by Justin Hooper

You’d have to be on Mars not to know that we’re experiencing some of the most volatile markets in history. Let’s not kid ourselves…..this is not fun!

Having said that, what are we really concerned about? Why is there so much “panic” and fear around?

I’m not an expert when it comes to emotions but it seems to me that behind the concern that seems to be pervading the stock markets is a fear of losing lifestyle. Most people would be totally relaxed if they could maintain their lifestyle no matter what happened in the market.

Let’s take a look at a real life example of a client who requires $54,000 pa to fund their desired lifestyle:

Pension Account Value as at 10/10/07: $1,142,000
Drawdown over the past 12 months: $ 54,000
Pension Value as at 10/10/08: $ 858,000

In projecting how long the money might last in a meeting 12 months ago, a simple assessment ensued as follows:

Assumptions:

1. Conservative investment return ongoing of 7% pa
2. Cost of living at $54,000 pa indexed at 3% CPI

The projected balance of funds remaining after:

5 Years $1,250,000
10 Years $1,346,000
15 Years $1,415,000

Today (10th October 2008) one year later, the average return required to get that client back to $1,346,000 (“nine” years from now) is 11.67% pa. To get back to $1,415,000 (“fourteen” years from now) is 10.35% pa.

Is this achievable? History says yes. The average return of a model balanced portfolio (25% defensive and 75% growth assets) from 1985 to 30 September 2008 should have been around 11.39% pa. During the 5 years to 31 December 2007, this portfolio should have a return of 13.10% pa.

That’s not to say we shouldn’t do whatever we can to manage our situation. My view is control the “controllables” and don’t worry about the “uncontrollables”.

So what can you control?

1. Diversify

A year ago, International assets, particularly shares didn’t look too good. Fixed Interest funds were also significantly underperforming. In the past 3 moths in particular, they’ve certainly helped overall performance with the unit prices of the global equities funds (in our portfolios) increasing by in excess of 9%. (This is due to the decline in the Australian dollar).

The drop in interest rates has also helped improve the value of the fixed interest assets in the portfolios. Short-term Australian Fixed Interest funds have had a return of 7.80% and the International Fixed Interest has a return of 5.95% for the last 12 months up to 30 September 2008.

Diversification is the one ‘free lunch’ that you get when investing.

2. Eliminate Unnecessary Spending – there’s no harm in “tightening the belt” where it doesn’t affect your lifestyle.

3. Stay in touch with your adviser – you need a framework for making decisions and then an ability to keep your emotions from corroding that framework.

Justin Hooper,CEO, Sentinel Wealth Management, www.sentinelwealth.com.au

by Fiona Cosgrove

I recently read an article from the US about how people could “ride the wave” of potential financial disaster by returning to the “fundamentals” and concentrating on the really important stuff of life.. That got me thinking about what whether in Australia we should be thinking along the same lines and what those fundamentals might be.

Four come to mind.

1. Relationships

In today’s frantic world we believe we are in touch with everyone on a constant basis. Our electronic devices keep us on line and “connected” with colleagues, family and sometimes friends. But is a short sms the same as a meaningful conversation? And have you ever responded to an email and forgotten what you said, or whether in fact you wrote it? Somehow the illusion of connection to people makes us think we have our relationships intact, yet in fact these are often neglected.

Studies have shown that rich, satisfying relationships are the biggest predictor of happiness over anything else (including wealth and satisfying work). In times of hardship, invest time in the people who you care about.

• Attention deficit

When we divide our concentration and deny anyone our full attention, the relationship suffers. When we don’t listen properly or respond and show interest in what is being said, the person we are with feels unheard and unacknowledged. So next time you are talking someone, turn off your phone, your blackberry or computer and give them your full attention. A great tip is to ask a question, then follow it up with a question that arises from their answer. By focusing on other people, we can put aside our worries for the time being and gain the support we need. When we show interest in others, they return that interest in us.

• Chose your company

In times of stress it is important to surround ourselves with positive energy. Work out who makes us feel good and whose company we enjoy the most. You will find that often it is the people who listen and show interest in our lives. Give the same back to them. Some people have a way of “being with you” that does not necessitate a lot of conversation. In the same vein avoid the people who drain you.

2. Focus on what makes life good

• Don’t be scared of emotion

When we are under stress, we tend to block out our feelings and try and stay calm and cool. But refusing to acknowledge the way we feel can create a new set of problems. Negative emotions (such as fear, anger, resentment and loss) have to be recognized and worked through as they are a signal that something is wrong. Finding the cause of such feelings can give us direction to move either towards or away from a situation or to change it if we can. Positive emotions need to be enjoyed and savoured. Joy, excitement, contentment, and love are really what we ultimately strive for. It has been said that man needs a purpose to give his life meaning but without moments of pleasure along the way it is difficult to stay committed to the journey. Emotions lead to motion which leads to motivation. Emotions are the fuel that drives us. Without feelings, we will not prosper. Think about what is most important – material wealth or emotional prosperity? Avoiding strong emotions is not healthy.

3. What gets you out of bed in the morning

• Find your purpose

What do you enjoy doing? What gets you out of bed in the morning? Is it the thought of making more money or the fear of losing it? I doubt that it’s either. Money can be a by-product of working at something we enjoy. There are times when we have to do things we don’t enjoy and during those times it is essential to find outlets in activities that we gain pleasure and meaning from. There are also times when we have to sacrifice the good things in favour of temporary hardship which will lead to greater reward in the future. We will only do this if we have a purpose to work towards. If we make accumulating wealth our sole purpose in life we will have an empty existence. We need a goal that is meaningful but the process of achieving that goal has to be as important as the outcome. If our goals are too distant, we will lose our will to keep going.

• Meaning in each day

We need more than a long term purpose in life, we need a purpose in our lives each day. Work out what activities give you satisfaction, and are in some way connected to your values. Is it spending time with your kids? Walking your dog? Exercising? Doing something good for a neighbour? Gardening, sailing or playing golf? Reading? We all find meaning in different ways. Try and include some activity each day that gives you a sense of fulfillment.

4. Stay in touch with your physical health

• Let your body support you

Everything can be going right in our lives but if we don’t heave good health, we will be unable to enjoy each day. In today’s busy world, many people fall prey to letting their physical health deteriorate as they focus on their mental health or achieving their professional goals. What we forget is that exercise, good nutrition, adequate rest, hydration and relaxation are primarily connected to our overall state of wellbeing. Take stock of where your body is at. Are you carrying extra weight? Is your cardiovascular system getting a work out? Are you providing your body with the right fuel and rest? I believe that good physical health is about as fundamental as you can get. Without it, nothing else will be fully achieved. If reading this section makes you feel uncomfortable do yourself a big favour and get a thorough medical check up then take steps to change your lifestyle to give your body the best chance of keeping up with the demands of a complex and sometimes challenging life.

In troubled times, stepping back and reflecting on what is fundamental to our happiness is a worthwhile activity.

Fiona Cosgrove has over 20 years experience in the wellness & fitness industry - owning and managing clubs in Australia and Asia, including No 1 Martin Place, NSW Fitness Centre of the Year, 2006. Fiona is the author of Coach Yourself to Wellness and she regularly runs corporate seminars and workshops in the areas of healthy lifestyle, motivation and wellness.

by Nicki Bourlioufas

First, pain at the pump. Now, pain at the checkout. The sharp rise in food prices means we’re now paying close to $5 for a loaf of bread or a litre of yoghurt – it seems that even shopping for basics is a sore point. So what’s to be done about it?

Over the year to June quarter 2008, food prices rose by an average 3.9%. But the prices of some staple goods jumped by a lot more. For example, milk (up 12.1%), cheese (up 14.2%), poultry (up 11%), and bread (up 6.8%).

The following tips can help to keep your grocery bill down.

1. Shop with the seasons. Eat only fruits and vegetables that are in season. You’ll save – and enjoy the freshest produce available rather than something that has been sitting in cold storage for weeks or flown thousands of miles across the world (or both). Whether it’s a summer mango or winter broccoli, you’ll be better off all round.

If you don’t believe us, check the Australian Bureau of Statistics (ABS) data for that same June quarter. While food prices were up overall, fruit and vegetable prices fell sharply, down by 7.4% and 6.5% respectively. Apples, bananas, pears and oranges fell in price due to plentiful supply. Lettuce, broccoli, cauliflower and pumpkin prices also fell as those foods came into season.

2. Cut waste. Before you head to the checkout, ask if you’re likely to eat everything in your trolley. If in doubt, put it back. A UK study released in May this year found the average UK household (without children) throws away £420 worth of food each year (equal to almost $AU1000 ) – or roughly a third of all food it buys. Australian households throw away a similar amount. Cut waste and you can cut food costs.

3. Create a grocery list and stick to it. Before you go shopping, plan what you need. Put down all the items that you really need on a shopping list and stick to it. If you steer away from the list, you risk buying food that will simply sit at the back of your fridge until you throw it away.

4. Eat in. The average US family spends 42% of its annual food budget on meals outside the home, and Aussie families are similar. Instead of going out, why not stay at home, make dinner – and save. Raid the cupboards, your fridge and your imagination to come up with tasty, healthy meals. Cutting out $40 on takeaway each week, you’ll save more than $160 a month.

5. Pack your lunch. Instead of spending $6 or more a day on weekday lunches, brown-bag it. Take sandwiches and fruit or leftovers. With monthly savings approaching $120, what greater incentive do you need (other than tastier, healthier home-made lunches to look forward to)?

6. Choose goods at the lowest price per unit. Some stores display the price per unit of products or you can work it out yourself (e.g. by calculating the price per 100g or 100mL). For raw products like sugar, flour, butter, milk, pasta or salt, generic brands can provide great savings. With such foods, you don’t lose in quality but can gain substantially in savings. Otherwise, buy goods on sale – but only if you’d use them anyway.

7. Shop late in the day. Prices of produce and other perishables (such as bakery goods, hot chickens and other pre-prepared foods) are often slashed at the end of the day at fresh food markets and even supermarket and other grocery outlets as the vendors try to sell goods that are perfectly fine – but may be difficult to sell the next day. So tote your trolley just before closing time and save.

8. Hunt mark-downs and specials. Meat that’s heading for its use-by date is often marked down – and it’s perfectly safe for quick use or freezing. The same can be said of other fresh produce and baked goods, so keep an eye out and buy up. Similarly, check the ads and catalogues for specials and add these (if they’re essentials) to your list. Then buy in bulk, save – and avoid shopping later.

9. Move out of your comfort zone. Shop in areas favoured by a variety of different ethnic groups and you’ll be amazed by just how much cheaper groceries are. Whether its local fruit and vegetable shops or butchers, you’ll likely find much cheaper prices, a whole variety of foods to explore – and often fresher goods because of higher turnover.

10. Eat raw goods and fresh foods. Remember that while packaged and prepared or processed foods may seem cheaper and easier, they’re often both more expensive and less healthy than some simple, honest alternatives. Focus on healthy staples like beans, lentils and pasta. Lentil soup in winter or pasta with tomato and basil in summer make for great eating and good health.

Where to find out more

Visit these websites devoted to helping to cut food costs: the wikihow site at Save Money on Food and www.lovefoodhatewaste.com

This is article is courtesy of Super Living. Live and invest with attitude

By Morris Kaplan

As we all know (or should), it takes a disciplined mind and a methodical person, to force oneself to undergo a thorough annual medical check-up. Particularly when you’re feeling absolutely fine. But with debt, the situation can be akin to the hidden cancer. Sinking into debt begins slowly, but it quickly can in serious consequences. The problem usually starts when a person falls behind in monthly payments, or when he or she manages to make the minimum payment due on a credit card but isn’t able to pay anything toward the principal on the loan or bill. Little by little, the debtor begins to drown in unpaid bills. He or she gets dunning notices and phone calls from creditors.

The consequences of bad debt begin to take their toll – anxiety, worry and intimidation; the debt spiral begins; black marks appear on the debtor’s credit record, and potentially the worst outcome – failing to have unused credit lines for emergencies.

You may walk away, but it has been my experience that you can’t hide from creditors. In fact, “walking away” is probably your worst option for handling a debt problem.  Even employment prospects can be affected by poor behaviour around debt. Many employers check credit reports before making hiring or promotion decisions. A negative mark on your credit report, issued by your creditor for nonpayment, will raise questions and concerns that may result in you being a less-attractive employee.

Even before a default notice is issued, late payments on for example credit cards can result in after shocks. Many credit card issuers have a penalty interest rate of 25 percent to 30 percent, once late penalty fees are added and interest remains unpaid. If you were reluctant to open your credit card statement before your statement will start to look even more unappealing. Your credit score will potentially drop, and a lower credit score means new loans and credit will cost you more.

Be sure also that those outstanding debts will be pursued. Today with advances in technology, debt collection has become far more sophisticated than yesteryear. Even the unpaid $50 mobile phone account form an earlier service provider may end up being turned over to collectors, lawyers or be sold to professional debt buyers. Interest will accrue and fees will be charged. Your phone will begin to ring more often and you will never want to talk with the person on the other end of the phone. Although the ACCC and ASIC protects you from abusive collectors, it does not prevent legitimate collection procedures, which, even within the law, can ruin an otherwise nice day.

If you can answer yes to any of the following questions, you could be facing a credit health emergency.

Have you:
1. Argued with your spouse or partner over bills?
2. Increased the percentage of your income being used to pay off debts?
3. Approached or reached your credit limits?
4. Paid only the minimum on revolving accounts?
5. Been chronically late in paying bills?
6. Borrowed to pay for items you used to pay for with cash?
7. Put off medical or dental visits for financial reasons?
8. Reached a point where losing your job would place you in immediate financial difficulty?
9. Been threatened with repossession of your car or credit cards or with other legal action?
10. Avoided calculating your total debt and are afraid to add it up?

A better idea than walking away from your obligation would be to get some help working out things with your creditors. If communications are breaking down, contacting a reputable credit counseling agency may help you come to terms with your creditors and determine the best course of action given your specific financial situation. If all else fails, you may want to get some legal advice to deal with your problem. Walking away will not solve your problems, quite simply because your creditors won’t let you.

Morris Kaplan is an Author and Business Journalist. He is the author of ‘Five Years to Financial Freedom’ and ‘Financial Freedom for your Business’.

by Justin Hooper

Over the past few years, South Africa has been going through many other challenges besides the stock market. One of these is that power (i.e. electricity) has become limited, something that we in Australia may find hard to comprehend. In simple terms, there is just not enough power to go around and a system of power sharing has resulted. Suburbs are cut off at periodic intervals resulting in “blackouts”.

Many of the people are unhappy about this inconvenience and frequently complain about the “incompetence” and lack of planning of the government.

There have however been some interesting and positive repercussions. First, families now enjoy each other’s company more when TV is just not available. Second, neighbours have learned to help and share with each other. Third, there are far more candle lit dinners (and that has its benefits!).

Besides these more personal benefits, new industries, new companies, and innovations have benefited the economy. Suddenly a whole sector producing generators has emerged. People have to some extent become more self sufficient and those that have been open to it, have actually appreciated the “power outages”.

Life is so much about your focus becoming reality.

So what could possibly be the positive benefits that may occur from this current economic crisis?

The list below is not exhaustive, but over a quick cup of coffee at Sentinel, here’s what we have came up with:

•    People will become more aware of their spending and eliminate some of the wastage
•    There will be a greater appreciation for real value in work performed
•    A move back to “old school” principles
•    Young people will appreciate having a job (maybe that will create greater understanding between generations)
•    Ridiculous executive remunerations will be eliminated
•    A move away from “short-termism”
•    The financial service industry will be “cleaned up”
•    Quality financial advisers will emerge as clients will be able to differentiate
•    People will revaluate what’s really important to them
•    We may take the election of our leaders more seriously
•    Money will have more “value”
•    Real investment opportunities will emerge
•    Potential reduction in global emissions

We would love to expand the list so please send us any thoughts you may have.

Justin Hooper,CEO, Sentinel Wealth Management, www.sentinelwealth.com.au

by Nicholas Sinclair

The cost of living continues to rise, with fuel prices interest rates and the general passing of the buck. But you can reduce the cost of living in today’s world by taking a closer look at where your money is being spent.

The first place to start looking is at your budget. What budget I hear you say? Well get out a pen and piece of paper, because I am going to give you a few tips on how to start tracking your finances.

Start your budget by simply writing down what you spend over the week or fortnight (going by your income cycle is easiest). Your budget is your own personal tool and you can choose how much detail you want to include. Saving money will become easier once you’ve got a budget to tell you where your money is being spent.

Put your spending into categories - such as groceries - rather than keeping tabs on individual items such as shampoo, breakfast cereal and pet food.
Sometimes its easier to use two groups of expenses such as:

1. Essentials - bills you must pay to keep your household and family running, such as utilities (electricity, gas and water), housing (rent or mortgage), groceries, health, transport (car or public transport to travel to work or school), education and so on.
2. Extras - the other expenses in your life such as entertainment, holidays and gifts.

There are no set rules for creating a budget. What is important is that it is easy for you to understand. Remember to keep the list of categories simple and helpful to you. And be flexible, you can change the categories you use if you find they don’t work for you.

Once you’ve got all your outgoing’s down on paper, measure this against your income. Is it more or less than your outgoings? If you income is less than your outgoings than look and see where you can cut back your spending. Do you really need to buy takeaway food three times a week? Or how about those cappuccino’s everyday? If your income is more than your outgoings than your on the right track.

Calculate how much you can afford to put away each week for savings and there you go, you’ve started your first savings plan. Congratulations!

Remember to keep your budget up to date. If your spending habits change or income changes make sure you up date your financial tracker. By doing this you will be able to adjust your budget if you have to and also see if you can increase your savings.

It’s a good idea to review your budget every six to 12 months to check whether you are on track. Set realistic and achievable financial goals and once you reach those you will be more motivated to create new, elevated goals and set out to achieving them.

If you need some more help with setting up your budget, the Australian Government has developed a great, easy to use website understandingmoney.gov.au. This website is full of useful hints and tips and contains helpful tools and calculators including budget planner.

Goodluck!

This advice may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances.  Please seek personal financial advice prior to acting on this information.

Article written by Nicholas Sinclair at Wealthfarm Financial Planners www.wealthfarm.com.au

by Andrew May

Our modern way of living teaches us that faster is better. Speed is the new king with our lives measured in bits and bytes, and dissected into micro-detail. Is it any wonder our health, performance and relationships begin to suffer?

We are not designed to go flat out around the clock. Life is meant to be a series of sprints interspersed with periods of rest and recovery. Our culture has conditioned us to think that slow is the enemy of achievement, yet as the Slow Movement is showing us, nothing could be further from the truth.

The Slow Movement

The Slow Movement is about slowing down and taking time to enjoy the things that give us pleasure. It’s about reconnecting with food, people and places, but it’s not anti-work or even anti-capitalist. In fact as Carl Honoré says in his book, In Praise of Slow, “The secret is balance. Instead of doing everything faster, do everything at the right speed. Sometimes fast. Sometimes slow. Sometimes somewhere in between”.

Founded by Carlo Petrini, the movement started in the late 80’s as a foodie fight back against the opening of a McDonald’s restaurant on Rome’s Spanish Steps. Slow Food gave birth to Slow Cities, or Cittaslow in Italian. Adhering to the Cittaslow Manifesto, these towns of 50,000 or less embody a way of life that supports slow living; where traditions and conventional ways of doing things are valued.

In Australia, the town of Goolwa was recently named our first Cittaslow, while Bloodwood Vineyard in Orange is now making slow wines. Annually, Canberra also hosts the Slow Festival in celebration of all things, well, slow.

Lessons in slow from Kenya

When I was a middle distance runner in the 90’s, every year we’d get the opportunity to train with Kenyan athletes who would come out to Australia. Each year a different group of athletes would come, and amazingly each year a new champion would emerge from their ranks: the talent pool seemed endless. What did they know that we didn’t?

There’s a phrase in Swahili that sums it up, ‘hapa hapa’. It means slowly, slowly, and that’s exactly the way these high speed Kenyans took things. They listened to their bodies, training when they felt good and taking time off when they needed rest, often for weeks at a time. Looking back on my running career, I really believe I would have run much faster if I’d taken more notice of the Kenyans and trained hard and recovered even harder!

Eight go slow tips

Here are some great ways to apply the slow philosophy:

1. Slow stretching
Try doing a gentle 5 to 10 minute stretching routine before going to bed. Slow your breathing and your heart rate.

2. Slow walking
Emulate my dog, Cougar. Stop and sniff absolutely everything!

3. Slow weekends
Don’t race around trying to see and please everyone. Try shifting back a few gears and getting rid of the weekend to-do list.

4. Slow mini-breaks
Get away for a three day mini-break, but avoid scheduling every waking hour with sightseeing.

5. Slow food
Copy the Italians with a three to five course meal that takes a few hours to get through, washed down with a couple of glasses of hearty vino.

6. Slow gardening
Just stop and smell the roses! Potter in the garden and take stock of the beautiful smells and plants.

7. Slow sex
Tantric sex is not just for hippies and rock stars like Sting. This 5,000 year old discipline advocates slow sex as a way to increase awareness.

8. Slow thinking
Stretch out on the grass and stare up at the clouds. It’s amazing how often the biggest breakthroughs come when you turn off the conscious chatter.

Like to know more?

For more on Slow Movement practise, try Carl Honore’s book, In Praise of Slow – How a worldwide movement is challenging the cult of speed, or my latest book, Flip the Switch – Why performance increases when you play hard and recover even harder.

Andrew May is is considered Australia’s leading expert on performance and productivity and is the author of the bestselling book, Flip the Switch. Andrew speaks at conferences across the globe, mentors CEO’s and senior managers. He is published throughout national and international media, with regular segments on 2UE radio, Mix 106.5 Body and Soul and Channel Nine’s TODAY show.

by Heather Smith

Welcome to money savers anonymous. Hi! I am Heather Smith and I love to save money. I like to find a bargain, but what excites me even more than money saving is when I get something for free.

What’s more, being thrifty is in many cases environmentally friendly. I have applied this philosophy to my business and am happy to share these money saving tips with you.

1. Go halves on the cost of business cards and double your exposure with a complimentary business - your details on one side and theirs on the other. Or get a large business who is trying to break into the small business market to sponsor your business cards.

2. Stop subscribing to magazines and sign up for their newsletters instead.

3. Rather than send out printed newsletters, send out an email newsletter.

4. Get all of your old, good quality magazines and attach a business flyer to the inside cover. Contact a complimentary business or the local doctors’ office and ask if you can leave them in their waiting area.

5. Scan newsletters for money saving offers. I recently got a 3 license Microsoft Office package as a thank-you for attending a 90 minute Microsoft customer survey meeting.

6. Use forums and websites to research your market. For example, if you designed ladies clothing, you could post pictures of swabs of material you are thinking of using on women friendly forums, like Notebook. Invite feedback and build a community at the same time.

7. Utilise online communities like LinkedIn, Facebook and myspace to connect with people and further build your community.

8. There are many free training resources including online tutorials, webinars and podcasts available on the internet.

9. The library has a wealth of free information available. Take the time to learn how to put books on hold or request a special order (i.e. a transfer from an out of state library).

10. State Government organisations offer very reasonably priced seminars for business.

11. The Australian Taxation Office offers free seminars for business.

12. SMILE! That was unexpected wasn’t it? Simply being nice to people can assist in keeping the costs down.

13. Investigate whether your trade associations offer specialised services that suits your needs. For example, many offer discounted insurance and promotion within their member’s directory.

14. If you run a home office, find out how much of your buildings and contents insurance coverage will cover your home office.

15. Save money on passport photos here.

16. Plan your week so that errands and client meetings can be undertaken in one visit. This will save you time and petrol.

17. Investigate a telephone service such as Skype or Engin, and restrict overseas calls on your landline.

18. Turn off power switches for equipment that you are not using.

19. Use recycled ink cartridge.

20. Sign up with Freecycle. Freecycle promotes waste reduction, by matchings people who have things they want to get rid of with people who can use them. This means you can furnish your home office for free or save on dumping costs.

Finally some things that you should definitely not skimp on: a good quality office chair, the coffee or your bookkeeper!

We would love to hear your money saving tips.

Heather Smith, an MYOB Certified Consultant and Specialist Trainer, provides business management software solutions which generate accurate and timely financial information that the business owner can use and understand.

For more from Heather Smith, head to www.flyingsolo.com.au, Australia’s online community for solo and micro business owners.

by Justin Hooper

When we think about the Sydney Olympics eight years ago, for each of us there are one or two stand out memories. It could be Cathy Freeman’s 400m victory, Ian Thorpes’s gold medals or the wonderful work of the volunteers. What will your memory be of the Beijing Olympics?

Will it be Phelps 8 gold medals, the opening ceremony or something more universal? For me, in 8 or 10 years time I would hope I would have a more pleasant answer to the current impressions I have of the games. At the moment, I can’t get past the pollution! I can’t believe that after all the hype and money spent, and the wonderful facilities, the Chinese were unable to do much about the pollution. I couldn’t help think that no amount of money would encourage me to want to live in an environment where I struggle to breathe, ran risks of permanent health damage and potentially shorten my life significantly and could hardly ever see blue sky or any decent views.

Wow, for me the overwhelming impressions of the Olympics are my gratitude of living in Australia.

It made me think too of the saying “be careful what you wish for, because you may just get it”. How true that is.

I recently helped a client who a number of years ago had a goal to reduce his tax significantly.  He had (and still has) very high income from employment and decided that above all he wanted to pay as little tax as possible. Years later he has achieved his objective but is now desperately unhappy and stressed. The reason? He’s borrowed significantly, bought commercial properties, interest rates have gone up, new developments have been built, his tenants haven’t renewed and the property values have fallen. He is paying no tax but his life is desperately unhappy.

His financial situation is affecting his marriage, his job and his health. Be careful what you aim at.

I have always thought the Chinese plan in centuries not even in decades. These Olympics have made me wonder whether this is still true. Have they became equally short term focused with a desperate desire to “catch up” at the risk of losing themselves and their ultimate happiness in materialism?

Unfortunately, my overwhelming impression at this stage of the Beijing Olympics is the Chinese are desperately trying to create an identity of technological, construction and sporting brilliance rather than a great society. We in the West can’t criticize; we have done that so well ourselves that most of us think were successful but something inside of us tells us different.

That’s the problem with being focussed on goals. We convince ourselves that they are what we want. But in reality, we are often just living out of our identities – we convince ourselves that our goals are what we should be aiming at but for some reason, even when we achieve them we’re no happier. There’s an empty feeling which we can’t explain.

If you don’t believe me, ask yourself these questions:

-    do I compare myself to others even though I know I have been reasonably successful?
-    am I striving for financial freedom so that one day I can be truly myself?
-    do I feel chained to a job that limits me ability to express myself/

In a world fast changing to one of more authenticity, I wonder whether the Chinese would have preferred to have left a lasting legacy.

If you’re not completely conscious in life, you can’t be completely conscious in financial matters.

Justin Hooper,CEO, Sentinel Wealth Management, www.sentinelwealth.com.au