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We know that our assets (vehicles, houses, businesses) are valuable, so we insure them to protect them from disaster. We know that without income, we may lose assets. So, we protect the income.
Income means choice and is one of the basic fundamentals of wealth.
Managing and securing your money is like running an ultra-marathon. It requires some careful planning, consistent training, and the ability to endure difficult times.
Just as runners need to pace themselves and conserve energy for the long haul, you need to make smart financial decisions and prioritize your spending to ensure you have enough resources to last throughout your financial journey.
Like in an ultra-marathon, there will be obstacles and challenges along the way, but with proper preparation and persistence, you can cross the finish line with your financial goals intact.
Online courses are a great way of learning about finances and the best ways to look after your money. YouTube has a plethora of channels dedicated to every which way of ‘money management’ There’s countless personal finance books and websites with resources available that provide in-depth information on various aspects of personal finance, including budgeting, saving, investing, and managing debt, tips and tricks to ‘exceed the benchmark’, ‘stay ahead of the game’ and so on.
Many community organisations, libraries and financial institutions have classes, workshops, and seminars like first home buyers’ evenings to promote the process and make the mahi easier for the client.
Here are some of our favourites:
Mary Holm is an award-winning NZ Financial Journalist with a regular podcast on RNZ National
Luke Kemey's Keep The Change newsletter, blog and podcast are great snippets of good info
Stuff Money has a broad range of topical articles worth a delve into and Rob Stock's articles are always interesting.
Ellevest is a Fintech company with solid advice on investment and wealth philosophy for women (but men can get just as much out of these principles too.)
If you are after a higher-level economic view, you can investigate these websites.
Sorted.org.nz is a great place to start.
It’s going to be tight this year, as you know, with cost of living, higher mortgage rates on top of what seems like mounting outgoings. Start tracking your income and expenses to understand where your money is going each month, then create a budget.
Email us to use our free budget template.
Of course, with all this noise about saving and what to do with your precious hard-earned money, you may be thinking, argh, boring. FOMO, YOLO, and the rest. Well, saving doesn’t have to be boring.
Have a budget friendly night in, take advantage of free activities, plan a staycation. (With this weather, why would you want to go out?) Put some money away when you get paid that goes towards something you love, a trip, an activity, a home loan deposit account, kids Kiwisaver, Sharesies etc.
Known as ‘pay yourself first’ – you automatically transfer a portion of your income into a savings account each month can help you build an emergency fund.
Aim for enough savings to float yourself for three to six months, or nine months if you are self-employed. You may also want to contribute some money to a "F*ck-You Fund," which is more for having money to get yourself out of a bad situation. Ellevest sums it up nicely in this article.
One key big picture consideration when you’re having grand thoughts about building your wealth, buying your first home, investment property, paying down debt, paying for kids and their wonderful associated and rising costs, is what if the income stops.
It probably won’t, right?
If it does, having ‘paid yourself first’ will be a relief, but not the remedy. Having some risk cover or other sources of income will mean your situation could be less dramatic or traumatic. That health cover that Mum and Dad put in place under their policy when you were ‘just a kid’ – oh, I’d never get rid of that – well, ‘that’ is just the start. There are tools that can provide a custom solution to your (potential) ‘what if’.
Talk: Or, make a time with me to discuss your options.
Just like how your house, car and contents insurance provides coverage for financial losses for unforeseen events, similarly, in both insurance and ultra-marathons, having a plan and being prepared can greatly increase the chances of success and reduce the impact of potential difficulties. It’s important to have a well-thought-out strategy and the determination to see it through and have a team of advisers (paid by the product providers) to assist in the journey.
Simon.
About Simon
Hi, I’m Simon a Financial Advisor here at Velocity Financial. I enjoy working with my clients to help demystify all the Mortgage, Insurance and KiwiSaver fine print, and help get them to where they want to be. I am dedicated, thorough and offer professional advice that works for you. I like to help people on their journey and be a trusted person to guide them through really important events in their lives such as the home buying process. I help my clients collaborate with valuers, builders, lawyers and real estate agents to ensure a seamless experience. That satisfaction of reaching the goal with the least amount of stress for my clients is hugely rewarding. I navigate unique scenarios and tailor lending solutions for individual circumstances to save money and time. As a proud father of two and avid supporter of all my children’s endeavours, I know just how precious that time is. On the weekends you’ll also find me mountain biking, surfing, or checking out NZ’s great walks.
Disclaimer: Simon O’Neill (FSP534466) is a Financial Adviser with Velocity Financial (FSP95466). No investment decision should be taken based on the information in this blog alone. Please see Simon’s disclosure statement on our website.