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Invest and Forget

Invest and Forget

Written by R. A. Stewart

I know a couple of people who have money invested in the share market and keep track of how their investments are going by checking up on their shares online just about everyday. I told them that I just invest in such and such and then just forget about them. 

For me, there is no point in worrying about how your share portfolio is going because what the markets are doing is out of my control.

If you have chosen where to invest your money and it is in line with your values, your goals, and your risk profile then what the markets are doing should not be a concern for you.

Financial experts will tell you that if you are investing for the long-term, 10 years plus, you should be a little more aggressive with your investing.

Some investors get panicky when the markets are down and shift funds. Then what happens next is that they miss out on the gains which would regained their previous losses, if you can call it that, because these are just paper losses. They are temporary, but if you decide to sell when your shares are down or switch to conservative funds then these losses are locked in.

Some investors change fund managers because their funds are not doing well. It is worth noting that past record is no guarantee of future performance, so even if a particular fund manager out performed all others this year it does not necessarily mean that they will continue this trend.

If you have chosen which fund type to invest in then how the markets are performing should not be an issue.

Your savings goals can be categorised in one of three goals; they are:

Long-term goals

Medium term goals

Short term goals

Long-term goals are money which is not needed for 5 years+. Retirement savings and house deposit savings are examples of long-term goals.

Medium-term goals are money not needed for 1-5 years. Saving for a car or the trip of a life-time fall into this category.

Short-term goals are money needed within 12 months. This could be your emergency fund set up for unexpected expenses such as an appliance or car breaking down. School expenses, etc.

There is no one shoe which fits everyone, therefore it is up to each individual or couple to set up their own financial plan according to their goals and personal circumstances.

Which funds are best for you?

There are three types of funds to choose from when you invest in a managed fund, also called mutual funds. They are:

Growth funds

Balanced funds

Conservative funds.

Growth funds have the most potential to grow your wealth but are the riskiest. They are for long-term investing. It is suitable for young people because they have more time to recover from a market meltdown.

Balanced funds are a combination of growth and conservative funds. They have the potential to grow your funds but are not as risky as growth funds. 

Conservative funds are safer than growth and balanced funds but are not as profitable. They are more suitable for short and medium-term investing depending on how much risk you are prepared to take on.

Once you have chosen where to invest your money, you should just get on with your life and turn your attention to other things. In other words, “Invest and Forget,” because what happens in the money markets is out of your control.

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

Read my other articles on www.robertastewart.com

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How to Create a Travel Budget

Traveling is one of life’s greatest investments, but nothing kills a “vacation high” faster than returning home to a drained bank account. Creating a travel budget isn’t about restricting your fun; it’s about allocating your resources so you can enjoy your trip without the nagging ghost of financial stress.

Here is how to build a realistic, foolproof travel budget from the ground up.

1. Determine Your “Big Three” Costs

Before you look at the price of a gelato in Rome, you need to tackle the pillars of travel spending. These usually account for 70% of your total expenses.

  • Transportation: This includes international flights, trains between cities, and car rentals.
  • Accommodation: Research the average nightly rate for your preferred style (hostels, mid-range hotels, or luxury rentals).
  • Major Activities: If you know you’re doing a $300 hot air balloon ride in Cappadocia, put that in the budget now.

2. Estimate Daily Living Expenses

This is where most travelers lowball their estimates. To get a realistic number, break your daily spending into three categories:

Category What it Covers Pro-Tip
Food & Drink Street food, sit-down dinners, and morning lattes. Check menus on Google Maps beforehand.
Local Transport Metros, Ubers, or bike rentals. Buy a multi-day transit pass to save.
Spontaneous Fun Museum entries, souvenirs, and “that looks cool” stops. Budget 15% more than you think you need.

3. Don’t Forget the “Invisible” Costs

“Hidden” fees are the silent killers of a travel budget. If you don’t account for these, you’ll find yourself $200 in the hole before you even leave the airport.

  • Visas and Entry Fees: Some countries require a paid visa or reciprocity fee.
  • Travel Insurance: A non-negotiable. It might cost $50–$100, but it saves you thousands in a medical emergency.
  • Connectivity: International eSims or roaming charges.
  • Transaction Fees: Check if your credit card charges a 3% foreign transaction fee. If it does, consider switching cards before you fly.

4. Use the “Buffer” Strategy

In the world of travel, things go wrong. A flight gets delayed, you miss a train, or you find a local leather shop that you simply cannot ignore.

The Golden Rule: Calculate your total estimated cost, then add a 10–15% “Buffer Fund.” This turns a “financial disaster” into a “minor inconvenience.”

5. Reverse-Engineer Your Savings Plan

Once you have your total number—let’s say it’s $3,000—divide that by the number of months until your trip. If you’re traveling in six months, you need to squirrel away $500 per month.

If that number feels too high, you have two choices:

  1. Extend the timeline: Push the trip back three months.
  2. Adjust the scope: Trade the four-star hotel for a boutique hostel or choose a more affordable destination.

6. Track in Real-Time

A budget is only useful if you follow it. Use apps like TravelSpend or Splitwise (if traveling with friends) to log expenses as you go. Seeing the numbers climb in real-time prevents that “oops, I spent my last $400 on a rug” moment at the end of the week.

Final Thoughts

A great budget doesn’t mean being cheap; it means being intentional. By planning for the essentials and padding for the unexpected, you give yourself the ultimate travel luxury: peace of mind.

Check these travel planners on etsy:

https://thebigoe.etsy.com/nz/listing/4452614658/wanderlust-wallet-professional-travel

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Investing in Risk and Reward and how it affects you

Written by R. A. Stewart

In life people get involved in what are considered to be dangerous activities. Being a jockey or a racing car driver are such activities but there are protocols in place to mitigate the risks. If a horse slips after a race the jockeys will examine the track in order to ascertain whether it is safe enough to proceed with the race meeting. If they are not satisfied, the meeting is abandoned.

It is called “risk management.”

Investing is similar. Investors will weigh up the pros or cons of a certain investment or their fund manager will do this for them and will then make a decision on whether the company is worth investing in.

Investors need to know the difference between a permanent and a temporary loss.

You can have two investors which have shares in the same company, but they react differently to what is happening in the market. One investor panics after the company’s share price drops so has suffered a permanent loss, the other investor holds on to his shares and when the company’s share price rebounds he has recouped his losses. The second investor suffered a temporary loss.

If you have invested according to your risk-profile then what the market is doing should not be a concern to you.

It is important to keep your emotions in check, otherwise they can end up costing you in the long-term.

When investing you want the right amount of risk and that all depends on when you need the money. You can be more aggressive with your retirement savings if you have at least 10 years to go but if the money is needed within 5 years then you need to be a little more cautious because what you do not need is for the markets to drop just when you need the money.

Time can work for and against you in terms of what you do with your money. If you are young then you have the advantage of time on your side. You can be more aggressive in your choice of where to invest your money because you have more time to recover from financial hits. But you have to be prepared to take calculated risks in order to take advantage of the rising markets.

At the other extreme, being too safe and over cautious is not good because inflation will erode the purchasing power of your savings. Leaving your money in an ordinary savings account may be fine for money you need in the short-term but it is not appropriate for long-term savings.

Investing is a balancing between risk and reward. It is important to stick with your plan despite what the markets are doing because panic selling when the markets are down will turn a temporary loss into a permanent one. This means that those investors who sell their shares during a market downturn will miss out on the gains when the market recovers.

If you want to get involved in any kind of dangerous activity, think about the risk and how it will affect your future lifestyle if it all goes pear-shaped, and most of all how much risk you can tolerate.   Never let a temporary loss become a permanent one.

ABOUT THIS ARTICLE

The contents of this article are 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. Read my other articles on www.robertastewart.com 

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The Advantages of Saving Money

The Advantages of Saving Money

Written by R. A. Stewart

“It is not how much you receive but rather what you do with it after you receive it.”

The benefits of saving a portion of whatever you receive cannot be understated. We all have a choice in what we do with our money and unless you are being controlled by someone else then your choice of what happens to your money is the major influencer of your long term financial wealth.

It is the choices you make in life which will have a major influence on your financial outcome. That is the choice of entering into a relationship, the choice to purchase a car, and so forth. In many instances there are people who bleat about the cost of living crisis but at the end of the day their situation is often their own making.

It is all about priorities. 

It can be said that stupidity is one reason for poor financial outcomes. I mean how else do you explain why there are people who are subscribed to Netflix and satellite TV, but have not joined Kiwisaver, New Zealand’s retirement scheme.

Saving for something and not just for the sake of it will give your life some purpose.

If you are wondering what to save for, here are several ideas:

  1. Your retirement
  2. An emergency fund
  3. An education fund
  4. Travel
  5. Major Purchases
  6. Your Hobbies
  7. Your Wedding
  8. Home repairs
  9. Start a business

There is a stark difference between saving to build up your wealth and saving to spend. When you are saving to build up your asset base you are increasing your resilience to life’s financial shocks. Saving to spend means that you are back to square one once your money is gone. This is particularly so when it comes to travel. 

Other expenses such as further education can be a good investment but you have to be sure that it is what you really want to do otherwise it will be just a waste of time and money.

Setting up an emergency fund is an excellent way of having money available for unexpected expenses which may crop up from time to time. 

Home repairs may add value to your home but it all depends on your priorities. Retired people may prefer to spend that money on travel.

Here is something to think about:

Having your assets in the share market means that your assets can be quickly turned back into cash when you need it. This is not the case with property which may take months to sell.

Another thing to consider with property is that many of the home improvements may not even increase the valuation of the property which means that it is money which is spent with no return.

Saving and investing money is a good habit to get into, it leads to a more prosperous future. Borrowing money and getting into debt is a bad habit which can lead to a poor financial outcome. Even if you do manage to pay everything by the due date, you have to consider whether you are making the right choices in your choice of lifestyle.

Paying interest on borrowed money over a lifetime is an expensive way to purchase stuff. It is better to save up for things rather than borrow, that way you will pay the retail price of whatever it is you are purchasing.

The bottom line is that living within your means is the key to managing your money successfully and that requires discipline.

Read my other articles on www.robertastewart.com

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Exploring the Pros and Cons of Utilizing Expedia for Travel

In today’s digital age, planning a trip has become more accessible than ever before, thanks to a myriad of online travel agencies (OTAs). Expedia stands out as one of the most prominent players in this field, offering a vast array of travel services from flights and hotels to car rentals and vacation packages. While Expedia undoubtedly simplifies the travel booking process, it comes with its own set of advantages and drawbacks that travelers should consider before making their reservations.

Pros:

  • Convenience:  Expedia provides a one-stop platform where travelers can browse and book flights, accommodations, and activities all in one place. This convenience saves time and effort compared to visiting multiple websites or contacting individual service providers separately.
  • Competitive Pricing: Expedia often offers competitive pricing due to its ability to negotiate deals with airlines, hotels, and other travel suppliers. The platform frequently features discounted rates, special promotions, and bundled packages, allowing travelers to find cost-effective options for their trips.
  • User-Friendly Interface: Expedia’s website and mobile app are user-friendly, featuring intuitive navigation and search functionalities. Travelers can easily filter search results based on their preferences, such as price range, location, and amenities, making it simpler to find accommodations and flights that meet their specific needs.
  • Reviews and Ratings: Expedia aggregates reviews and ratings from verified travelers, providing valuable insights into the quality and reliability of accommodations, airlines, and activities. These reviews help users make informed decisions and choose options that align with their expectations.
  • Customer Support: Expedia offers customer support services to assist travelers with booking inquiries, itinerary changes, and other issues that may arise before, during, or after their trip. This support can be accessed through various channels, including phone, email, and live chat, providing peace of mind to travelers facing unforeseen circumstances.
  • Check out some great travel bargains here

Cons:

  • Hidden Fees and Restrictions: While Expedia advertises competitive prices, travelers may encounter hidden fees, such as booking fees, resort fees, or additional charges for amenities. Moreover, some bookings may come with restrictive terms and conditions, such as non-refundable rates or strict cancellation policies, which can lead to unexpected expenses or inconvenience.
  • Limited Customization: Despite offering a wide range of options, Expedia’s customization capabilities may be limited compared to booking directly with airlines or hotels. Travelers with specific preferences or requirements may find it challenging to tailor their bookings precisely to their needs, potentially compromising their overall travel experience.
  • Dependency on Technology: Relying solely on Expedia for travel bookings introduces a level of dependency on technology. In the event of technical glitches, server outages, or connectivity issues, travelers may encounter difficulties accessing their reservations, making changes, or obtaining assistance, which can be particularly stressful when traveling.
  • Lack of Personalized Service: While Expedia provides convenient self-service options, it may lack the personalized touch offered by traditional travel agencies or direct bookings. Travelers seeking expert advice, customized itineraries, or personalized recommendations may feel underserved by Expedia’s automated platform.
  • Potential for Overbooking or Errors: Like any online booking platform, Expedia is susceptible to errors, including overbooking, incorrect listings, or discrepancies between what is advertised and what is actually available. Travelers may encounter frustration or inconvenience if they arrive at their destination only to discover discrepancies between their expectations and the actual accommodations or services provided.
  • Check out some great travel bargains here

In conclusion, Expedia offers a convenient and cost-effective solution for travelers looking to book flights, accommodations, and activities online. However, it’s essential for travelers to weigh the pros and cons carefully and consider their individual preferences, priorities, and travel requirements before relying solely on Expedia for their trip planning needs. By understanding the advantages and limitations of using Expedia, travelers can make informed decisions to ensure a smooth and enjoyable travel experience.

Discover more about Expedia in the link below:

Check out some great travel bargains here

 

Sign up for Expedia here

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4 Keys to Financial Success

 

There are rules to getting the most out of your money and these rules apply to everybody irrespective of your personal circumstances, stage of life, or goals. They are basic common sense.

  1. Live within your means

This is the most basic money management rule. If you do not follow this rule then you are going to struggle to get ahead financially. There are several reasons why people do not live within their means. The main ones are:

(a) Their income does not match their lifestyle

Some people have a lifestyle which is not compatible with their income level and so they overspend or they spend everything they earn with the result that there is nothing to show for their labours. The easy solution is to be more modest in your lifestyle choice. Cutting out things which do not add any kind of value to your life.

(b) Easy access to credit

Easy access for credit has enabled people to bury their heads in the sand rather than confront their financial issues. After all, if you want something then just put it on the plastic. There is a cost to all of this credit and it is called “Interest.”

(c) Lack of self control

Lack of self control is the main factor why people do not live within their means. Being able to say “No” to things you want will stand you in good stead. 

  1. Save

The habit of saving is a habit which will open doors for you as far as being able to afford things. It means that you do not have to borrow money for basic household appliances or a motor vehicle if one is needed. The money saved by not paying interest on these things add up to a fortune during one’s lifetime.

  1. Invest

Investing your money will enable your wealth to grow. Today, there are so many opportunities for those of modest means to invest with so many online investing platforms available. Sharesies and Hatch are excellent online platforms where investors can drip feed money into the share market. Most people in New Zealand have money invested in Kiwisaver. This is New Zealand’s retirement scheme. The annual tax credit and the employer contributions make this the best way of saving for your retirement. Even if these incentives were not available, Kiwisaver would still be a brilliant scheme even without the government money and employer contributions, because funds are locked up until you reach the retirement age of 65.

  1. Make right choices

It is important to make the right choices in order to live a more prosperous life. If you are on the minimum wage then your options are limited as far as what you can afford and the choice to get married, have kids, or buy a car is among those choices which cannot be taken lightly. It is all about making choices which align with your income level and your goals.

I am not saying that you should not get involved with someone if you are on a low income, but rather make sure that you are in a good financial position before you make major life decisions.

About this article

The information in 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 this article as content for your blog/website or ebook.

Read my other articles on www.robertastewart.com

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How to get the most out of your Kiwisaver this year

How to get the most out of your Kiwisaver this year

Are you getting the most out of your Kiwisaver? 

Here are the main ways of making the most out of your Kiwisaver. If you live in a country outside of New Zealand then some of these points may not be applicable to you.

  1. Claim your full tax credits

The government will pay you $260 every July as an incentive for contributing to Kiwisaver, but to claim this amount you must deposit at least $1,040 every year. This needs to be the goal for everyone who is in Kiwisaver.

Women have breaks in their employment to have kids and often miss out on the government tax-credits. It makes sense for husbands to make voluntary deposits into their wife’s Kiwisaver to ensure that she makes the minimum deposit of $1,040 in order to qualify for the $260 annual tax credit.

  1. Choose the right fund

Choosing the right fund can help your savings grow and grow in the long term. If you are too conservative then you are going to leave yourself short-changed by the time you retire. Retirement savings are considered a long-term investment if you have at least ten years before you retire, however, if you intend to continue working after you reach the age of 65, then you may wish to stick with growth/balanced funds. It all boils down to the risk you are willing to accept and whether a market downturn is going to affect your lifestyle.

You may have your kiwisaver invested in growth funds, but that does not mean that other investments should also be in growth funds. It all depends on your timeline and when you may need the money. If you need the money within five years then it may pay to take a more cautious approach and invest conservatively.

  1. Invest what you can

If you are not employed or are self-employed and can afford to make voluntary contributions into your Kiwisaver then do so by all means. Your future self will thank you for it. Think of what you spend your money on which does not provide you with any value. This could be diverted into your retirement fund instead. 

  1. Check what your contributing

Employers have the option of paying in 3% up to 10% of their gross wages into their Kiwisaver. If you have not nominated how much then you’re probably putting in the minimum amount of 3%. 

  1. Start young

If you have children then it is important that you teach them good financial habits. That is saving for the future. As far as Kiwisaver goes, the age of qualification for the Kiwisaver tax credits has been lowered to 16. This will give youngsters extra motivation to join. 

Saving for your future needs takes vision and is the responsible thing to do and with Kiwisaver you have a scheme which will take care of your needs in later life, providing that you keep contributing during your working life.

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

Read my other articles on www.robertastewart.com

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Why Having a Will is Important

Having a will is important

Written by R. A. Stewart

Having a will is important. It will ensure that your estate is distributed according to your wishes. A will is considered to be one of the most important documents you can have in place. You can appoint some trusted person such as a spouse or other family member to carry out your wishes for you. You can outline your wishes in your will such as whether you want to be cremated or buried, and any other details you wish to add.

Your will allows you to make bequests which is the gifting of property and money to specified organisations or money. There are many forms of bequests, they can be split into three categories:

  1. Specific bequests-which is the gift of something distinguishable such as money, property, a vehicle, or stuff you own.
  2. Residuary bequest-a gift of whatever remains after previous gifts have been distributed.
  3. Whole estate-a gifting of your entire estate.

What are the consequences of not having a will?

One is that a lawyer will be appointed to handle your affairs which means that a chunk of your estate will be gone in lawyers fees.

The second and main thing to consider is that if you don’t have a will, your property, whether that is in the form of money, home, car, and whatever you own will be distributed in line with the Administration Act 1969 which outlines who is entitled to your estate based on their relationship to you. The order of priority is:

  1. Your spouse, civil union partner, or de facto partner are first in line, then
  2. Children (regardless of whether the parents of the children were married).
  3. Parents
  4. Siblings
  5. Grandparents
  6. Uncles and aunts

If none of these are applicable then the New Zealand government will receive everything from the estate.

In New Zealand, when someone has been living in a de facto relationship with someone for three years or more then both parties will receive an equal share of the assets if the relationship splits up. It is not known how this applies when deciding who gets what if one of them dies before the three years is up. Best to get advice on this.

As for your kiwisaver; that is part of your assets which will be distributed to your heirs.

There are many reasons why having a will is important and the main one is that the wrong people may receive some of your estate.

Would you like it if some ratbag who is a drug addict or alcoholic received your assets after you die? The question has to be asked, “What will such and such do with your assets after you have gone?” 

You just have to open your eyes and see what they have done with previous windfalls to get your answer.

If you do not have a will then family members who don’t have anything to do with you could be entitled to a share of your estate.

Having a will is important to ensure that the right people get taken care of when it is your time to go.

About this article

You may use the contents of this article as content for your ebook or blog. The information is based on New Zealand law and may not be applicable to you if you are from a country outside of New Zealand, therefore, discretion is advised.

Read my other articles on www.robertastewart.com

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Mastering the Art of Measurable Goals: A Guide to Success

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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Setting Achievable Goals

Setting Achievable Goals

Written by R. A. Stewart

“Whatever the mind can conceive and believe, the mind can achieve”-Napoleon Hill

A goal needs to be achievable, otherwise it is just a fantasy. To set a goal such as “Win the lottery next Saturday” cannot be achieved through your own efforts. It is just a fantasy.

To set a goal of “To be as good as Tiger Woods at golf” when you have no ability whatsoever at playing golf is also unachievable. That is not to say that you are not capable of reaching a certain standard if you take up golf.

What is achievable is a goal which you are physically capable of achieving through your own efforts.

“To complete your first 5k fun run” is an achievable goal if you can run.

Saving for something is a common goal which people aim for. Saving a specified amount of money per week always leads to a much larger goal such as a house deposit, car, overseas holiday, or a retirement fund.

Success can be measured in several different ways. A cricketer can measure their success in their chosen sport in terms of the number of wickets taken or the number of runs they have scored.

What is achievable can be just a matter of an individual’s self image and how they value their abilities. Venturing outside of your comfort zone will enable you to realise your full potential. A negative attitude, low self-esteem, and unwilling to step outside of the well trodden beaten path will be barriers to achievement. 

Negative comments from others who are quick to put a dampener on your aspirations are also a hindrance to your efforts to better yourself. It is best to keep your goals to yourself and focus on what you are doing.

Some people who are keen to tell others of what they are doing are doing so in order to gain approval from others, and when they do not get it they feel deflated. 

There is no law to say that others must give you their tick of approval to everything you do.

Don’t look at your current circumstances and think I cannot do this, but rather look at your current circumstances and think “What needs to change in order that I get the outcome which I am seeking?” You may have heard the saying, “Insanity is doing the same thing over and over again and expecting a different result.”

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

Read my other articles on www.robertastewart.com