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Avoiding Mistakes with Money

“There are three ways to learn, the hard way, when you learn from your own mistakes, the easy way, when you learn from the mistakes of others, or the tragic way, you never learn and keep making the same mistakes over and over again.”-Brian Houston, Australian televangelist.

Making mistakes with your finances will be very costly. Here are some of the main ones to avoid.

Mistake number one-Spending everything you make

This is a common mistake made by too many people. You can by living within your means and still making this mistake. It is when an unexpected bill arrives that causes a lot of financial pain in households. Having some kind of emergency fund and a savings for the future fund will have you better prepared for financial shocks. 

Mistake number two-Not investing

Not investing any of your savings is a common financial mistake made by financially illiterate people. There are lots of opportunities to sow into your financial future. Joining your country’s retirement scheme is a must do. New Zealand and the United States retirement schemes have their own incentives to encourage members to contribute; make use of these. Share market platforms such as Sharesies in New Zealand and Robinhood in the United States enable investors to drip-feed money into the markets. 

Mistake number three-Not joining your country’s retirement scheme

This is a mistake which I have seen too often and this mistake is usually made with some kind of excuse. In most cases it is not a mistake but rather a choice; one which is going to cause problems later on in life. Most countries have their own retirement scheme and it is up to you to join whichever country you belong to.

Mistake number four-Unwilling to become financially literate

There is really no excuse for not being financially literate with so much material of a financial nature being available on and offline. Much of it is written in an easy to read format. Your local library will contain books which are useful. The internet has a lot of information available. If you have any questions then ask google or chatgpt and see what comes up.

Mistake number five-Not taking responsible for your own finances

Some people like to blame others for their own mistakes instead of taking responsibility for them. Take advice then make your own decisions. Once a decision has been made, take responsibility for them. 

Mistake number six-Hanging out with the wrong crowd

Spending too much time with the wrong people will hinder you in life. They will have some kind of influence on your lifestyle and this in turn will affect the decisions you make. You need to spend time with intellectually stimulating people. You are the average of the five people you spend most of your time with.

Mistake number seven-Impatience with money

Developing your own financial strategy requires patience. Those who are impatient will seek shortcuts such as playing the lottery or some other get rich quick scheme. AS a result many people lose a lot of money in their attempts to make a lot of money in a short time. The Share market is a long term game and requires patience.

Matter of choice

What you do with your money is a matter of choice and all of the mistakes in this article can be described as such. You make your choices and your choices make you.

About this article: This article is of the experience of the writer and may not be applicable to your own personal circumstances.

www.robertastewart.com

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Internet Banking Tips

Internet Banking Tips

Written by R. A. Stewart

Internet banking is here to stay whether we like it or not but so is internet scams which have caught so many people out. It is important to stick to a set of rules in order to minimise your chances of being caught out by these scams. Here is a list of rules which will help you to keep out of trouble.

Rule one-Use a separate email address for dating sites.

If you are using a dating site then do not use the same email address you would use for your banking. You have heard of “Romance Scams” and these come in many different forms. You certainly do not know who you are dealing with and you do not want your main email address clogged up with unwanted emails. 

Rule two-Two factor authentication

Give yourself an extra layer of protection by setting up a two-factor authentication. This will involve setting it up with your phone. Once this is done you will sign in with an username and password and then receive a text with a code which you will type in the space provided.

Rule three-Do not connect your debit card to your personal account

This is just asking for trouble! One person I know was fleeced of $3,000. He invested this money into his everyday account then the money disappeared from his account the following day. A site he bought goods from had his debit card details and this was linked to his personal account with the hacker having his and other customer’s banking details. The bank made good his loss.

Rule four-Do not leave all of your money in one account

You should never just leave all of your money in your personal/everyday account. Your savings should be in a separate account. It is important to establish firstly what this money is for and invest it accordingly

Rule five-Do not click on links

It is not always possible to know whether an email you receive is from your bank or from a scammer, therefore, make it a rule to never click on a link in an email. Instead, type in your bank’s website on your computer.

Rule six-Use this google trick

Copy and paste any email you receive from your bank into the google search engine and see what comes up. Do the same with any phone number you receive in an email or text. This night threw up some red flags.

Rule seven-Never, never give your password to anyone

Never give your password to anyone if they ask for it. If anyone asks you for your password in an email or text message then this is a certain red flag.

About this article

Feel free to share this article on social media. You may use this article or any part of it as content for your website or blog.

www.robertastewart.com

 

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Tell tale banking scams

The tell-tale signs of a scam

Written by R. A. Stewart

Millions of dollars are lost to scammers every year therefore, it is important to put rules in place in order to not be a victim. Here are 8 telltale signs to look out for.

Sign 1: The return is expected to be 10%+ per annum

Be even more sceptical if they say the investment is low risk. Investments by their very nature have their ups and downs. If it sounds too good to be true it almost certainly is.

Sign 2: Very high past returns

Scammers will try to tempt you by telling you about huge returns they have made in the past. They will select a particular period to present to you or simply exaggerate past returns.

Sign 3: You will be pressured into a quick decision

“Get in now before it is too late” or “act now” are commonly used phrases to get you to sign up. Scammers will prey on the fear of missing out mindset which many people suffer from.

Sign 4: You are approached out of the blue

A stranger approaches you by text, email, or phone with this great offer that is going to make you rich. The truth is they are the ones who are getting rich from this offer.

Sign 5: Free courses or seminars

You are offered a seminar for free or at a minimal cost. The presenters at the seminar can be very pushy and pressure attendees to sign along the dotted line.

Sign 6: Asking for PIN numbers and passwords

This is applicable to email scams. Never, never, never share your PIN numbers and passwords with anyone. Banks will never ask for these. When signing in to your bank type in the URL address and never just click on a link because scammers will set up a fake bank website which looks like the real thing. It is often hard to tell the difference though.

Sign 7: You have won a prize you never entered.

You receive an email saying that you have won a prize in a competition you never entered. This has scam written all over it. Delete the email immediately.

Sign 8: You are asked not to share this opportunity with others

A scammer does not want you to share this so-called opportunity with others; they want you to keep it to yourself. The reason being that others may spot the tell tale signs that this is a scam before you do.

This is all a reminder to be very vigilant and set some hard and fast rules that you never break under any circumstances. Things you can do to prevent being scammed.

1 Never, never, never give out your password or pin number to anyone under any circumstances. 

2 Never click on any email links from any bank; instead, type in the URL address and log in.

3 Do not leave all of your money in one bank account. Invest it in several places.

  1. Do not use the same email you use for banking for signing up to dating websites.

It is a good idea to cut out newspaper clippings from articles about people who have been scammed and learn from other people’s experiences. Take notes of how you can tighten your own security.

About this article

The information provided is based on the writer’s knowledge and experience, therefore discretion is advised as it may not be applicable to your personal circumstances.

www.robertastewart.com

 

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Investing in Gold

Investing in Gold

Written by R. A. Stewart

Is Gold a good investment?

That is a question I cannot give you an answer to because it is a bit like a “How long is a piece of string?” question.

Whether investing in something is good or bad really depends on your personal circumstances and where this investment fits in with your objectives.

Is the money/investment needed in the short term, medium term, or long term?

Once you have answered this question you will have a better idea of whether gold is a suitable investment.

Problem with gold is…

That it does not provide investors with an income. All they can expect is capital gains; that is, selling gold at a higher price than when it was bought for.

The Share market provides a dividend to shareholders of the various companies and there is the opportunity to profit from the increasing value of the shares. 

Another problem with holding physical golds is the storage costs and this can mitigate any capital gains from selling it.

Different ways of investing in gold

There are several ways of investing in gold and there are pros and cons with each of them.

The easiest way of investing in gold is to purchase shares in a gold mine but this is very risky and should only be done with money you can fully afford to lose. Your country’s stock market may have listed companies of gold mines.

Purchasing gold coins is another way. You will find gold coins listed on ebay but the downfall of investing in gold in this way is that the seller will seek the highest price possible for their coins; and it may not reflect it’s true value.

Buying gold from a dealer is another way but this is beyond the means of a lot of people and then there is the problem of storage not to mention the risk of theft.

Collecting gold jewellery is another way of investing in gold. Just as collecting other items such as postage stamps, old comics, or barbie dolls, they give enjoyment to the collector and the items are worth something when it comes time to sell.

Investing in gold as an interest

Gold can provide an added interest to your portfolio. If you have discretionary money to spend then investing in gold can add an extra string to your financial bow and if the investment turns to custard then there is no damage done. After all, millions of dollars are lost in lotteries every year and no one blinks an eye lid. Giving up lotteries and use the money to build up your gold investments should be your best approach. 

The risk of investing in gold

There are risks with investing in Gold as there are with other types of investments but these risks can be managed. It is important for investors to do their research in order to understand these risks. 

Investing in gold should not be an alternative to contributing to your country’s retirement scheme.

The rules of investing

The rules of investing are just as applicable with gold as they are with other types of investments. Where does gold fit into your overall investment strategy? If you have some disposable spending money to invest then investing in gold is a good option. It will provide an added interest to you; that is interest in terms of enjoyment such as a stamp collector would derive interest from his or her hobby.

It is certainly not wise to just purchase gold with money which you can ill afford to lose or to invest your whole life savings into it. That is just asking for trouble. 

To summarise

Investing in gold can provide you with an interesting string to your financial portfolio, but it does have its pitfalls. It is important to weigh up the pros and cons and only invest money in gold which you can afford to lose. Read up on the subject and then decide whether gold is a suitable investment for you.

About this article

The opinions in this article are of the writer’s opinion and may not be applicable to your personal circumstances. You may use the content for your blog/site or ebook. Feel free to share the article on social media.

www.robertastewart.com

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Your Investing Risk Profile is an Important Factor

Working out your risk profile

Investing money has its risks, more so if you are prepared to go for growth type of investments but you may not have the stomach to take on risky investments.

It all depends on your investment time frame which basically means how long it will be before you need the money.

The longer your time frame the more risk you are able to take with your money.

There are factors which determine your time frame and they are:

Your Age

Obviously if you are 65 then you are not going to set a 30 year savings goal, if you are in your 20s you can take more risks but that does not mean you should be reckless and just invest all your money in Bitcoin in an attempt to get rich quick.

Your health

Your savings goals

The key strategy whatever your risk profile is diversification.

That is to spread your portfolio over a wide range of industries. This is possible for the ordinary man and woman in the street who are able to invest in managed funds where your investment is combined with those of others. It is then up to the fund manager to handle all of the investments. This is exactly how kiwisaver operates.

Each fund will give you an option of investing in Conservative, Balanced, or Growth funds and your decision of which fund to leave your money in will be determined on whether you can stomach heavy losses should the share market go belly up. If the thought of losing your money will cause you sleepless nights then you should go for balanced funds. Conservative funds will not grow your money at the same rate as balanced or growth funds will and once the fund manager withdraws their fees it may feel as though your money is not growing at all.  As far as Kiwisaver is concerned, the government will contribute 50% of what you put in to a maximum of $520 every year so at least this would make it worthwhile for you to at least contribute $1,040 a year to get the $520. This will seem like obtaining 50% interest on your  $1,040 for that year.

It all adds up and no one is going to reach the retirement age of 65 and regret that they contributed to their Kiwisaver.

Your risk profile is not the only determining factor in deciding which fund to choose. If you are saving for a deposit on a home then you are not going to want to risk losing your money in the share market which will happen if you had all of your money in Growth funds only for the markets to tumble.

Investing in growth funds for long term growth and taking needless risks are not the same thing.  If you invest in something dodgy without knowing anything about what you are investing in then you are asking for trouble.

Your age is another factor to consider. When you are young, it is advisable to go for growth funds because you have more time to recover from a financial setback such as a market crash, whereas someone nearing retirement would have their retirement plans affected should this occur.

It is your money however and your own responsibility to decide where you are going to invest so learn all you can about the various types of investments and in time you increase your financial literacy.

It is sensible to diversify and invest in a range of industries. Placing all of your eggs in one basket  is not sensible. There are stories of those who did just that and lost during the Global Financial Crisis as several finance companies fell.

The information given here is my own opinion and not given as financial advice. It is best to seek professional financial advice if you are unsure.

Note: Kiwisaver is New Zealand’s retirement savings scheme and this information may not be applicable in your own country. 

www.robertastewart.com

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3 Ways to lose during a Share Market Slump

It is easy to be very confident about your investments when all is going well and your investments are rising in value but it is when the market has taken a dive when your real character is revealed.

Investing needs to be done with the right mindset otherwise allowing your emotions to take over your decision making can turn out to be very costly in the long term.

The newspapers may say, “Investors have lost millions,” but the reality is they have lost nothing, well not unless they have sold their shares during a market slump.

If you have an investment strategy then the possibility of a downward trend should have been taken into account so a market downward trend will not be of a concern.

There are three ways which you can lose during a share market slide; here are are:

  1. Sell your shares

Selling your shares during a market slide is a guarantee that you will lose; more so if you bought your shares during the peak. The share market will have it’s ups and downs and is a long term game. If you are saving money for the short to medium term then investing in growth funds may not be the right place to have your money. On the flip side of that is a rising market can help you reach your savings goals faster. It is the catch 22 situation in that if there is an opportunity for a capital gain there is an opportunity for a capital loss.

  1. Change funds

Changing from growth funds to balanced or conservative during a market downturn is a way of guaranteeing a loss. In other words you are selling shares at a lower price than you bought them for. It is the issue of allowing your emotions to rule your better judgement. 

  1. Stop Contributions to your retirement fund

This is a sure way to lose during a market slump because you are missing out on bargains in the share market. You may not lose your money by not investing during a market slump but you are losing in other ways because if you decide to just leave your money in a low interest savings account the value of your savings is being eroded by inflation.

Talk about a sure fire loser!

The share market rewards consistency and that means making contributions through good times and bad. During times when the share market is during a bear market phase you will get shares at below their market value while during a bull market cycle you will get a lot of shares at above their market value. All of this will average out over a period of time and the longer you are involved in the share market and participating the more chance you give the law of averages to work in your favour.

About this article

You may use this article as content for your ebook, website, or blog. Feel free to share it with others.

Start investing on a shoestring

Sharesies makes it possible for anyone to get into buying and selling shares. It is an online share market platform where you have the option of purchasing shares in individual companies or in various funds (managed/mutual funds). You can even start with $5. This is a no brainer because it gives investors young and not so young the chance to improve their financial literacy. There is certainly no substitute for experience when it comes to learning and this is applicable to everything else, not just investing.

Join sharesies here: https://sharesies.nz/r/377DFM

 

Note: This article is of the opinion of the writer and may not be applicable to your personal

www.robertastewart.com

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7 New Year’s Resolutions which are Destined to Fail

  1. Lose weight

A New Year’s resolution to lose weight is destined to fail because it is vague and not specific. It does not say how you plan to lose weight and how much weight you are going to lose. A better goal will be “I am going to Give up going to fast food outlets” or “I am going to join the local running club.” If you are going to give something up then it may be an idea to have some alternative healthy options in mind. Focus on living an active and healthy lifestyle and the weight issue should take care of itself.

  1. Save Money

A New Year’s resolution to “save money” is just as vague as a goal to lose weight. There is no power to it. If you are just frittering away your discretionary spending money and have little or nothing to show from your labours then something has to change in order for your finances to change. You are better advised to decide on what you are saving for and take the steps needed to get there. Joining kiwisaver if you are not already enrolled has to be your number one priority. There are share market platforms such as Sharesies, Hatch, and Kernel Wealth which are set up to enable ordinary people to invest in the share market.

  1. Get Fit

A New Year’s resolution to “Get Fit,” is another one which is destined to fail because it is too vague and not specific enough. How you are going to get fit is not answered in a “Get Fit” resolution. If you have a “Get fit” resolution then what happens is that after a couple of days of running around the block or a few games of backyard cricket old habits will take over and your New Year’s resolution will become a distant memory.

  1. Learn to Swim

“Learn to swim” as a New Year’s resolution is not specific enough. It would be better to have a goal of, “To take lessons at the local pool once a week,” or to resolve to practice one new swimming skill every week. It is consistency which drives results. 

  1. Learn to Drive

Another example of a vague goal. It is better to have a New Year’s resolution of “I intend to sign up for driving lessons on New Year’s Day or whenever the Driving School is open for business after the holiday break.

  1. Get a Job

Deciding to “Get a Job” as your New Year’s resolution means that just taking any job which comes along will fulfil your goal. If that is what you want; that is fine but if you have something specific in mind then specify it otherwise you will end up with nothing. It is worth keeping in mind that many people will work at something they do not like until something more suitable comes along.

  1. Learn a new Language

This is another example of a goal which is not specific enough. There are dozens of languages you could learn so which one are you going to tackle? It will be better if you set a goal of “I will learn one new French/Chinese/Italian or whatever word per day. Such a goal is specific and tells you what you need to do in order to achieve your goal.

 

Your New Year’s resolution needs to be specific and have an action in it otherwise it will be just a wish. It is your desire which will enable your New Year’s resolutions to become the permanent change you are seeking. Just take one day at a time and see what happens.

www.robertastewart.com

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My Experience with Network Marketing

Network marketing

The success of network marketing companies such as Amway, Herbalife, and Kleeneze has proved that the Multi Level Marketing concept can work if you choose to join the right company and if you approach these schemes with the right attitude and are prepared to spend a lot of money, in some cases 1000s in order to progress up to the highest level in the company.

Almost any product or service can be marketed through network marketing but the main players in the MLM industry seem to be those which focus on nutrition and personal care products.

Any company which promises high returns by recruiting others into the scheme with the absence of tangible products is likely to be a pyramid scheme which is illegal in many countries including New Zealand, Australia, Canada, The UK, and Ireland. The promoters of these schemes describe them as MLM or network marketing companies in an attempt to legitimize them.

If a proposition seems too good to be true then it most probably is, there is no such thing as a free lunch, if in doubt then seek legal advice.

The money to be made in network marketing is in the recruiting and training of others. The object is for your team members (the persons you recruit or sponsor) to duplicate your efforts.

Does this sound like pyramid selling.? Well you be the judge because there are some very well-known companies who sell products in this manner.

Amway which was established in 1959 was the frontrunner in the network marketing field. Herbalife (established 1980)

Then there is Melaleuca which sells products using tea tree oil. Melaleuca which is the botanical name for tea tree has tried to distance itself from the network marketing image by using the term referral instead.

All these companies would almost certainly scoff at suggestions that they are all pyramid schemes. 

Many people who have reached the top of the tree in network marketing have done so only after investing a great deal of money (1000s) and in some cases going into debt but whether they have made any real money is another matter altogether.

The British company Kleeneze (established 1923), is different from other MLM companies in that agents drop off catalogues at people’s homes, collect them a few days later, and if there is an order deliver the goods to them perhaps a week to 10 days later. This method of selling is similar to Homecare direct shopping in NZ and Australia except that with Kleeneze, you can increase your income potential by sponsoring others into the business.

However as with other companies, finding other people who share your vision and that of the company is a problem. 

Before you commit yourself to one company, do an internet search to find out how others have feared. You will find a lot of feedback in this way however please also bear in mind that the opinions of others may not be a reflection of the company but merely their attitude, the company they joined may not have been right for them and who is to say that is not the right one for you?.

Kleeneze is one company I had success with. By dropping off catalogues at houses then collecting them 2 or 3 days later hopefully with an order much the same as Homecare direct shopping do in New Zealand and Australia but the difference between Kleeneze and Homecare is that Kleeneze is a network marketing company.

Every Kleeneze agent gets 21% commission of all orders collected irrespective of their status in the company. These are orders obtained by dropping off catalogues at people’s homes, picking them up a few days later hopefully with an order and delivering the goods, collecting the money and paying the company minus your commission.

It is in the bonus structure where you can really make the money.

By introducing others into the business, their sales figures are combined with yours to form what is described as volume total.

You earn a bonus on your total volume orders for the month as follows.

Monthly total Bonus

650-1299 10%

1300-2249 13%

2250-3399 15%

3400-5000 18%

5100-7499 21%

7500+ 24%

There are other bonus payments available.

Kleeneze proved very lucrative just by dropping off the catalogues and developing a regular round of customers, I did have three people under me but they gave up after a week or so, one after owing me more than 300 pounds. That is not going to occur now as everyone who joins Kleeneze now has their own account 

The main quality for success with any of these network marketing is passion for what you are doing. Without it you have not a chance of succeeding. Of course agents of the companies concerned will present the companies to you wearing rose tinted glasses, because everyone they sponsor into the business is helping to build theirs.

Melaleuca was a referral company I joined some time ago however I parted company with them when I lost my job.

Each person who joins Melaleuca agrees to purchase 35 points worth of product per month which equates to about $120. This is irrespective of whether you need any product or not. Agents can earn bonuses by referring others into the business. Agents require at least 8 referrals just to pay for their monthly order. A tall order indeed since the products are rather expensive, for example toothpaste around $9 and shampoo $19.95. 

This business would suit people who have contact with others in high paying jobs where money is no object to them

Herbalife is the same but as with all of the other MLM companies, though agents may claim to have received cheques from them for xxx, the amount they have poured into the business is quite a bit more.

To sum up, don’t go into network marketing as a means to get rich quick with little effort, you will be disappointed. Go in with an open mind. Check the credentials of the company and whether it is the right one for you and most of all ask yourself this question “what motivates me”.? If you know the answer then it’s a start.

 

To summarise: Network marketing is not the best way to make money for the majority of people. The majority of people involved in these types of businesses are subsidising those at the top. If you are thinking of joining, keep an open mind and understand what you are getting involved in. Above all else, don’t allow anyone to pressure you into joining.

About this article

This article is of the opinion of the writer and may not be applicable to your personal circumstances therefore discretion is advised. You may use any or part of the article as content for your website/blog, or ebook.

www.robertastewart.com

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Sharesies vs. Hatch: Which Investment Platform is Right for You

Introduction

Investing in the stock market has become more accessible than ever, thanks to the proliferation of online investment platforms. Two popular options in New Zealand are Sharesies and Hatch. These platforms offer different features and cater to various investment preferences, making it essential to understand the differences between them to determine which one is the right fit for your financial goals. In this article, we’ll compare Sharesies and Hatch, exploring their key features and what sets them apart.

Sharesies: Making Investing More Accessible

Sharesies, launched in 2017, has rapidly gained popularity in New Zealand for its user-friendly interface and mission to democratize investing. The platform allows users to buy and sell fractional shares, making it ideal for those who want to start investing with a limited budget. Here are some key features of Sharesies:

  • Affordability: One of Sharesies’ standout features is its ability to buy fractional shares, meaning you can invest in high-priced stocks without needing to purchase a full share. This opens up investment opportunities for individuals with modest budgets.
  • Diverse Investment Options: Sharesies offers a wide range of investment options, including New Zealand and international shares, exchange-traded funds (ETFs), managed funds, and more. This diversity allows you to build a well-rounded portfolio to meet your investment objectives.
  • User-Friendly Interface: The platform is designed with the user in mind, making it straightforward for beginners to start investing. It provides educational resources and tools to help users understand the world of investing.
  • Transparency: Sharesies is transparent about its fees, making it easy for investors to understand the costs involved in their investments. The platform charges an annual subscription fee, which can be advantageous for active investors with a larger portfolio.
  • Community and Social Element: Sharesies fosters a sense of community through its forums and discussion boards, where users can engage with other investors, share their insights, and learn from one another.
  •  Join Sharesies here

Hatch: Access to International Markets

Hatch, on the other hand, is designed to provide New Zealanders with access to international investment opportunities. It offers a gateway to the US and Australian stock markets, allowing users to invest in companies listed on these exchanges. Here are some key features of Hatch:

  • Access to International Markets: Hatch enables New Zealand investors to purchase shares in companies listed on the US and Australian stock exchanges, such as Apple, Amazon, and Tesla. This access to global markets provides diversification opportunities beyond the local market.
  • Direct Ownership of Shares: Hatch allows users to directly own shares in the companies they invest in. This means you have more control over your investments and can receive dividends if the company pays them.
  • Wide Range of Investments: In addition to individual stocks, Hatch offers access to ETFs and index funds, providing a broad range of investment options to suit various strategies and risk appetites.
  • No Subscription Fee: Unlike Sharesies, Hatch does not charge an annual subscription fee. Instead, it operates on a transaction-based fee structure, where you pay a fee when you buy or sell shares.
  • Educational Resources: Hatch offers educational resources and insights to help users make informed investment decisions, particularly in the context of international markets.
  • https://app.hatchinvest.nz/share/rtb24muk

Which One Should You Choose?

The choice between Sharesies and Hatch ultimately depends on your investment goals, preferences, and level of experience. Here are some considerations to help you decide:

Choose Sharesies If:

  • You are a beginner investor or have limited funds to start with.
  • You prefer to invest in New Zealand shares and ETFs.
  • You appreciate a user-friendly platform and a sense of community among fellow investors.
  • You want transparency in fees and are comfortable with the annual subscription model.

Choose Hatch If:

  • You want to access international markets and invest in US and Australian stocks.
  • You have a specific interest in owning shares in individual international companies.
  • You are comfortable with a transaction-based fee structure and don’t want to pay an annual subscription fee.
  • You are looking for diversified investment opportunities beyond New Zealand.

Conclusion

Sharesies and Hatch offer unique investment opportunities, catering to different preferences and financial goals. Sharesies is well-suited for those looking to invest in New Zealand and start with a limited budget, while Hatch provides access to global markets and individual international stocks. Carefully assess your investment objectives, risk tolerance, and budget to determine which platform aligns with your needs. Both platforms have their strengths, and the choice between them should be based on what suits your individual circumstances and investment strategy.

Disclaimer: I may receive a small commission if you sign up with Sharesies or Hatch.

www.robertastewart.com

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Budgets for personal finance

Establishing a budget is an excellent way of tracking your spending and  you do not need to be struggling with money matters in order to benefit from using a budget. 

Budgets can expose some cold hard home truths

Doing a budget can be the simple solution to rectifying a challenging financial situation but few people do a budget because it exposes spending habits which they prefer to keep hidden. Many people do not want to change their habits despite it costing them an arm and a leg.

There are two parts to a budget.

Your income and your spending.

Your income can be wages from a job, profit from a business, or  income from investments.

Your spending covers everything which is costing you money. 

In short if it makes you money it is income and if it costs you money it is spending.

If you can do some simple maths you will soon discover whether you are left with a surplus or a deficit.

If you have a surplus and you are in debt, use the money to pay off your debt.

If you do not have any debts you can use some or all of your surplus for one or more of your goals; this could be saving for a holiday, saving for a house deposit, saving for a car, or investing it in the share market.

There are so many places to invest your money these days that if you did your homework you will find an appropriate investment for your circumstances.

If you have a deficit you need to take some kind of action rather than try and bury your head in the sand because if you do nothing your financial situation will worsen.

There are two things you can do to balance the books;

1 Reduce spending

2 Increase your income

I don’t know how financially literate you are but if you do not understand financial jargon then I advise you to see a financial advisor to discuss your situation. The public library will have information on where to find a budget advisor.

At the Library will will also find good books on how to manage your finances and increase your wealth.

A budget advisor is unable to help you unless you are completely honest about where your money is going. 

It is up to you to make the decision on which sacrifices you are prepared to make. No one else can make that decision for you.

Your spending can be placed in two categories, your needs and your wants. You may be able to reduce some of the money you spend on your needs but it is the money you spend on your wants which you may find easier to eliminate. 

Being able to afford whatever it is you need can be as simple as re prioritizing your spending. It is a matter of transferring your spending from one item to another.

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