9 Things you should never borrow money for

 

Written by R. A. Stewart

There are some things which you should never borrow money for because they are considered to be bad debt. The reason why they are considered to be bad debt is that they do increase your wealth but rather decrease it. The value of the item which has been purchased with borrowed money decreases over time. 

Another thing which you should not borrow money for is risky investments which may or may not make you rich but also have the potential to send you to the poor house if the value of the investment plummets. Purchasing crypto currency is a classic example.

Here is a list of items you should never borrow money for.

  1. Cryptocurrency

Only discretionary spending money should be used for purchasing cryptocurrency because of its volatile nature and that nobody really knows what the future holds for crypto. The problem with borrowing to invest is that the liability (the loan) is sometimes more than the value of the investment. This occurrence is on the cards if you borrow to purchase Bitcoin and then the price of Bitcoin crashes.

It is exactly what happened to a lot of investors after the 1987 sharemarket crash. One man in our town borrowed money for shares using the equity in his home and when the market crashed in 1987 he was left with a debt.

  1. A wedding

A wedding is something you should never borrow money for. If a couple cannot even afford to pay for their own wedding you have to question whether they can afford to get married at all. A debt is a bad start to a married life that couples can do without.

  1. An overseas holiday

This is just dumb debt! Taking a holiday with someone else’s money is just irresponsible. There is nothing to show for the money apart from a debt which will be made to get ahead.

  1. A wedding ring

Another thing which is a no go area for borrowed money. If a person cannot even save for a wedding ring then getting married is not a wise decision. If the recipient of the ring expects something expensive then you have to question her motives. This is something that needs to be discussed between the families involved. 

  1. Gifts

Thousands of people go into debt at Christmas time and most of it is spent on buying gifts for others.  Advertisers encourage people to spend, spend, and spend more money and very often it is borrowed money that is being spent. No one should be pressured into spending money in this way or anything else for that matter. If you are then you can always plead poverty to your family.

  1. A new car

Borrowing for a new car is a complete no no because once you take possession of the car its value has dropped considerably and the vehicle is worth less than the amount owing on it. This is called “Dumb Debt.” If you cannot even save for a vehicle then you have to ask yourself this question, “Can I afford to run a vehicle?” The costs of keeping one on the road will drain you of your finances like nothing else will.

  1. Electronics

This is a complete No No as far as borrowing money for. Electronics such as TV sets, radios, smartphones and the like are stuff that you only buy with your discretionary spending money. Follow this rule, “If you don’t have the money you don’t buy it.”

  1. Hobbies

This is something you only do with your own money, not someone else’s money. Some hobbies can pay for themselves, such as stamp collecting. If you are able to swap with other collectors or even sell some surplus stock it can at least be self funding. Other hobbies can cost you an arm and a leg and be a hindrance to your financial goals.

  1. Vet bills

Keeping pets is not cheap and becoming too attached to them can be costly. Many people have spent a fortune on vet bills for their cat or dog when the sensible thing to do is to have it put down.

“If you don’t have the money you don’t buy it” is a good rule to live by. It is called “Living within your means.”

About this article: You may use this article as content for your blog/website or ebook. Feel free to drop me a message and give me other things which you should never borrow money for. Read my other articles on: www.robertastewart.com

 

The Benefits of Having a Travel Card

A dedicated travel card makes trips smoother and more secure. Unlike regular debit cards, travel cards often offer competitive exchange rates, low foreign transaction fees, and multi-currency support—saving you money on conversions.

If lost or stolen, travel cards can be frozen instantly via an app, protecting your funds without affecting your main bank account. Many also provide emergency cash replacement and 24/7 support.

Preloaded with a set budget, travel cards help control spending and avoid overspending. Some even offer rewards or insurance perks. For worry-free travel, a travel card is a smart financial companion.

Join Wise Here

https://wise.com/invite/dic/roberts10486

Kiwisaver Benefits for KIwis

Are you throwing money away?

 

Written by R. A. Stewart

 

New Zealand’s kiwisaver scheme is a retirement scheme for New Zealanders. There are many features and benefits of joining kiwisaver.

What is the difference between a feature and a benefit?

A feature of kiwisaver is that the money is locked up until you reach the age of 65.

The benefit is that you will have a nest egg waiting for you when you retire.

Here is the main benefit of kiwisaver. 

The government will deposit $520 into your kiwisaver providing your contribution is at least $1040 during that financial year.

People who are not contributing to kiwisaver or have not even joined are missing out on all of this money.

Why?

It is hard to fathom why anyone would not join kiwisaver. 

There will not be a single person who reaches the age of 65 who regrets that they contributed to kiwisaver all of their lives.

It is a matter of asking the question, “What will my future self thank my present self for”?

The key to kiwisaver is to keep contributing irrespective of what the markets are doing. 

Investors will be rewarded for their consistency.

Some people have prioritized other things such as sky TV, cats and dogs, lotto, smoking, and booze over their future prosperity.

It is all about choice and it is something everyone has. 

Any New Zealander is able to join kiwisaver.

Any one of any age, from the day a baby is born to those already retired. 

It is important to point out that only those aged from 18-65 are eligible for the government money. It is still worthwhile for those age groups which are not eligible for the government top up to join kiwisaver because it will give the young ones a head start in life and who knows, a rich uncle may leave them some money in his will. It doesn’t pay to fall out with your family by making false allegations about your cousin.

The retired folk can treat kiwisaver as an investment; one which you have access to.

There are circumstances when you are able to withdraw money from kiwisaver, they are:

(a) For bond money if applying for a flat to rent, but only under thirty year olds are eligible to apply.

(b) You may use a portion of your kiwisaver as a deposit on your first home. Most people who take this option are in their thirties.

(c) Moving overseas permanently.

(d) Terminal illness

(e) Hardship

There are some hoops to jump through when trying to withdraw your kiwisaver for hardship reasons. 

There are several books on personal finance which I recommend with my favourite New Zealand authors being Frances Cook, Mary Holm, and Martin Hawes. Check them out. Maybe your local library will stock their books.

With so much information on personal finance available there is no excuse for being financially illiterate. Not joining kiwisaver when you have the means to is just stupidity.

If you are one of these people then you are just throwing money away

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The Percentage Formula

The Percentage Formula

Knowing how to work on percentages is a benefit in the area of finances.

If you are figuring out the return of your investments, you will need to know how to calculate percentages. 

Here is an example:

Your return on an investment of $100 is $7. The formula for working out your return in terms of percentage is:

(a) 7 multiplied by 100 =700

(b) The answer is a being divided by 100= 7%

Your return $7 is multiplied by 100

Your investment of $100 is divided by 700

Shirley has $5,000 in her personal savings account and has received $100 in interest off that money. In terms of percentage, what is her return on that money?

(a) $100 multiplied by 100 =$10,000

(b) 10,000 divided by 5,000= 2

Shirley has received 2% interest on her money.

This formula does not include tax so supposing Shirley pays 17.5% tax.

The formula for working out the tax which needs to be paid on interest is straight forward; it is:

Interest received (income) multiplied by the individual’s tax rate (17.5%).

In Shirley’s case, this is $100 multiplied by 17.5% equals $17.50.

Her net return on her money is $82.50.

17.5% is 0.175

An example such as this shows us the futility of just leaving your money in the bank without investing it. The combination of inflation and taxation means that those who do not invest are losing the value of their money. 

Saving money is a good habit to get into, but it is also important to get into the habit of investing. This increases your financial literacy.

Some people do not invest their money because they are afraid of losing their money, yet they will buy lottery tickets which is a sure-fire way of losing. 

Knowing how to figure out percentages is a skill which will assist you in different areas of your life.

Here are some examples of where knowing how to calculate percentages will be a valuable skill.

Shopping & Discounts: Calculate discounts during sales (e.g., “30% off”).

Tips & Service Charges: Determine how much to tip at restaurants (e.g., 15% or 20% of the bill).

Tax Calculations: Compute sales tax (e.g., 8% tax on a purchase).

Budgeting & Expenses: Track spending (e.g., “20% of my income goes to rent”).

Loan & Credit Card Interest: Understand interest rates on loans or credit cards.

About this article:

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

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Leaving a legacy for generations

Leaving a legacy for generations

Written by R. A. Stewart

“A good man leaves an inheritance for his children’s children.” Proverbs 13:22

I watched a TV program recently about a tree farmer in Finland whose family has been harvesting trees for over 300 years. As he told the reporter, he harvests the trees his grandfather planted while he plants the trees that his grandchildren will harvest. This went on for generations in this family.

What we do today will affect the future generations.

My great grandfather operated a brewery near Greymouth on New Zealand’s South Island. Prior to this brewery getting established, he had financial problems after his first brewery in Westport, sixty miles north of Greymouth was blown over by a south westerly wind. This occurred in 1879. 

He managed to get back on his feet and get another brewery going within 10 years.

This proved to be successful and he built up his assets which included a farm 20 miles north of the brewery.

He also had a bit of money behind him as well.

Future generations have been blessed as my greatgrandfather left his farms to his sons, who in turn left it to their sons. One of his farms is being run by his greatgrandson.

Leaving a legacy such as a farm will enable future generations to make a living off the farm as their parents and grandparents did.

However, when it comes to leaving them a sum of money, should you?

It all depends on whether they are good stewards of their own finances. If they cannot handle even handling their own money then they cannot be trusted to handle yours. 

A responsible and mature person will have joined kiwisaver, the New Zealand retirement scheme. If from New Zealand or their country’s retirement scheme if they are from a country other than New Zealand.

Now consider this, would you leave money to someone who:

Is not joined to a retirement scheme yet has subscriptions to netflix and satellite TV?.

Is not interested in obtaining a financial education yet buys a lottery ticket every single week?

Spends their money in the pub?

Will only spend their money on their hobbies?

Has no savings of their own yet smokes cigarettes?

Any person with any sense will know the character of their own family and ensure that their estates are distributed to those who are responsible.

Some folk will have all kinds of excuses for why they are in a financial mess, but not one of them will admit that they are living beyond their means. People who fit in the categories listed above are all living beyond their means.

If you cannot even be trusted to handle your own finances then you cannot be trusted with what belongs to someone else.

About this article:

This article is of the opinion of the writer and may not be applicable to your own 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

“Holiday Crisis Solved: How to Handle a Lost or Stolen Debit Card”

What to Do If You Lose Your Debit Card While on Holiday

Losing your debit card while traveling can be a nightmare. Whether it’s stolen, misplaced, or simply left behind at a café, the sudden loss of access to your funds can leave you feeling vulnerable—especially in an unfamiliar place. However, acting quickly and methodically can help you minimize financial risks, secure your account, and find alternative ways to access money.

Here’s a detailed step-by-step guide on what to do if you lose your debit card while on holiday.

1. Stay Calm and Retrace Your Steps

Panicking won’t help, so take a deep breath and think back to where you last used your card. Check your wallet, bags, hotel room, or any recent shops or ATMs you visited. Sometimes, cards are simply misplaced rather than stolen. If you’re sure it’s lost or stolen, move to the next steps immediately.

2. Contact Your Bank to Block the Card

Time is critical—the sooner you report the loss, the lower the risk of fraudulent transactions.

  • Call your bank’s 24/7 emergency hotline (save this number before traveling).
  • Provide your account details and request an immediate card freeze or cancellation.
  • Ask if any recent suspicious transactions have occurred.

Many banks allow you to block your card via their mobile app, which is faster than calling. If you don’t have international roaming, use Wi-Fi to access online banking or ask a local shop/hotel to borrow a phone.

3. Monitor Your Account for Fraud

Even after blocking your card, check your account for unauthorized transactions. If you spot any:

  • Report them to your bank immediately—they may reverse fraudulent charges.
  • Change your online banking password for extra security.

If your bank offers instant transaction alerts, enable them before traveling to detect fraud early.

4. Arrange a Replacement Card or Emergency Cash

Ask your bank about:

  • Emergency card replacement – Some banks can courier a new card internationally (though this may take days).
  • Temporary virtual cards – Useful for online purchases if your bank supports digital wallets (Apple Pay, Google Pay).
  • Emergency cash withdrawal – Certain banks partner with global networks (like Western Union) to provide emergency funds.

If you’re traveling with a companion, consider transferring money to their account temporarily.

5. Use Alternative Payment Methods

While waiting for a replacement, rely on:

  • A backup travel card (always carry a second card from a different account).
  • Cash (withdraw extra early in your trip as a precaution).
  • Prepaid travel cards (load funds before traveling).
  • Mobile payments (if your phone supports contactless payments).

6. File a Police Report (If Necessary)

If you suspect theft, file a report at the local police station. Some banks or travel insurance providers require this for fraud claims. Keep a copy for your records.

7. Prevent Future Issues

To avoid this situation again:

  • Carry multiple payment options (two cards + cash).
  • Use a money belt or RFID-blocking wallet to deter pickpockets.
  • Store bank contacts securely (in email or a password manager).
  • Enable transaction alerts for real-time monitoring.

Final Thoughts

Losing a debit card on holiday is stressful, but quick action can prevent financial loss. By staying calm, blocking the card immediately, and using backup funds, you can minimize disruption and continue enjoying your trip. Always prepare for the worst—carrying multiple payment methods ensures you’re never left stranded.

Safe travels, and may your next trip be hassle-free!

The Benefits of Having Two Debit Cards

Carrying two debit cards while traveling provides security and convenience. If one card is lost, stolen, or blocked, you’ll still have a backup for purchases and withdrawals. It also helps avoid issues like ATM declines or foreign transaction limits.

Additionally, you can separate expenses—using one card for daily spending and another for emergencies. Some banks offer better exchange rates or lower fees on specific cards, so having two allows you to optimize transactions.

With mobile banking, managing multiple cards is easy. Dual debit cards ensure financial flexibility, reducing stress during trips. Always keep them in separate places for extra safety!

The Benefits of Having a Travel Card

A dedicated travel card makes trips smoother and more secure. Unlike regular debit cards, travel cards often offer competitive exchange rates, low foreign transaction fees, and multi-currency support—saving you money on conversions.

If lost or stolen, travel cards can be frozen instantly via an app, protecting your funds without affecting your main bank account. Many also provide emergency cash replacement and 24/7 support.

Preloaded with a set budget, travel cards help control spending and avoid overspending. Some even offer rewards or insurance perks. For worry-free travel, a travel card is a smart financial companion.

Join Wise Here

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3 Factors which determine your investment strategy

ABOUT THIS ARTICLE

Reaching your financial goals is not just about saving money; it is about investing your savings to help grow your nest egg. Where you invest your money can help speed up the process of saving because the capital gains on your savings can help you to reach your savings goals earlier. There are three factors which determine where you should invest your savings. This I discuss in further detail.

The information here is of the opinion of the writer and does not constitute financial advice. If you require financial advice see your bank manager or other qualified professional.

3 Factors which determine your investment strategy

You may be wondering what is the right investment strategy for you, but without knowing anything abut you, any advice on which investments are right for you may in fact be the wrong ones. There are basically three factors that determine which are the right investments for you, they are:

  1. Your age
  2. Purpose for the money
  3. Your risk profile

Starting with your age. It would be rather silly of you to invest all your money in growth funds if you are aged 65 because if the market takes a dive such as was the case during the 1987 share market crash and to a lesser extent, the GFC during the early 2000s you have less time to recover from these setbacks whereas the young ones have time on their side. 

Then decide whether you require the money in the short term, medium term, or long term.

Short term would up to a year.

Medium term is 1-5 years

Long term is longer than five years

Short term expenses would be, a bank account for emergencies, a holiday within a year, dental expenses, or t pay for the kids schooling for a year.

Medium term would be savings for a car.

Long term would be your retirement fund, saving for a house deposit, or saving for the trip of a lifetime.

Your risk profile is a determining factor in where you invest your money. If the thought of the share market taking a dive will give you sleepless nights then investing growth stocks in the share market is not for you. A better option would be managed funds where you will be given a choice between growth, balanced, and conservative funds.

It is important not to get into debt for there is a cost to debt and that is interest. Interest adds to the cost of goods bought with borrowed money, and this adds up to a fortune during a lifetime of borrowing for consumables. This is called bad debt because the value of the item declines over time.

There is such a thing as good debt though and this is your first home because the value of the property increases during the lifetime of the loan but even this is not always a good option for some people if you live a kind of transient lifestyle. 

“Everyone is to their own,” so only you know what makes you tick, so your personal circumstances are the determining factors which govern where best to invest your savings.

You must do your homework before you invest in anything, whether that is the share market, managed funds, or gold. There is so much information available on just about everything, and that includes finance. It is just a matter of learning the ropes and having a financial strategy which suits your personal circumstances.

www.robertastewart.com

ABOUT THIS ARTICLE

Most people are able to save money but having goals and selecting the right investments for your savings can help increase your assets and enable you to reach your goal faster. For finance related articles, visit: www.robertastewart.com

Share market falls on the back of Trump Tariffs

Markets tumble

Written by R. A. Stewart

The markets have taken a tumble after President Trump’s tariffs have started a trade war.

The newspapers have reported that Kiwisaver balance will be affected on this. This is stating the obvious. Kiwisaver balances may have dropped, but a lot of people are decades away from retirement so how the markets are performing in 2025 is not going to affect how much they have in kiwisaver when they retire in 2035 and beyond.

It all boils down to selecting the right fund for your risk profile. Money invested falls into one of three categories. Short-term money, medium term money, or long-term money depending on when you are going to be needing that money.

Other factors which come into it are your age, health, and commitments.

The share market goes up and down and the recent (March 2025) tumble is mainly due to the tariffs which President Trump has imposed on goods from certain countries, namely steel. 

Losses are only on paper, but investors who react to recent events and change to conservative funds will lock in those losses and miss out on the gains when the markets rebound. 

The United States will have a new President in four years time, and it certainly will not be Donald Trump in charge then so the markets will certainly bounce back then, if it had not prior to that.

Changing to conservative funds is not the only way to lose during a market slump. The others are to stop contributing to your retirement fund or if you are already retired, make withdrawals from kiwisaver.

With everything being said, it is not the current market slump which will determine how much your retirement portfolio is worth when you retire but how you react to market volatility and that is all down to the choices you make. 

Here is a list of choices which will affect your kiwisaver balance when you retire:

  1. Changing from a growth or balanced fund to a conservative fund.
  2. Stop contributing to your retirement fund.
  3. Withdraw money from your kiwisaver.
  4. Chopping and changing from one type of fund to another.

No one is going to reach the retirement age and regret that they made contributions to their retirement fund. Ask yourself this question, “Will my future self thank me for investing my money instead of wasting it?”

Your retirement fund can only be accessed when you reach the retirement age, therefore you need an alternative source of funds to cover any future financial needs. There are lots of online investing platforms available where you can invest a minimal sum of money regularly and still have easy access to your funds. If you are from New Zealand or Australia, sharesies is a good option for you. This gives you easy access to the share market.  Check out Sharesies Here

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. 

Disclaimer: I may receive a small commission if you join sharesies.

You may use this article in full or part as content for your blog or ebook. Check out my other articles on www.robertastewart.com

How to buy Bitcoin

How to buy Bitcoin

Written by R. A. Stewart

The decision to purchase Bitcoin is a decision which should be made after careful consideration with the main one being, “Can I afford to lose this money?”

Buying Bitcoin is speculation rather than investing. It is a bet that the price will increase in the future, therefore, money used for the purchase of Bitcoin or other cryptocurrency should be money which you can fully afford to lose.

The first thing you will need is to register for a bitcoin exchange. The ones I use are Coinbase, Blockchain, and Kraken. There are a lot of others such as Etoro, Swyftx. It is best to do your research to find one which suits you.

Etoro has a minimum transaction of $1,000 which is too much. I prefer to drip feed my money into these things. The problem with putting a lump sum into Bitcoin is that the price may be high when you buy your bitcoin and then it drops and your original investment is worth a lot less; if you are drip feeding your money into Bitcoin then you will at least have purchased Bitcoin at the lower price if it drops in value.

It is important to point out that Bitcoin is volatile, therefore, you only invest what you can afford to lose.

The signing up process is simple. You need a username and password. You also need some form of ID to upload, this is either a driver’s license or a passport. Then you will be asked some questions, one will be “What is the source of your funds?”

Once you have completed the sign up process you are set to go. You will be asked to type in your card details. This should be a debit card rather than a credit card so that the money which is on your card is your own. Never purchase cryptocurrency on credit because the crunch always comes when it is time to pay it back and there is always the possibility that your Bitcoin balance if it drops significantly will be less the size of your debt.

It is about being responsible with your money.

Two factor signing in

When you sign in the Blockchain you will be sent an email to authorise the signing in. Coinbase will send you a text with a sign in code while Kraken is similar to Blockchain where you will be sent an email. 

It is important to stress that you should use a different email for your cryptocurrency from your normal banking. This is because scammers will try to trick you into giving you your personal information and you cannot always be sure whether the email you receive from your cryptocurrency exchange is really from them or a scammer, therefore type in the URL address of the website rather than clicking on a link.

Unfortunately there are so many different ways of losing money when buying cryptocurrency and being scammed is one of them. It is imperative that you exercise common sense and don’t believe everything that you are told about making money on bitcoin. This form of investing has such a short history that its future cannot be forecast with any degree of certainty. Best advice is to never invest money on bitcoin which you cannot afford to lose.

About this article

The information here is of the writer’s own opinion and experience 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

The Bitcoin’s Investor’s Handbook explains everything about Bitcoin.

Difference between good debt and bad debt

Good Debt and Bad Debt 

Written by R. A. Stewart

Do you know the difference between good debt and bad debt? One needs to be used with caution while the other is to be avoided like the plague.

First the basics.

When you are borrowing money you are paying for the use of that money and that is called interest. This adds to the cost of what the money is used for. Therefore, it is important that you save and use your own money if at all possible.

There are some things which it may not be possible to use your own money such as a student loan or a mortgage because these are major investments, however, most people will contribute a portion of the money needed such as a house deposit.

Good Debt

Listed below are things which are considered to be good debt:

A Student loan

Mortgage

An investment with a higher expected return

Good debt helps to build your wealth.

Listed below are things which are considered to be bad debt:

Bad debt

Vehicle

Household appliances

Veterinarian bills

Travel

Consumables

The reason why these are bad debts is because you end up with little or nothing for your money.

Bad debt does not contribute to your financial well-being, it is detrimental to it.

It is important to know the difference between an asset and a liability. An asset increases your wealth while a liability reduces it.

How to manage debt levels

Pay off debt as fast as possible

Avoid paying high interest rates for consumable items

Stay within your budget

If you don’t have the money you don’t buy it.

Build an emergency fund; this would be a separate bank account from your every day personal account. An emergency fund will ensure that you have money on hand for anything unexpected which crops up.

People with debt do not have any discretionary spending money. These people will probably disagree, but honestly; going on an overseas holiday when one owes money to someone is irresponsible and selfish. It is like giving the middle finger to your creditors.

One should avoid credit cards like the plague. These are for greedy and selfish people. A good money manager will not own a credit card, because to them, “debt” is a dirty word.

Learn to live within your means and to stay within your budget. Prosperity is a matter of choice. If you don’t have any plan for increasing your wealth then you choose not to be wealthy. I do know of many people like this who purchase a lottery ticket every week and that is their only hope of becoming wealthy.

Do not envy those who drive around in a fancy car and live in an expensive house. For all you know these people could be up to their eyeballs in debt. Just live according to your own means and let others do the same. 

To summarise

Good debt is when you borrow for an asset which has a payoff which makes it worthwhile paying the interest for the loan. Bad debt is when you borrow for something which has no lasting value.

About this article

You may use this article as content for your blog/website or ebook. The contents of the article may not be applicable to your personal circumstances, therefore discretion is advised.

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!

 

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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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