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Are Solar Panels a good investment?

Are Solar Panels a good investment?

Written by R. A. Stewart

It all depends on what you value and whether you expect to benefit from it because there are factors which promoters of solar panels have not considered.

It has been said that solar panels will pay for themselves in over 7 years..

This may be fine for someone young who has time on their side, but is it worthwhile for a retired person to install solar panels? I don’t think so. A person aged 65 will be 72 before the system has paid for itself and a lot of people will not make it to that age. Another factor to consider is that a lot of marriages do not even last 7 years which means that a couple will not get any benefit from the money they have spent.

Most homeowners do not have the money required to be able to install solar panels and, therefore, borrow money for this. This is bad practice in my book and should not be encouraged. 

Going into debt in order to save money in bad money management. It is called, “Dumb Debt.”

The interest payments will cancel out the savings from solar. 

Politicians who encourage this need to have their heads examined. The New Zealand Green Party put forth a scheme where people are able to get loans to install solar panels. This is the same political party which champions the rights of the poor.

Another factor which has not been considered is the amount of income which could have been generated from a sum of money if it were invested in managed funds or your retirement scheme instead. This is never talked about.

Personally, I believe that homeowners are better off investing that money instead in something such as kiwisaver or a similar type of scheme if you are not from New Zealand.

Another question which homeowners should ask is, “Will solar panels increase the value of my home?

There is no evidence that it will. Who on earth buys a home just because it has solar panels on it?

Installing solar panels can cost between 8 and 30 grand depending on its features. It is not known if this is just for the cost of the panels or whether labour is included.

Installing solar panels may or may not be a good idea for the young ones, but for the older generation it is hard to see any justification for it since they have less time to recoup their outlay in savings.

It is important for retired folk to discuss it all with younger members of their family and to not let any salesman talk them into signing across the dotted line.

About this article: The opinions expressed in this article may not be applicable to your personal circumstances, and therefore discretion is advised. You may use this article as content for your blog/website, or ebook.

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 Reasons why people remain Poor

 

Written by R. A. Stewart

People don’t just become prosperous for no reason, unless of course they win the lottery and for every person like that there are millions who didn’t win the lottery and go back to their mediocre lives until the next draw.

Here are the main reasons why people remain poor.

  1. Unwillingness to change

People tolerate their financial situation because they are more comfortable with it. They are unwilling to change anything in their life for fear that it will interfere with the routine which they have become accustomed to. Not doing anything about one’s financial situation despite the facts is just plain laziness. It shows a lack of ambition and there is no hope for people like that.

  1. Lack of Financial literacy

Lack of financial literacy is a major cause of financial struggles. This is an easy hurdle to overcome because there are lots of books on personal finance available you can read and you do not have to spend a lot of money to purchase such books. Your local library will have plenty of books on the subject. Frances Cook, Mary Holm, and Martin Hawes are New Zealand authors who have published excellent books on personal finance.

  1. They don’t join kiwisaver

Kiwisaver is the New Zealand retirement scheme. It is a scheme with several incentives such as the $520 per annum top up from the government. Not making any plans for your retirement years will almost guarantee that you will spend these years in poverty. “If you fail to plan, you plan to fail” is a saying which is worth remembering. Responsible people will sign up for a retirement plan of some kind. If you have dependents it is your responsibility to make sure you don’t leave them up the creek if something happens to you so don’t use that argument of, “I may not make it to 65.”

  1. They spend everything

Poor people spend everything they make and do not give any thought to tomorrow. Whether you like it or not, tomorrow always comes. People like this have no vision for the future. They can never see any further than next week’s pay day. If an unexpected bill arrives such as a car breakdown they borrow the money which means that the interest they owe on the borrowed money pushes up the cost of the repairs. It is the same when one of their kids needs a pair of new spectacles. People such as this always have money to spend on lottery tickets or alcohol but the really important things in life take a back seat. Some people would rather spend money on cigarettes than wholesome food for their kids.

  1. They don’t invest

Not investing is a sure fire way to stay poor because inflation erodes the purchasing power of your money if you just leave it in an ordinary savings account. Investing your money in managed funds increases your wealth and your financial literacy. 

  1. Wrong friends

Associating with people who are financially illiterate is another reason why some people remain poor. The poverty mindset of the group will infect you sooner or later. Some of the stupid comments made by some of these people regarding personal finance are not worth listening to. 

  1. Wrong choices

Making wrong choices is at the heart of the reason why most people are poor. It is not just choices in terms of personal finance such as joining KiwiSaver and investing which keep people poor but life choices such as having kids when not in a good financial position and living beyond their means. What you do with your discretionary spending money is a choice. Becoming financially sorted requires vision. Some of life’s most expensive items will arrive at some stage and the person with vision will prepare for these.

About this article

The subject matter is of the writer’s own experience and opinion and may not be applicable to your personal circumstances, therefore discretion is advised. You may use the article as content for your website/blog or ebook. Read my other articles on www.robertastewart.com

“Retire with Little Money” is your guide to achieving financial freedom, even if you don’t have a large retirement fund. This practical ebook reveals creative strategies and smart budgeting tips to help you retire comfortably on a modest income. Learn how to cut unnecessary expenses, boost your savings with side gigs, and make the most of the resources available to you. With easy-to-follow advice and real-life examples, this book shows you how to build a sustainable retirement plan without relying on a hefty nest egg. Start planning today, and discover how you can retire sooner than you think!

 

https://robertalan.gumroad.com/l/sdzvl

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Should I get involved with Cryptocurrency

 

Written by R. A. Stewart

Cryptocurrency has been around for over a decade and has received a lot of publicity, not all of it positive, therefore it is assumed that if you are reading this you will be aware of what it is and no further explanation is required.

If you are thinking about investing in cryptocurrency there are some questions you need to ask yourself before proceeding. Here they are:

  1. Why are you investing in this?

Be honest! Are you investing in Bitcoin because you are hoping that the price will skyrocket and you will get rich as a result? This is as good a reason to invest in something just as long as you can afford to lose your investment. Investing in bitcoin should only be done with discretionary spending money. That is money you would have spent on an overseas trip, on nights out, or your hobbies. In other words; transfer your discretionary money to bitcoin investments. That way, if you lose your money, then there is no harm done.

  1. How does this fit in with my future?

This applies to whatever you are investing in. What is the purpose of this investment? Is it for the long term, medium term, or short term. Bitcoin does not fit into any of these categories because it is too volatile. Bitcoin should never be used as a substitute for your retirement fund but rather, just as an added string to your financial bow.

  1. Can I afford to lose this money?

A most important question. Only discretionary spending money should be used for purchasing cryptocurrency; that is money which you can fully afford to lose. Examples of discretionary spending money is money spent on gambling such as horse racing or the lottery, travels, alcohol, cigarettes, and non essential consumable items. It is just a matter of diverting some of your discretionary spending money in cryptocurrency. 

  1. Is this money better off invested elsewhere?

Are there any other areas where you are better off investing your money other than cryptocurrency? If you have any kind of debt then you are definitely better off paying that off first. Some of your discretionary spending money can be used to make greater contributions to your retirement fund or to your house deposit account. Where you spend your discretionary spending money can make a real difference to your finances in the long run.

  1. Will I be able to handle the volatility?

It is no secret that Cryptocurrency is volatile; if you do not have the mentality to cope with all of that then you should give Bitcoin a wide berth and invest in something safer. Emotion will affect your judgement if you allow it to, and this applies to investing in the share market as well. 

Summary

The questions you must ask yourself before investing in cryptocurrency are:

  1. Why am I investing in this?

2.How does this fit in with my future?

  1. Can I afford to lose this money?
  2. Is this money better invested elsewhere?
  3. Will I be able to handle the volatility?

Once you are able to answer these questions truthfully, you will have a handle on whether you should invest in cryptocurrency.

About this article

The information provided is of the opinion of the writer and may not be applicable to your personal circumstances, therefore, discretion is advised. You may use this article as content for your blog, website, or ebook. Check out my other articles on www.robertastewart.com

 

“Retire with Little Money” is your guide to achieving financial freedom, even if you don’t have a large retirement fund. This practical ebook reveals creative strategies and smart budgeting tips to help you retire comfortably on a modest income. Learn how to cut unnecessary expenses, boost your savings with side gigs, and make the most of the resources available to you. With easy-to-follow advice and real-life examples, this book shows you how to build a sustainable retirement plan without relying on a hefty nest egg. Start planning today, and discover how you can retire sooner than you think!

 

https://robertalan.gumroad.com/l/sdzvl

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The cost of financial gifting

The cost of financial gifting

Written  by R. A. Stewart

Most parents want to help their children any way they can. It is the natural thing to do but there can be a high cost to this if your generosity is at the expense of your own needs and wants.

Here are some of the most common ways family’s make gifts.

House deposit

The New Zealand consumer magazine says that on average, parents gave $108,000 in 2022 to their children for house deposits. 62% of parents used their own savings. 

That money taken out of their own retirement savings will have a big impact on how much they will have when they retire. 

What parents need to consider is how much that money they are going to give to their children would be worth if they invested it in the markets. I am no mathematician but even so, know that this is an enormous amount of money that they are sacrificing. 

Some options need to be considered and one is guaranteeing the loan. If your son or daughter is able to take out the loan and parents guarantee the loan then this may be better. The parents still have their capital producing an income while at the same time their children are paying off the mortgage.

Early inheritance

It is good to leave an inheritance to your kids but not if they are just going to fritter it away and have nothing to show for it years later. After all, you were diligent enough to save and invest your money; if your kids have no interest in financial management then you are better off enjoying that money yourself or leaving it to a worthy cause. Another option is to have the money deposited into their kiwisaver so that they at least have the money when they reach the retirement age of 65. If your grown up children have learned to be responsible with their money then they will have their own kiwisaver account.

Getting your kids out of debt

Some parents will rescue their kids from debt time and again. It all depends on the circumstances of the debt. If your children have made a habit of getting into debt without learning how to manage without using credit then it is time for them to get budgeting advice. If it is you who have to make the sacrifices then it is time to put your foot down. 

Lending for businesses

Some folk approach mum and dad for loans to fund their business. If you lend money to your kids you are missing out on the capital gain that you would have had if that money was invested in the markets. It is also worth keeping in mind that most businesses fail within five years so that money could be gone in no time.

Lending for a wedding

The average cost of a wedding in New Zealand is around $30,000. It is a huge amount when you consider that most marriages don’t last the distance. If you stumped up the cash to pay for your child’s wedding, that $30,000 that you could have invested in your own retirement fund will mean that there will be a lot less money when you retire.

Educational loans

In New Zealand student loans are interest-free, so it just does not make sense to pay off your children’s educational loans when that same money could be invested and grown. Is it any wonder that student loan debts total over 2b in New Zealand. In 2021 there were over 14,000 kiwis who owed over $80,000. 

About this article

The information here is of the writer’s own opinion and may not be applicable to your personal circumstances, therefore, discretion is advised.

You may use this article as content for your website/blog or ebook.

Read my other articles on www.robertastewart.com

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Should the retired join Kiwisaver?

Should the retired join Kiwisaver?

Written by R. A. Stewart

Kiwisaver is New Zealand’s retirement scheme. It is a scheme which locks money in until the retiring age of 65. A change of rules to Kiwisaver in recent years has enabled those who have reached the retirement age of 65 and who are not already a member of Kiwisaver to join.

This leaves the question “Are there any advantages for anyone aged 65+ to join Kiwisaver?”

My answer to this question is “Yes”.

In fact there are several benefits of joining Kiwisaver after 65.

If someone is in such a financial position to be able to contribute to Kiwisaver at a later stage in life then why not? Any spare money which you have available for emergencies will help make your retirement easier as far as having an emergency fund.

If you access your bank account via the internet (Who doesn’t?) and use your phone to do your banking then having your savings in Kiwisaver will make it virtually impossible for scammers to get access to it. Kiwisaver members who have tried to access their funds which are in Kiwisaver have to jump through a few hoops to get it, including the over 65s.

At least it makes you a lot safer as the over 65s are prime targets for scammers and gold diggers.

There may not be any of the incentives such as the annual $520 government money available for the over 65s but it is still a good idea for retirees to hold on to their kiwisaver account and even contribute to it because any money which you have available acts as a financial shock and one of these is ill health which are more likely to happen to older people. Unexpected medical bills can be financially draining, therefore, having the funds can be less worrisome for the over 65s.

As a retiree you are given several options as to how you manage your kiwisaver which makes it very flexible.

You can withdraw all or some of your funds in kiwisaver.

You can opt out or opt in.

As you get older, medical bills can become a problem, therefore, any money you have behind you can make life less challenging for you.

What happens to your kiwisaver account when you pass on?

You can name any family member as beneficiaries of any money you have in kiwisaver. It will be treated just like any other asset you own as far as your estate goes and if you do not have a will then it is likely that legal fees wil;l take up a portion of your assets as the legal process will decide who gets what.

Having a will will make this part of your family’s life easier toi deal with.

About this article

THe information provided may not be applicable to your personal circumstances therefore discretion is advised. You may use this article as content for your blog or website. Check out my other articles on www.robertastewart.com

Check out the ebook “Retire with Money” only $5

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What are Measurable Goals?

What are Measurable Goals?

Written by R. A. Stewart

Have you ever set a goal, poured your heart and soul into it and still failed to achieve your goal, leaving you unfulfilled and disappointed?

It could be that you have set a goal which is vague and lacks clarity. 

The solution is to set goals which are measurable.

What is a measurable goal?

Setting measurable goals allows you to create a clear road map that allows you to track your progress and allow you to celebrate each achievement.

Vague Goal Versus Measurable Goal

A vague goal is “Lose weight”

A measurable goal is, “To lose 5kgs in 30 days.”

This kind of goal tells you what kind of outcome you are seeking. 

A vague goal is, “Get fit”

A measurable goal, “Is to complete a 5k fun run by 1 February. 

Once you have clearly specified your goal and measured it, it is time to set sub goals.

A lose weight sub goal could be to eliminate all fizzy drinks from your diet.

A goal of, “To complete the Park Run at such and such city this Saturday” is a measurable goal. It tells you what you need to do and when.

If your fitness is such that you need to start training in order to make this goal a reality then you will have a much longer time frame of say, 4-6 weeks, but your more immediate goals will be to run x number of miles per week and increase your mileage as your fitness levels increase.

Run more and your capacity to run longer distances will increase. It is all about the mileage.

Less active people have the capacity to do less exercise. It is the old story of “Use it or lose it.”

Other examples of measurable goals are:

Increase my Youtube subscriber count from 1,000 to 1,500 by February 28.

Save $5,000 for my airfare to the UK by December 31

Invest $1,000 into my retirement fund by June 30

Run 1 mile without stopping for a rest within 6 weeks.

Apply for at least 5 jobs in the xxx industry every week

Increase website traffic by 20% by April 2025

Run a 5k road race in under 30 minutes by March

Read one book a month by the end of the year

Learn 100 new words in a foreign language by June

Write one new article per week

List 3 new products in my etsy/ebay/amazon store per week.

This is a general idea of how to frame your goals so that they are measurable. You are more likely to achieve whatever you are aiming for if you are specific and put a time frame on it.

About this article

You may use this article as content for your blog/website or ebook. 

Check out my other articles on www.robertastewart.com

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Kiwisaver for kids: what you should know

Kiwisaver for kids: what you should know

Written by R. A. Stewart

Some people may be asking if they should sign their kids up for kiwisaver. My answer to that question is a resounding “Yes” though some people might have a different opinion.

Kiwisaver is New Zealand’s retirement scheme. Anyone who is a New Zealand resident or citizen can join and take full advantage of the incentives the government provides for members of kiwisaver. There is no age restriction. Anyone can join from newborn to those already in retirement. However, the incentives do not kick in until a child reaches the age of 18 and stop at age 65, the retirement age in New Zealand.

An under eighteen year old or over sixty five year old in employment can make contributions toward their kiwisaver through their wages; this could be 2%, 3%, 4%, or 8% of their gross wages but their employer has no obligation to contribute to their kiwisaver, even though some choose to.

There is the option of making voluntary contributions toward kiwisaver and this is something which a lot of people do.

What are the benefits of someone under eighteen signing up for kiwisaver?

There are many and the number one reason is that it will improve a child’s financial literacy. It will help them understand how the markets operate and why their kiwisaver balances go up and down.

Another benefit of kids joining kiwisaver early is that it will give their relatives an opportunity to contribute to their kiwisaver; this means that by the time a child reaches eighteen, they may have  a more than useful kiwisaver balance. 

It is possible to use some of your kiwisaver to purchase your first home but you have to have contributed towards the kiwisaver for at least five years. It is not known if the years prior to a member’s eighteenth birthday count. Generally, most home deposit withdrawals are made by those aged over thirty so it may not be such a big deal.

Those aged under 30 are able to access their kiwisaver for a rental bond. The bond is returned to the kiwisaver account after it is returned by the landlord.

The other ways kiwisaver can be accessed prior to turning 65 is in the case of a terminal illness or going overseas permanently. Many folk have made kiwisaver withdrawals due to hardship and this number has increased during the Global Financial Crisis but it should only be as a last resort.

Investors have to go through a lot of hoops in order to access their retirement savings prior to retiring. The purpose of kiwisaver is to build a nest egg for your retirement and to access it early really defeats the purpose of it.

Some people argue, “You can’t take it all with you,” or “I am young.” This kind of thing will lead to certain outcomes. You will be dead and leave your family with financial issues to deal with or you will be broke. The habit of saving money is a habit which will enable you to get the most out of life and the sooner this habit is formed the better off your kids will be in the long run.

Their future self will thank them for it.

About this article: You may use this article as content for your blog/website or ebook. The information in this article is of the writer’s own opinion and may not be applicable to your own personal circumstances., therefore, discretion is advised.

Check out my other articles on www.robertastewart.com

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Dumb Debt is costly

The quickest way to a financial mess is to borrow for stuff that loses it’s value. You not only pay more for such items but the item is worth less than when you acquired it because it is no longer new once you take possession of it and therefore you will receive less than what you paid for it. This is called “Dumb Debt.”

Avoiding Dumb Debt at all costs

Written by R. A. Stewart

Everyone has seen the television commercials with slogans such as “Buy now pay later,” and the like.

You do not need to save your money to buy that new car, a wide screen TV, that latest smartphone, or a holiday in a tropical island when you can have all these things now. 

Instant gratification is a very expensive habit; one that will lead you to a life of financial challenges.

There have been misleading statements in some of the advertising; one I saw read, “Helping you to get ahead.”

That kind of slogan suggests that the finance company is doing borrowers a favour which is far from the truth.

Loan sharks and finance companies thrive on financial ignorance; a person with even a basic grounding in personal finance will avoid loan sharks as if they had tested positive for covid.

One should ascertain whether the item is a want or a need before signing on the dotted line. 

Many people go into debt because they want to live a champagne lifestyle on a lemonade budget just to impress their friends. They are not happy with living modestly. 

An expensive lifestyle is costly in the long run. 

The parable of the prodigal son is a perfect example. Here was a young man who blew his inheritance on wasteful living and ended up living in poverty due to his lifestyle.

He not only blew his inheritance but was most likely living on credit.

It is borrowing that really kills off a person’s chances of financial success. That interest rate is dead money; it is the cost of borrowing.

Paying interest on stuff you have bought on credit adds to the cost of it and the value of a lot of stuff bought on credit is worth less as soon as you take possession of it.

“If you don’t have the money you don’t buy it,” is a simple philosophy to adopt.

What you think you cannot live without is something others have learned to live without. 

It all comes down to the choices we make.

There are some circumstances when it may be wise to borrow such as when the value of the item you are purchasing is going to make it financially worthwhile such as a student loan. This may or may not mean you will get a good paying job but you must be absolutely clear that it is what you want to do otherwise the course will be a total waste of money.

ABOUT THIS ARTICLE

Feel free to use this article as content for your website, blog, or ebook. Check out my other articles on www.robertastewart.com

Disclaimer: The information in this article may not be applicable to your personal circumstances therefore discretion is advised. I may receive a small commission if you make a purchase from any of the links you click on.

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From Dreams to Dollars: How to Set Effective Money Goals

“From Dreams to Dollars: How to Set Effective Money Goals”

Written by R. A. Stewart

Having a goal for your money is a must if you want to get ahead otherwise you will just simply fritter away your money on useless stuff which does not add value to your life.

Your money fits three descriptions; they are:

Short-term money (12 months or less)

Medium-term money (1-5 years)

Long-term money (6 years+)

Short term money is money you need for the short term. This is money used for emergencies, dental  costs, and every day expenses. It is a good idea to keep a separate account for emergencies. An investment in conservative managed funds if you have easy access to the money when you need it. A separate savings account for this is suitable.

Medium-term money is money needed within 5 years. This could be savings for a car or an overseas  holiday. 

Long-term money is money needed in the long-term. This is money for your retirement or savings for a mortgage.

Where should you invest your money?

Short-term money is best invested in an ordinary savings account where your money is on call, however, an emergency fund could be invested in a conservative managed fund providing you have easy access to your money if and when you need it.

Medium-term money is best invested in a balanced managed fund.

Long-term money is best invested in growth funds.

There is no hard and fast rule as to where you should invest your money; it all depends on your risk profile and whether you have the mental fortitude to ride out the lows of the share market.

The benefits of being a saver and an investor cannot be underestimated. A saver will live within their means and wait until they have saved enough money before making a car purchase.

A spender will have nothing to show for their labours and borrows money for things they need. There is a cost to this and that is interest which means that the spender pays more for stuff they have bought with borrowed money.

Discretionary spending money is a different category of money. It is money which you are free to spend on anything you like. Some investors like to use this to increase their financial portfolio or even to try out some speculative investments such as Bitcoin and other cryptocurrency. 

People who have any kind of debt do not have any discretionary spending money until that debt is paid. Paying off debts is the responsible thing to do.

It is imperative that you manage your money with the future in mind because situations will arise when you will need a large amount of money for things which your next paycheck on its own won’t cover. Ask yourself this question, “What can I do today that my future self will thank me for?”

It is also important to continually gain financial literacy by reading books about financial management and wealth creation, but the best way to gain financial literacy is by investing in the share market. There are several share market investing platforms on the internet which enable ordinary people to drip feed money into the share market or in managed (mutual) funds. 

Don’t be afraid of making mistakes because as the saying goes, “He who never made a mistake never made anything.” Mistakes are just part of the learning process.

About this article

The opinions expressed in this article are of the writer’s own opinion and may not be applicable to your personal circumstances, therefore discretion is advised.

You may use this article as content for your blog, website, or ebook.

Read my other articles on www.robertastewart.com

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How to write Specific Goals

How to write Specific Goals

Written by R. A. Stewart

A specific goal is a goal which is specific in details. An example of a specific goal is “Lose 5 kilos by  1st February.”

You have achieved your goal or failed to achieve it.

A vague goal which is not specific is, “Lose weight,” because there is no way of knowing when you have achieved the goal.

Sure, you may lose weight, but there is more satisfaction in knowing that you have achieved a target.

Imagine two footballers who have set their own goal, one a goal to score more goals and the other to score xx number of goals by the time the season is over. Which footballer will be more motivated to go after his goal?

There are several parts of setting and achieving specific goals. They are:

  1. Set specific Goals

Setting specific goals is similar to catching a bus. In order to get to your desired destination you have to tell the driver where you are travelling to. If you just told the driver you want to go somewhere nice then the driver cannot sell you a ticket unless you are specific. 

  1. Set smaller bite-sized Goals

You may not be able to save the money you need for a holiday from just one payday but you can do it by saving a small amount per payday. Your Specific goal is to save x amount of money for your holiday. Your sub goal is to save x amount per week or fortnightly.

3-Describe the goal in detail

Give a description of what you want. If it is a new car you are saving for then specify what features you want in the vehicle. If any vehicle that is adequate for your requirements is what you want then that is fine, so long as it is what you want.

4-Use mental pictures of your desired outcome.

Imagine yourself achieving your goal. Gather pictures from magazines of the desired outcome. 

5-Have mentors

If you have sporting ambitions then follow the best players of your chosen sport. It is certain that those players who you look up to had players from the previous generation who they themselves looked up to.

About this article: You may use this article as content for your blog/website or ebook. 

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