“3 Money Mistakes made by people”…
according to New Zealand financial advisor Frances Cook.
Frances Cook was on the AM show and explained the three mistakes made by people which are costing them hundreds of dollars every year.
Mistake number one
Not negotiating over price!
Frances says “Don’t just stay loyal to your power company but look elsewhere to see if you can get a better deal”
She advises people to shop around, for everything; that could be your power company, your internet supplier, or your phone company,” and not just stay loyal to them without questioning whether you may be better off with a competitor. “Start with one company and do your research to see what kind of deals they are offering, if you can ring them and bring it to their attention. They may give you a deal in order to retain you as their customer.
Mistake number two
Leaving your kiwisaver in a default fund.
Those who join kiwisaver and do not specify which fund they want their money in will automatically have their money in a default fund which is invested in conservative funds. The money is safe but the returns are very low meaning by the time those in conservative funds reach 65 their retirement nest egg will be smaller than it would have been if it was invested in balanced or growth funds.
This is applicable to those in New Zealand but it may apply to some abroad depending on how your retirement scheme works.
Mistake number three
Having a bad attitude
I couldn’t quite catch what Frances said was the third mistake but she did say that it was like not learning to swim because you don’t know how to. If you say, “I am not good or not interested with all this financial stuff,” then that kind of attitude will cost you a fortune over a lifetime. There is no excuse for staying ignorant about personal financial matters.
Gaining financial literacy is easy with so much information available online.
Check out Frances Cook’s website www.francescook.co.nz
www.robertastewart.com
