What financial advice would you give to a young person starting out today?

Start saving some of your money as soon as you can and open a KiwiSaver account as soon as you have a part-time job. Spend some and save some; you'll be amazed at how quickly your savings accumulate.

I have always talked to my children about the importance of savings and encouraged them to save for what they want. They both have part-time jobs around their studies and school, and they are both excellent at saving and, of course, enjoying their money, which I am very proud of.

Don't get into debt at an early age; save for what you want and buy it once you have enough.

I have spent a lot of time working with youth and talking about debt in previous roles. It's very easy for tertiary students or new job starters to be tempted to borrow to get "stuff" and then struggle to pay it back, which can become a vicious cycle.

What was the best thing you did with your money?

When we were able to cash out our super schemes, my best friend and I were able to buy our first home, which was a home and income property. When we sold that property, we each had enough to purchase our own individual homes.

How are you making your money work for the future?

Going through a separation can drain your savings and assets, and you often need to start again. Having a plan for the future helps you focus on what is important for you and your family.

What was a money "fail" for you? What did you learn?

Not starting to save earlier was a fail for me; I didn't prioritize saving. When you start later, it's a lot harder to reach the position you would have been in had you started putting some aside earlier.

What are the money principles you live by?

I have always had enough funds saved to cover three months' expenses should I be unable to work for whatever reason.

Also, make sure that you have "fun money" for dinners out, trips, sports, shopping, family holidays, or whatever makes you happy. You need to be able to enjoy it!

What is a money concept that changed your life/way of thinking?

Having always worked with money in some capacity, I am constantly learning and adapting my views. I believe it's all about the stage of life you're in as well.

Understanding that everyone's goals around money and wealth are different is crucial. What might be important to me may not be significant to someone else. You need to decide what your definition of wealth is and put a plan in place to achieve that.

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Tania

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Disclaimer: Crocker (FSP769894) is a Financial Adviser with Velocity Financial (FSP95466). No investment decision should be taken based on the information inthis blog alone. Please see Tania’s disclosure statement on our website.

‍Always get professional advice.

The information shared in this post is meant to be general guide to support you on your journey. When making important decisions about your finances, we encourage you to seek independent financial advice first, tailored to your unique situation.  As well as talking with a financial adviser, make sure you talk to your lawyer and accountant too – together they'll help you find the best solution for your specific situation. Our knowledgeable financial advisers are here to help. Check out our website for the details about our financial advisory services in our disclosures  https://www.velocityfinancial.co.nz/disclosure-statement. ‍