next, Peter followed his heart and, always an avid reader, now works happily in a bookshop. The decision had a major financial impact. Frances says her husband's pay is barely half of what it was.

"Super is important, we'll use it to provide our 'living money', but it's not our only focus."

Around the same time, Frances switched to a four day working week, reducing her income too. "We managed financially. Peter had built up a good nest egg with his super. We used a chunk of Peter's super to eliminate the mortgage." Still, it hasn't been easy. "The worst part is having a budget for the first time in twenty years. It's an ongoing joke. I had problems budgeting when first married, with one income and two small children, and I still can't do it. I love shopping!"

As if these changes weren't enough, the family decided to sell their newly paid-off home and build another house. "It wasn't the best idea, particularly as Peter's situation was uncertain, but it focused us on a family project. We have another mortgage, but it's relatively small. We'll pay it off in five years."

The couple also used some of Peter's super for a deposit on a house at nearby Riverstone. "Our first foray into investment property is going well. We have a good long term tenant." They'll use the equity in the property to assist their daughters to buy their own properties.

Frances says the reduced stress for her and Peter, the extra time they have as a family, and living in a new home they love, far outweigh the disadvantage of a reduced income. "It was a good wakeup call to confront what we really want from life. We're making it work and we're all much happier."

Frances shudders when thinking about turning 50 next year. "There'll be no big party," she says laughing. "I'm a party giver, not a party receiver."

But she admits the milestone is a good opportunity for her and Peter to plan the next stage of the family finances. "The girls and the house are sorted, now what about us?"

As well as supporting the girls through their studies, Frances says their financial priorities are saving for retirement and having a decent annual holiday. "Every year we go somewhere different in Australia or close by. Once the girls leave home, we'll travel further afield."

She's thankful for Peter's superannuation savings "It gave Peter breathing space when he was unwell, plus we got the investment property and Peter started a share portfolio. And he still has something left in super. Basically, it enabled us to manage major life changes without too much discomfort."

Frances will use salary sacrifice to top up her super. "Super is important, we'll use it to provide 'living money', but it's not our only focus. I also believe in 'bricks and mortar' and Peter loves his shares. We're both cautious investors. Peter invests in blue chip shares and reinvests the dividends, so we get extra shares rather than cash, which I'd just spend on shoes!"

Asked about retirement, Frances says, "I'll have a decent income, a smaller house with less housework, and a holiday house where the grandkids come for holidays to watch granddad make a fool of himself on his bodyboard - while I sneak off shopping whenever I like!"

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