Your Financial Goals There’s one significant difference between people who succeed in life and those who struggle; their ability to set goals and achieve them. To have what you want in life, you can’t just sit back and expect it to happen. Success means different things to different people and when it comes to setting financial goals, success is much more than having a lot of money in the bank. A big bank balance is o...

Suddenly Rich Dreams sometimes come true! Occasionally some of us suddenly receive a large sum of money. For the luckiest, it might be a lottery win, for some it might be an inheritance and for others the sale of a business or property. Suddenly being rich is exciting, but for most people it is also frightening. Fear comes from lack of knowledge about the options that are available for spending or investing, not knowing h...

Check your PIE April marks the start of a new tax year, and is a significant month for investors. KiwiSaver members or investors in any other Portfolio Investment Entity (PIE) need to ensure they start the new tax year on the correct tax rate. These investments are taxed at what is called the Prescribed Investor Rate (PIR) and this should be confirmed at the beginning of each tax year. Set your PIR too low and you may be ...

Are you a Shopaholic? Severe overspending is a problem for around 10% of the population. Like any other addiction, it is usually triggered by an emotional or behavioural issue and followed by feelings of remorse and guilt. The overspender may then make promises and attempts to change but after that the cycle starts all over again. Often the biggest hurdle to changing this behaviour is for the overspender to acknowledge t...

To Live Over Again... There’s a well-known piece of writing by Nadine Stair, an 85 year old from Kentucky, USA, called ‘If I had my Life to Live Over Again’. It talks about how, with the benefit of hindsight, she would have taken more risks, dared to make more mistakes, and taken on more challenges. It is rather tragic that we don’t acquire the knowledge we need to live our life in the best way until it is too lat...

Risks for Retired Investors Retired investors typically look for security in their investments ahead of return. Superannuation payments barely cover the cost of living from day to day and saving in retirement is not possible without a frugal lifestyle. This means that any loss of capital from failed investments cannot be recouped from income. Some retired investors fail to realise however, that loss of capital doesn’t o...

Student Survival Tips Managing money when you are studying is not easy. Student allowances and loans fall far short of covering student expenses and the short fall can be typically around $5-10,000 per year. The gap can be closed by taking a part time job, getting help from family, a bank overdraft, a low interest credit card and, in some cases, extra support from Studylink. Careful money management is very important. An...

Be Prepared The Christchurch earthquake is a forceful reminder that our lives can be turned upside down in an instant and without warning. Being well prepared for disaster greatly increases your chance of survival on all levels; physical, emotional and financial. Those of us lucky enough to be observers of the Christchurch earthquake rather than its victims have a great opportunity to learn valuable lessons about what sho...

Money for Students The start of the university year sees thousands of eager school leavers leaving the safety and comfort of the family home and beginning their journey towards independent living. For parents and students alike, the dilemma of how to fund academic pursuits is not an easy one to resolve. Taking on debt is something that most prudent money managers avoid. There are, however, two categories of debt; ‘good ...

Invest in your Home Your home is your castle, so they say, and if it’s not as grand as you would like, now is a good time for improvements. Why? Largely because of the state of the economy. On a long term scale, we are at an economic low point. Properties are difficult to sell at other than a bargain price, tradesmen are short of work, and interest rates are low. With the cost of borrowing likely to be low for some time...