Personal Finance – Page 31 – #retirement income

January 3, 2019

TRAVEL ON $20 A DAY

How you can live and travel forever on $20 a day.

I just recently read on the internet about how it is possible to live and travel on $20 day day! This sounds too good to be true but all the same is worth checking out. Our world is much bigger than our own neighbourhood and once you have some travelling to far flung places you appreciate what you have once you meet people who are less fortunate people in the world than you. I think to live on $20 a day is probably only possible for those without financial commitments and I am not talking about things bought on credit but rather rates if you own property and the costs of running a vehicle which add up to an arm and a leg annually. This guide however will be useful information for those who are ready to set off on their journey of a lifetime and you can find out more by cluicking on the link below; https://8a580juwmn56yua43jmdsabk68.hop.clickbank.net/

December 3, 2018December 3, 2018

AN ISSUE OF BULLYING

BULLYING ISSUE BROUGHT TO LIGHT

Workplace bullying is an issue that has cropped up in the news recently (well in New Zealand anyway). It is an issue that has probably been around for centuries but has only been given a name within the previous 20 or so years. Workplace bullying takes many forms, it may be harassment, sexual or non-sexual, personal comments that make the recipient feel humiliated, verbal abuse, social exclusion, name calling, and constant criticism that is unjustified.

There is no doubt that some people are hard to work with and refuse to be civil to you no matter how civil you are to them. The best way to deal with that is to put your head down and concentrate on your work.

People who push others around or are rude to others basically have a low opinion of themselves and what they see in others is often a reflection of how they feel about themselves. Bullying others is their way of boosting their own self-esteem. By constantly putting others down makes them feel better about themselves but problem is, it is like a drug and they have to keep doing it in order for it to work.

There are certain times when the bullying will attack others but it is when they have an audience when they are most lethal. At other times when the victim is alone with the bully, they will be attacked when there are no witnesses but this is increasingly difficult when there are no witnesses.

Some bullying starts with light-hearted banter between work colleagues which gets out of hand or even gets personal; that is when it crosses the line.

The responsibility for what occurs at the workplace rests on the shoulders of the employer; it is they that have to set the standard of acceptable behaviour in the workplace. They have a duty to set boundaries and say this is what is expected of you. Many employers will write this into your employment contract.

The process of dealing with a complaint can be quite drawn out but in New Zealand, the victim if they have a complaint against a colleague needs to complain to their supervisor and they must take steps to ensure that the bullying ceases. If they do not take reasonable steps to solve the problem then the victim can lay a complaint with the Department of Labour.

I have an ebook called “The Bully Buster” and it is available for just $5 It is basically for parents and children and explains how to deal with bullying at school.

www.robertastewart.com

November 22, 2018

DANGER OF DEBT

The disadvantages of being in debt

“The debtor is a slave to the lender.” Proverbs 22:7

Being in debt limits your options and opportunities in life! If you are in debt, you are chained to the borrower- in other words, you are your lender’s slave. Slavery as we know it was abolished a long time ago yet people are slaves in various ways and being in debt is one form which I am going to discuss here.

There are numerous disadvantages to borrowing money and being in debt and the main ones are;

1.When you use credit to make a purchase, you are spending more money on that purchase than the person who buys with their own money. In the long run, the difference between what you could have paid for stuff bought with your own money and what you actually paid for them with the interest added is quite substantial.

2.Being in debt limits your options in life! Someone with cash in the bank is able to travel to another town in search of work or has money invest or to purchase a household appliance which breaks down.

3.Being unable to meet the minimum payments required will affect your credit score or credit rating and credit card companies are likely to change the status of your card which will mean they charge you a higher interest rate in future.

4.Being stressed out over your debts can create health problems.

5.When you are in debt, you are setting a bad advantage to your children who then think that buying on credit and being in debt is normal.

The bottom line is “If you don’t have the money don’t buy it.” The crunch always comes when you have to pay the money back and for a lot of people that crunch comes with a life changing event such as a job loss, divorce, or death of a family member.

www.robertastewart.com

November 11, 2018November 20, 2018

CREDIT CARD DEBT

The peril’s of credit card debt

Credit is so easy to get and being in debt is so normalized that no one really blinks an eyelid if someone is up to their eyeballs in debt. In fact many of the books on finance contains a section on how to get out of debt. There is plenty of information on the internet explaining how to get out of debt but the question is, “Do you have the self-control and the determination to follow through with the advice?”

The first thing you need to do when you are in debt is seek help from a budget advisor or doing a google search on the subject.

Then you must cut up all of your credit cards and say “no more.” The next step is to figure out how you are going to repay the money. The sensible thing to do is to pay back the debt on the card with the highest interest rate and to make the minimum monthly payment on the rest. Once you have paid off one credit card pay off the next one with the highest interest rate.

Once you have paid off your debts then you can go about creating your financial portfolio-there is no point in having savings earning 5% per annum and at the same time paying say 15% interest on your debts.

The only exception to this rule is that if you are in New Zealand Kiwisaver and paid in at least $1040 per annum, you would receive $520 tax cret from the government which is the equivalent of receiving 50% per annum on an investment.

There is such a thing as good debt and bad debt! Good debt is when the value of what yoyu are borrowing the money for is increasing while bad debt is money borrowed for things which lose value over time-it is sometimes referred to as dumb debt.

An example of good debt would be to borrow money to purchase a house because the value of the house is likely to rise faster than the money borrowed against it and as more of the loan is paid back, you will have more equity in the home.

A bad debt would be borrowing for a motor vehicle because the value of the purchase declines over time and in so many cases, the money owing on the car is more than the value of the car.

An instance of stupidity is to borrow money to fund an overseas holiday because there is nothing to show for the debt.

Many people get in debt in order to purchase stuff they do not need, to impress people they do no like with money to do not have! Its all about maintaining a self image and keeping up appearances.

For sound money manager’s, the rule is “If you don’t have the money you don’t buy it.”

I have an ebook avalable called “Credit Score Magic” and you can get it here;

www.robertastewart.com

November 4, 2018

ATTITUDE IS EVERYTHING

Attitude is a key quality

If there is one quality that can help you in life more than any other it is attitude; a good one will take you further than a bad one.

Read this story of two men who entered a new town;

“The first man arrived at a new town and asked the wise man at the entrance, “What are the people like in this town?”

The wise man asked the visitor, “What were the people like in the town you just came from?”

He answered, “Oh they are back-stabbers, they gossip about you, they are unfriendly, and won’t do anything for you and are hard to get along with.”

The wise man replied, “You won’t like this town either because the people here are just the same as that you described.”

The second visitor arrived at the same town as the first man and asked the wise man at the entrance, “What are the people like in this town?”

The wise man asked, “What were the people like in the town you just came from?”

The second visitor, who came from the same town as the first man, answered,”The folks in that town were really good, they looked after one another, They would bend over backwards to help even a stranger, They are a really friendly bunch of people.”

The wise man replied, “Then you will really enjoy this town because the people here are just the same as the town where you came from.”

Notice the vast differences in attitudes between the two men? In all kinds of situations attitude is important, whether it is playing sport, at work, in church, or at home. It is a fact that some people like the first man in this story are always mouthing off at something or somebody and it never occurs to them that there is a common denomonator in all of these situations. If they have a problem with their bank then instead of dealing with it they jump ship and sign up with another bank. They are the same when it comes to relationships. Their negative attitude can be catching if you spend too much time with these people.

At the end of the day, having a good attitude will stand you in good stead and that is something that “you” and “you” alone are responsible for.

www.robertastewart.com

October 29, 2018

STORY OF THE DONKEY

The moral of this story?

There was an old man, his grandson leading a donkey to town and while they were on their way they came across someone who said to them;

“Why don’t you both just ride the donkey? It will save your legs.”

So the old man and his grandson both got on the donkey’s back and continued on their way but further down the road, some one said;

“Hey look at those two people sitting on the poor donkey. Someone should report therm to the S.P.C.A.” (Society for the prevention of cruelty to animals)

So the grandson said to his grandad, “I will get off and lead the donkey and you can ride it.”

But further down the road, a passerby saw this and said, “Thats not good, the poor lad walking while the old man is riding the donkey, I should report the man to C.Y.F.S.” (Child, youth, and family)

So the old man got off the donkey and told the lad to hop on the donkey’s back but further down the road someone saw this and said, “Look at that, an old man walking while the boy is sitting on the donkey.” “The young these days.” that person said.

So the old man got off the donkey and both the old man and his grandson walked along the road leading the donkey as they had done so as the originally set off on their journey.

What is the moral of this story? Other people can take away your power to think for yourself if you allow them to. Everyone has choices that they have and it is up to their discernment to make the right choices. Unfortunately there are some people who think that your life should be a carbon copy of theirs and cannot accept other people’s point of view especially if it differs from theirs. Family members can be the worst offenders in this regard.

Then there are those who don’t want to make their own choices for fear of making a wrong choice for fear of making a mistake so what they do is ask someone for their opinion on something hoping that it will line up with what they want and if they are told what they want to hear they will have someone to blame.

www.robertastewart.com

October 25, 2018

Kiwisavers losing out.

Kiwisaver’s missing out of $thousands$

15% of those in kiwisaver are not making the most of kiwisaver and are missing out on thousands when it comes time to reap their harvest. That is because they are in default kiwisaver funds. What this means is that when you join the kiwisaver scheme you nominate which fund to join, growth, balance, or conservative but if you do not nominate wich fund to join then one will be chosen for you and that is always a conservative fund which has a return of 5% compared to 7%+ for other funds.

It is also important not to chop and change funds according to market conditions. Otherwise it can cost you in the long term.

The following table will give you an example of how much you could be missing out by not getting the most out of your savings.

Amount in kiwisaver 5% return 7% return

10,000 $500 $700

20,000 $1000 $1400

30,000 $1500 $2,100

40,000 $2000 $2,800

50,000 $2,500 $3,500

This difference takes place every single year so that by the time you reach retirement age the differences between how much you could have saved and how much you will actually get will be quite huge. There lies the beauty of compounding interest because your money has earned a return and this money is also working for you.

www.robertastewart.com

October 16, 2018

5-steps to setting goals

5-Steps to setting financial goals

Setting goals can motivate you and help you achieve your goals but before are able to set any goals you must know what you want. This is the first step to setting your goals. Unless you know where you want to go how are you going to know when you have arrived? It would be similar to purchasing a travel ticket without specifying a destination and of course the person at the travel agent will be unable to help you. Unless you know where you are going how will you ever know when you have arrived? The first step to setting goals is “Having goals.”

Step one-Knowing what you want

Knowing what you want or at least setting a goal to achieve something because it is something you think you want is all very fine but you have to know why you want to achieve something; in other words “What motivates you to want that something?” Before you can answer that question you really need to ask yourself this one “What gets you up in the morning?”

Step two-Knowing what motivates you

Knowing what you are capable of doing is an simple as giving it a go. People often short change themselves by setting goals that are not challenging. They stay close to their comfort zone and never venture away from their own well-worn beaten track and stay within their own self-imposed limitations. To achieve anything worthwhile means you have to take risks and that means you make mistakes occasionally but “He or she who never made a mistake never made anything.”

Step three-Knowing your capabilities

There will be lots of people willing to give you advice but you have a choice whether or not to accept it. Problem is there are so many people who will expect you be be a carbon copy of themselves. Such people will tell you what you can and cannot do and place limitations on you. Sadly, they will criticize you for not doing anything with your life and then once you come out of your shell they will be the first ones to point the finger at you for your mistakes. Best thing to do is spend less time with such people, there are kind people out there who will encourage you in your endeavors.

Step four-Knowing who to listen to

This sounds obvious but you must take action in order to get anywhere in life. Your life will not progress unless you take some type of action but this should be actions that lead to your objectives. Some folk make the mistake of taking actions which are not compatible with their goals and so after a while they have gone back into their old ways. If you have no vision then you will return to the past.

Step five-Take action

www.robertastewart.com

October 11, 2018

MESSAGE TO INVESTORS-“Don’t Panic.”

Important not to panic during sharemarket drop

It is important not to panic when the markets are falling as has been the case recently. Whether you have a grand or two in shares or have 1000s invested in the sharemarket, it is best to ride it out the storm and just let the markets bounce back in your favour as no doubt they will. That is if you had followed the basic rules of investing.

The most important rule is to never invest in the markets money which you cannot afford to lose. If you are saving for a house then the sharemarket is not the place to invest your money-you should instead go for more conservative investments. The worst thing that can happen if you had invested your house deposit money in the sharemarket is to find that the value of your investment is reduced when it comes time to withdrawing your money.

If on the other hand you were investing for your retirement then you can afford to take risks as this is a long term investment and you will be able to take advantage of the gains in the market which for decades have outweighed the falls. Some financial advisors would tell you to scale back to more conservative funds the closer you are to retirement but that all depends on how soon after retirement you actually need the money. This is particularly relevant for those with kiwisaver accounts (NZ retirement savings scheme). (Not necessarily applicable in your own country).

It is also important to diversify your investing so that your risk is spread out over several companies and industries. If you have the means to play the market directly then this is the most important rule to follow. It will help you to withstand a sharemarket down turn better because some companies fare better than others during an economic downturn.

This week’s sharemarket down turn is a timely reminder to exercise commonsense when investing money by not placing all of your eggs in the one basket and to ride out the storm.

This article is not intended as financial advice but rather is the sole opinion of the writer.

Bob

www.robertastewart.com

October 8, 2018October 8, 2018

Taking a punt on the Melbourne cup

Melbourne cup clues that count

There are quite a number of systems for selecting the Melbourne Cup winner using past statistics but in recent years winners of the famous race have taken random routes on their way to cup victory. There does not seem to be a set pattern as far as which leadup races to use as a guide to finding the winner of the Flemington’s famous race. Take a look at the recent winners and you will see what I mean;

2017 winner Rekindling’s last race before the Melbourne Cup was the English St Leger in September. He became the first horse since Irish raider Vintage Crop in 1993 to have won the race on his Australian debut. About 100 other horses had tried to emulate Vintage Crop’s success in winning the Melbourne Cup on their Australian debut since but none had suceeded prior to Rekindling although many had gone close to it. Many Melbourne Cup systems eliminate horses making their Australian debuts and therefore did not select the 2017 winner.

2016 winner Almandin had won the Bart Cummings Stakes on the first Saturday of October at his last race. I’m not sure what the race was called previously but whatever it was it has not featured as a leadup race in any previous Melbourne Cup winner since the 1980s, possibly longer than that.

2015 winner Prince of Penzance finished 2nd, beaten by half-a-length in the Moonee Valley Cup at his final outing prior to winning the Cup. The last time a Melbourne Cup winner started in the Moonee Valley Cup prior to their Melbourne Cup success was in the 1980s.

2014 winner Protectionist started in the Herbert Power Stakes at his previous start prior to winning the Flemington feature. The Herbert Power Stakes had not featured as a leadup race among Melbourne Cup winners since the 1980s, maybe longer than that.

Based on all of this, who knows which route this year’s Melbourne Cup winner will take so it would pay to focus only on those factors which count. One factor that seems to stay constant is that the majority of Melbourne Cup winners will be among the first 4-6 favourites and because the field is often quite open, you can get odds of around 5-1 on the favourite. Backing each-way may be the way to go as you will get a good each way price if your horse finishes second or third, even fourth if you are betting with the British bookies. The place portion of youer bet can save you if a longshot blows punters away as was the case in 2015 when 100-1 outsider Prince of Penzance was successful.

Many punters will get greedy and tery to win the trifecta or first four. The odds of winning one of these types of bets are stacked against punters, the huge dividends only mean that thousands of punters are putting their money into the pool with only a few taking out so my advice is to forget them.

I have an ebook with all of the stats + Melbourne Cup systems to try and you can purchase a copy here for just $10 NZ