Tag Archives | money tips

Tips for Your Twenties

TwentiesTips for Your Twenties

What you do with your money in your twenties will have a significant impact on the rest of your life. Start off on the wrong track and it might take you years to get back on the right track. Make the right decisions with your money and your future life will be much easier. So how do you get it right?

  • Get into a good savings habit. If you don’t learn to save now, you probably never will. Saving is easy; it’s just a case of spending less than you earn.
  • Join KiwiSaver – it’s the best return you will get on your savings and the earlier you start, the easier it will be to save for your retirement.
  • Learn to respect and value money by spending wisely, looking for discounts and paying bills on time to avoid penalties.
  • Stay out of debt, unless it is to buy a house or set up a business. Paying interest on debt takes your financial situation backwards.
  • If you get into financial difficulties, get help from a budget adviser. Talk to the companies you owe money to and come to an arrangement so as to maintain your credit rating.
  • Talk to an insurance broker about your insurance requirements, especially for life, income protection and health cover. If you have health issues later in life you may find it more expensive, difficult, or even impossible to get cover for some things so put it in place now.
  • Get legal advice on how to protect your assets in the event that you have a relationship lasting more than three years which comes to an end.

There is much to learn about managing your financial affairs, but there is lots of information available online or from experts who can help you.

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5 Money Tips for the Self Employed

PlumbersVan5 Money Tips for the Self  Employed

Owning a business is a great way to build your wealth. Use these five money tips to make the most of your opportunity.

 

 Tip # 1 Join KiwiSaver

Being self employed doesn’t preclude you from joining KiwiSaver. If you are not a PAYE employee of your business, your contributions will be made directly to your chosen KiwiSaver provider. By contributing around $87 per month, you will be eligible for the kickstart of $1,000, an annual tax credit of $521 and other KiwiSaver benefits.

 Tip # 2 Have a financial safety net

A high percentage of new businesses fail within the first two years and at the other end of the spectrum, older businesses can fail due to changes in markets and technologies. Reduce your financial risk by holding some of your wealth outside your business. In the worst case scenario, you will have financial assets to rebuild from.

 Tip # 3 Separate business and personal money

One of the keys to successful business management is keeping a close eye on the cash flow and the performance of the business. Small business owners often make the mistake of mingling their business income and expenses with personal income and expenses, making it difficult to monitor performance.

 Tip # 4 Pay yourself a regular amount

To successfully manage your personal finances it helps to have certainty about what your income is. Paying yourself a fixed amount on a regular basis from your business will make this easier. Adjust the amount up or down after a period of time if your average business income changes.

 Tip # 5 Have an exit strategy

From the day you start your business, your plan should be to maximize the price it can be sold for. You will need a clear plan of how you are going to add value to the sale price and how or to whom it might be sold.

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Money Tips for Travellers

Money Tips for Travellers

An overseas holiday is something to look forward to but it can also be stressful when things don’t go according to plan. Losing money, not being able to access it or running out of money can spoil a dream holiday.

Travellers cheques and cash were once the most common forms of taking money overseas, however there are now much easier methods. Travel cards are prepaid multiple currency cards that can be used in ATMs and wherever credit cards are accepted. They are available from travel agents and banks. Examples are the Travelex Cash Passport, Kiwibank’s Loaded to Travel card and the ANZ, National and Westpac Travel Cards. There are a variety of fees that apply for loading the cards, topping them up and making cash withdrawals so it pays to shop around to get a good deal before you buy your card.

Some of the key advantages of travel cards are:

  • You can buy your foreign currency in advance at a known exchange rate
  • You can hold up to five different currencies on the one card
  • You can top up while you are away using online or telephone banking
  • If you lose your card you can cancel it
  • Your losses are limited to the amount you have loaded onto the card
  • Fees are lower than for ATM cards and travellers cheques.

Take a variety of means of payment with you; some cash for immediate needs, a travel card for general use and a credit card for emergencies. Keep them in different places so you don’t lose everything at once. Make a list of all the emergency numbers you need to call in the event you need to cancel your cards. These simple steps should allow you to have a holiday free of money problems.

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