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Investing: Experience is the best teacher

Investing: Experience is the best teacher

Written by R. A. Stewart

“He who never made a mistake never made anything”-Jim Addison, Scottish evangelist

In investing as in anything else in life there is no substitute for experience. It is all very well learning about how to become a good investor but it is only when you start investing your own money in the markets when you learn how to become a good investor.

Some investors play the markets on paper and are excited that their paper portfolio is showing a profit on paper so start investing real money and soon find that the markets don’t just rise but fall as well.

It soon dawns on them that what goes up also goes down. 

It is important to get used to the volatility in the markets and ride out the lows. If you are clear on why you are investing then the highs and lows are not a problem.

There are two ways to learn:

  1. Your own mistakes
  2. The mistakes of others

You can reduce your own mistakes by getting yourself financially literate. This comes from reading books on investing and finance and from learning from the mistakes of others.

There is nothing quite like making your own decisions as to where you are going to invest your money. The satisfaction to be had when your judgment is spot on, but you will make mistakes along the way as we all do.

Don’t beat yourself up if some company you had shares in fell by the wayside. Learn from your mistakes and move on. It is important to not let the market volatility deter you from investing.

If you are new to the world of investing then think of it this way. If you are learning to drive a motor vehicle, learning how to use a computer, or learning the ropes in a new job, you will make mistakes but as you gain more experience your level of competence will grow and your mistakes will be less and less.

Learn all you can about the ins and outs of the market and apply it to your own personal circumstances. The older investors have been through a number of roller coaster rides with the share market over the years and are worth listening to for their opinion, but it pays to have the discernment to know who is worth listening to and who not to take advice from.

A few people were scared from the 1987 share market crash, called “Black Monday” that they never invested in the share market since. Such people have missed out on the gains since 1987 and the experience would have made them good investors.

Good judgement comes from past bad experiences; it is all a result of the lessons taken from previous experiences. 

Investing experience will give you the ability to make better choices in the future and this helps to increase your future wealth. 

Never use the excuse, “I don’t have any experience in this or that”, we all started from somewhere, and today it is possible to start investing in the markets on a shoe-string with all of these investing apps.

All the best

About this article

The information here is the opinion and experience of the writer and is not financial advice, therefore discretion is advised.

Read my other articles on www.robertastewart.com

 Tired of seeing your bank charge you $5-10 every time you withdraw cash abroad PLUS that hidden foreign transaction fee? 🤯 That’s money that should be buying you a gelato, a beer, or a souvenir. Wise gets you the real mid-market exchange rate with only tiny, transparent conversion fees from 0.42%. Stop funding your bank’s next vacation. Fund yours. 

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The Value of a Rainy Day Fund

The Value of a Rainy Day Fund

Written by R. A. Stewart

Having a rainy day fund will enable you to pay for unexpected expenses when they arise. This could be for medical expenses, dental expenses, car breakdown, or anything else which may crop up from time to time.

A rainy day fund is not something you use to pay for discretionary spending items. Gym membership fees, a weekend away, or a day at the races are not things you would dip into your rainy day fund for.

When setting up this account you need to set guidelines as to what can come out of this account and what is a no no.

If you are in debt then should you have a rainy day account?

The answer to this is yes, but you MUST pay off your debt first before start depositing money into your rainy day account because the savings on interest will put you into a better financial position.

It is not sensible to have money in an account which pays next to no interest when you are paying high interest on loans.

If there is one bad habit which can be a hindrance to financial freedom it is the habit of borrowing money for stuff which should only be bought with discretionary spending money.

I hasten to point out that if you have debt of any kind then you do not have any discretionary spending money until that debt is paid off.

Getting into the habit of living more modestly means readjusting your lifestyle to fit in with your monetary goals. There are things which people spend their money on which are really choices. They have the choice to spend it on this and that or do without it. 

A bad money manager fritters away all of their discretionary spending money so that by the time the next payday comes around they are broke.

Having a raining day account will provide a cushion again unexpected events which can cause finance stress.

Where to keep it: Keep this money in a separate, easily accessible bank account — ideally a high-yield savings account. It shouldn’t be hard to reach when you need it, but keeping it isolated from your day-to-day checking account prevents you from accidentally spending it on regular expenses.

The benefits of a raining day account are:

  1. It protects you from high interest debt. If you have a $1,000 bill suddenly crops up then your only option may be to borrow that money at high interest rates.
  2. It gives you peace of mind. Knowing that you have money readily available to pay for some unexpected expense gives you some breathing space.
  3. It prevents you from selling investments at the wrong time. If you have investments in growth or balanced funds then you may be forced to sell them just when the markets are down. Having a rainy day account will insure that this does not happen.
  4. It buys you time and choices. If you suddenly suffer a job loss, a rainy day account will buy you time to decide on your next move instead of just making a random choice out of desperation.

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. This is not financial advice but the opinion of the writer.

Read my other articles on www.robertastewart.com

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The Magic Power of Compounding

 

Written by R. A. Stewart

If you have any kind of financial knowledge you will know that the process of investing your money for years, sometimes decades and leaving your interest or dividends accumulate so that you end up earning interest off your interest is known as compounding.

Your investment starts to snowball once you have built up a decent portfolio. Using the process of compounding will enable you to achieve your goals faster.

Compounding also helps you to beat inflation which is a thorn in the side of those who are trying to get ahead in life. 

Investors who choose to have their interest or dividends paid into their bank account rather than have them added to their investment will find that their original investment will lose it’s purchasing power thanks to inflation. 

Your investing timeline is a big factor and the purpose of your investment.

If you are retired then you may prefer to have dividends paid into your bank account to help pay the bills and many do just that. The young ones usually let the income from their investments accumulate. This is common in retirement and mutual funds.

When you are saving for something then consider whether they are short-term, medium-term, or long-term goals. This matters because choosing the wrong type of investment for your timeline can affect how much you will end up with when it comes the time to cash in your investment.

For example it is not appropriate to invest your emergency fund in a growth fund due to it’s volatile nature because what is liable to happen is that just when you need the money the markets are down and there is less money available in your emergency fund than you thought there was.

At the other extreme, it is foolish to just leave your retirement fund in an ordinary savings account where you are paid minimal interest because inflation will erode the spending power of your money. 

Here is a break-down of the timelines of Short-term, medium-term, and long-term goals.

Short-term goals are within 12 months.

Medium-term goals are 1-5 years.

Long-term goals are over 5 years.

Getting into the habit of saving and investing will put you into a good position to withstand the financial shocks which life throws at you. This could be illness, job loss, family emergency, car breakdown, or anything else.

It takes vision to make some kind of provision for your future because you are preparing yourself for an event which may or may not happen. 

Then there are events which most people planned for such as buying a new car, further education,  saving for a house deposit, marriage, family, overseas trip, and retirement. People who have common-sense will make provision for events in their life which they expect to happen.

Investing your money for compound interest will help you to achieve your money goals sooner rather than having your interest or dividends paid to your bank account to spend. But it all depends on your personal circumstances.

About this article

This article is not financial advice 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

 

 Tired of seeing your bank charge you $5-10 every time you withdraw cash abroad PLUS that hidden foreign transaction fee? 🤯 That’s money that should be buying you a gelato, a beer, or a souvenir. Wise gets you the real mid-market exchange rate with only tiny, transparent conversion fees from 0.42%. Stop funding your bank’s next vacation. Fund yours. 

JOIN WISE HERE

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The SpaceX Bandwagon should be treated with caution

The SpaceX Bandwagon should be treated with caution

Written by R. A. Stewart

Elon Musk has sold or is going to sell 4% of SpaceX.

The first thing I have learned is that when a company gets a lot of publicity and there are shares in the company the Fear of Missing Out or what it is often called FOMO takes hold of a lot of investors who want a piece of the action.

In the past FOMO euphoria has caused the share price of some companies which were just floated to be inflated and then they did not stand the test of time. The result being that investors were left with burned fingers.

That is not to say that SpaceX will suffer the same fate. 

But…

There are some negatives which mean that investing in this SpaceX can be classed as speculating rather than investing.

The main one being that a company which is hyped up by the media is usually over valued as has already been talked out. Then there is the fact that the company has not made a profit but is expected to.

Most people who are jumping on this bandwagon turn a blind eye to the possible pitfalls and risks of investing in such companies.despite all of the negatives. They get comfort from the fact that others are also investing in this company.

Investors need to take stocks and think of the past when others have jumped on bandwagons and got their fingers burned.

The 1987 share market crash, known as “Black Monday” an example of how the “Follow the herd” mentality led to paper fortunes being lost. Some investors borrowed heavily to purchase shares and as the company shares rose they were able to borrow more money using the inflated value of their shares as collateral. It all ended in disaster as the value of the shares were only a fraction of the loans taken out to purchase the shares.

Something is only worth what others are prepared to pay for. 

Many of those companies which fell during the 87 crash were basically paper shuffling companies which were not producing anything tangible. All of those investors who jumped on the bandwagon were responsible for creating an inflated value for these companies.

Then there is the Global Financial Crisis when lots of people lost their life savings because they invested in finance companies which were offering high interest rates. Some financial commentators warned that the high interest rates do not reflect the risk which investors are taking on.

Many of these companies were advertising on national television and used well-known advertising to promote these companies.

SpaceX may not fall into the same category of those companies which failed during the 87 crash or the GFC but if a herd of investors are buying shares in the company there’s little room for capital gain.

Always remember that if there is an opportunity for capital gain there is also a chance for a capital loss.

This all does not mean that SpaceX is a bad bet but rather where it all fits into your financial plan. If you just want an interest, albeit a small one, then go for it. You may just end up with a winner. Just follow the basic rules of investing such as “don’t plunge all of your life savings into one company.”

About this article

The contents of this article is of the opinion of the writer and may not be applicable to your personal circumstances therefore discretion should be advised. R. A. Stewart is not a financial advisor and the information and opinions here should not be taken as financial advice.

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

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Career: Looking at the big picture

Career: Looking at the big picture

Written by R. A. Stewart

If you are young and have your whole life in front of you then no doubt you will have given some thought as to what you would like to do in the future and the best time to start thinking about that is the present. I have some questions which will help clarify your thinking as you consider all of your options.

  1. What action can I take today which my future self will thank me for?
  2. Do I spend my spare time doing things which add value to my life?
  3. Do I have a good attitude to whatever task I am assigned?
  4. Do I manage my money wisely?
  5. Am I living my own life?
  6. Am I aiming too low?
  7. Are my goals too vague?

  1. What action can I take which my future self will thank me for.

There are some things which you can do today which your future self will thank you for. One of these is to join a retirement scheme and contribute to it all of your life. No one is going to reach the retirement age and regret contributing to a retirement scheme all of their lives. 

Giving up current pleasures for the benefit of the future of tomorrow will pay dividends.

Always look at the big picture. 

  1. Do I spend time doing things which add value to my life?

Think of how you spend your time and ask yourself “Does this add value to my life?”

It will be a good idea to list all of the things you have done today and replace some of the time wasting activities doing something useful.

  1. Do I have a good attitude to whatever task I am assigned?

You may be in a job which you consider is beneath you, but even so, it is your responsibility to perform tasks which are assigned to you. That is what you are paid to do. A bad attitude tends to follow people around from one job to another.

  1. Do I manage my money wisely?

Too many people have the attitude of “You can’t take it all with you”, then when some major life event comes along such as a job loss, marriage, or kids they have nothing to fall back on. It is all about being responsible with your money. Saving and investing money require vision because you are making provision for something which has not occurred in your life yet.

  1. Am I living my own life?

Your goals should be your own and not something which others have told you that you should be doing. Don’t just decide to take up a particular career just because your peers are doing it. You must look to your own skills and talents and use that as a springboard to your career.

  1. Am I aiming too low?

Nothing kills off ambition like getting into a rut and being comfortable there. Starting from the bottom to earn some money is one thing but you don’t have to park your car there for life. It is always a good idea to take some courses in your spare time in order to improve yourself. It is bad enough that others may put limitations on you, but don’t sell yourself short as a result.

  1. Are my Goals too Vague?

It is important to have goals which are measurable and meaningful. Just saying “I want to find a job” is too vague. A goal needs to be specific. Once you have decided on your goal it then becomes a matter of how you are going to achieve it. 

Whatever you are going to do, always look at the big picture and think “How will this benefit my future? It takes vision to plan for your future and making preparations for what may come will put you in a better position to deal with curveballs which life may bring.

About this article

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

Read my other articles on www.robertastewart.com

Working in your chosen field

You may not have the talent or inclination to be an international sportsperson but you can be an asset in your chosen field and that does not mean that you have to be something out of the ordinary to become a valued member of society. A person who works at an entry level job can do so with such a good attitude that their diligence will not go unnoticed by their employers.

You may not particularly like your job and have any control over what happens at work but your attitude is something you can control. An employer with a bad attitude will take that bad attitude with them wherever they go. 

If you enjoyed this article then this ebook may interest you:

 

How to Enjoy Your Job

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Late Life Relationships: Financial Risks

Late life love: Things to consider

Written by R. A. Stewart

Getting involved with someone new late in life may sound like a good idea but there are financial considerations to consider not for yourself and your own family.

If you are receiving government support then you will be on the married rate whatever that is. It is your obligation to notice them of your new relationship status. Failure to do so may result in legal hassles later on.

Your will is something which needs to be changed when a new relationship starts. This will have serious implications for your children or whoever you intended to leave your assets to when you pass on. Your new spouse or partner will be entitled to everything irrespective of any promises made prior to entering into a new relationship.

There could be a situation whereby your family’s assets will be transferred to your spouse’s family should you pass on first.

Men in particular have to be wary of gold diggers and scammers.

There are people out there who prey on the emotions of others. Stories appear on the news occasionally of men who fell victim to romance scams.

As for gold diggers, some women are more interested in what’s in your wallet than what’s in your heart. Someone with discernment and common sense will know the motives of potential partners. 

There are some things which you need to consider when entering into a relationship late in life.

  1. Has this person got a good credit rating?

This may seem an unromantic question but if you are dating someone with a poor credit rating then you expose yourself to their debts. It could alter your estate planning as your spouse’s creditors could take a chunk off your estate.

  1. It can be difficult to change one’s existing lifestyle to accommodate someone else’s wants.
  2. Marriage may change your tax status, therefore it will pay to get advice on this.
  3. Marrying someone who has dependent children will make you equally responsible for child maintenance if your new spouse has children from a previous relationship.
  4. Estate planning needs to be carefully considered because the new relationship status will change who gets what if one person passes on. Clear communication with family members is essential. It is also important to get legal advice. This needs to be done prior to entering into a new relationship.
  5. Consider a prenuptial agreement in the event that the relationship turns sour.
  6. Placing your assets in a trust may be right for you if your desire is to leave your assets to your own family.

It is worth noting that as far as retirement savings go. Any contributions made to your kiwisaver during a relationship are considered matrimony assets, but only contributions made during the term of the relationship. The rules may be different in your own country regarding pensions. 

About this article

The contents in 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 website/blog or ebook.

Read my other articles on \www.robertastewart.com

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Streamlining the Modern Journey: The Practical Benefits of Booking with Expedia

Travel planning is inherently exciting, but the logistics of piecing together a trip can quickly turn overwhelming. Managing separate browser tabs for flights, accommodations, and car rentals often leads to choice paralysis and scheduling friction. For decades, online travel agencies (OTAs) have aimed to solve this headache, with Expedia standing out as one of the most reliable and comprehensive platforms on the market. Whether you are arranging a quick weekend getaway or a complex, multi-leg international itinerary, utilizing Expedia offers several distinct advantages that streamline the entire process.

Visit Expedia Here

1. The Convenience of One-Stop Bundling

The most immediate benefit of Expedia is its ability to centralize your travel logistics. Instead of navigating multiple individual airline and hotel websites—each requiring unique account creations, passwords, and data entry—Expedia allows you to search, compare, and secure everything in a single checkout.

This centralization is highly practical when utilizing Expedia’s bundling features. Combining a flight, hotel stay, and car rental into a vacation package frequently unlocks steep, negotiated wholesale discounts that are completely unavailable when booking the components separately.

2. Unmatched Inventory and Transparent Comparison

Expedia offers a massive global footprint, providing access to hundreds of airlines and over an expansive inventory of properties worldwide. This sheer volume gives travelers aggregate market visibility. In a single search window, you can filter results by:

  • Budget and Real-Time Pricing: Instantly compare baseline fares side-by-side.
  • Granular Filters: Sort by neighborhood proximity, guest ratings, specific amenities (like free Wi-Fi or pools), and flexible cancellation policies.
  • Verified Reviews: Because Expedia allows reviews exclusively from guests with confirmed bookings, travelers can read authentic feedback, avoiding the skewed or fraudulent commentary often found on open-source review platforms.

Visit Expedia Here

3. Financial Safeguards and Price Matching

Booking travel always carries a slight anxiety regarding fluctuating prices. Expedia directly mitigates this with clear, consumer-friendly policies. Members frequently get access to an automated Best Price Guarantee. If a traveler books a flight or hotel and discovers a cheaper identical rate online within 24 hours, Expedia will match the price or refund the difference. This takes the guesswork and continuous monitoring out of securing a fair market deal.

                 ┌───────────────────────────────────┐

                  │      Expedia One-Stop Booking     │

                  └─────────────────┬─────────────────┘

                                    │

         ┌──────────────────────────┼──────────────────────────┐

         ▼                          ▼                          ▼

┌─────────────────┐        ┌─────────────────┐        ┌─────────────────┐

│ Flight Tracking │        │ Verified Hotels │        │ Rental Cars &   │

│  & Bundled Fees │        │   & Reviews     │        │ Local Activity  │

└─────────────────┘        └─────────────────┘        └─────────────────┘

 

4. Rewarding Loyalty with Expedia Rewards

Frequent travelers benefit significantly from the built-in loyalty program. Every booking—regardless of whether it is a boutique hotel, a major airline, or a local excursion—earns points. These points accumulate rapidly and can be applied directly as cash discounts on subsequent trips.

Furthermore, as users climb the membership tiers (gaining Silver or Gold status), they unlock premium, on-property perks. These include complimentary room upgrades, late check-outs, and dedicated customer service pipelines that bypass standard wait times.

Visit Expedia Here

5. Consolidated Data Security and Organization

In an era of rising digital vulnerabilities, entering credit card information and personal identifiers into dozens of disparate websites introduces unnecessary security risks. Expedia requires you to store your payment and personal data securely in just one location.

Once booked, your entire itinerary is neatly organized inside a single, intuitive mobile application. This app provides real-time gate changes, flight delays, and check-in reminders, serving as a digital travel assistant right in your pocket.

The Takeaway: Ultimately, Expedia transforms travel from a chaotic logistical chore into a simplified, secure, and cost-effective experience. By prioritizing convenience, massive selection, and financial protection, it allows travelers to spend less time managing browser tabs and more time focusing on the journey itself.

Visit Expedia Here

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Fear of Loss will kill your chances of prosperity

Fear of Loss will hinder chances of prosperity

The fear of losing money will cause people to play it safe by not stepping outside their comfort-zone and not investing their money for greater returns. 

Leaving your money in an ordinary savings account will mean that inflation will erode the value of your money yet that is exactly what a lot of people do. They are afraid to take risks.

Some of this fear comes from those who had experienced the crash of 1987, better known as “Black Monday” when portfolios were hit hard. Some people lost their life-savings and more tragically, a lot of the money which went down the drain was borrowed money.

In these situations, shares were worth less than the money borrowed to purchase them.

There are risks which are worth taking and risks not worth taking. It takes discernment to tell the difference.

I remember once (about 2001) I bought shares in Air New Zealand and they almost went bust, well they would have if the government did not bail them out. The shares dropped to a low of fourteen cents a share. I bought my shares in the company at around $2 a share.

This was the last time I bought shares in an airline. It was an expensive lesson. 

I have known some people who never invest their money for fear of loss; they cannot handle the volatility of watching their balances go up and down yet they have no problem with buying their weekly lottery tickets. If they had deposited that same money into their kiwisaver then these people would have a fortune waiting for them once they reach the age of 65.

“You make your choices and your choices make you.”-Jim Addison, Scottish Pastor

It is all about choices.

The choices you make today will determine which choices you are able to make in the future.

If you have been sensible and joined a retirement scheme and contributed to it all of your life then this choice will give you more options in your later years.

Ask yourself these questions, “What action can I take today which my future self will thank me for?”

There will not be a single person who reaches the age of 65 or whatever the retirement age is in your country, who will regret ever joining  and contributing to a retirement fund.

It is everyone’s responsibility to get a financial education. This will help you to make right choices for your money. Apply what you have learned which are applicable to your personal circumstances.

Getting over your fear of loss will enable you to grow your wealth rather than just leaving it in the bank where inflation will steal the purchasing power of your money.

About this article

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

The contents of this article may not be applicable to your personal circumstances, therefore discretion is advised.

Read my other articles at www.robertastewart.com

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The Career Pyramid: Understanding Your Odds of Reaching the Top

What are your odds of success…

in your chosen field?

Written by R. A. Stewart

This all depends on what your definition of success is.

As kids all of us wanted to be somebody when we grew up. It did not necessarily mean being a rock star, it could have been as a policeman, a train-driver, a fireman, a farmer, a nurse, or a school teacher. I wanted to be a champion athlete and a horse racing trainer who trained champions.

Some dreams are achievable, there is a shortage of policemen and nurses in New Zealand. In other occupations there are more people wanting to break into those roles than the number of vacancies available to fill them.

It certainly pays to be multi-skilled as it will give you more options in life. It reminds me of a quote from my great aunt Ann Stewart, who was a nurse. She said, “Always have other strings to your bow.”

Other careers need lady luck on your side to enable you to reach the top.

Horse racing is one of these.

It is no secret that owners and trainers dream of winning the Melbourne Cup in Australia. The odds of achieving that feat are not on your side. 

The same can be said of becoming an Olympic athlete. Of all of the millions of people who play sport, a relatively few get to take home a gold medal.

Life mirrors that of a pyramid.

Here is an illustration of this:

In rugby only a tiny percentage ever get to play for the All Blacks. They are at the top of the pyramid. They get paid the most.

The next level down are the Super Rugby Players, the majority of whom do not get to be All Blacks. There are more players in this category. They get paid less than the All Blacks.

The next level down are the Provincial Players, who do not get paid apart from get some kind of reimbursement. They have jobs to go to outside of rugby. There are still more players in this category.

At the bottom of the pyramid are the club players who do it purely for the love of the game without any thoughts of advancing up the pyramid. For most people rugby is a sport to be enjoyed. The majority of rugby players are at the bottom of the pyramid.

All careers follow the same pyramid pattern where those at the elite level are at the top of the pyramid and the further down the pyramid you go the more people you will find.

Working in your chosen field

You may not have the talent or inclination to be an international sportsperson but you can be an asset in your chosen field and that does not mean that you have to be something out of the ordinary to become a valued member of society. A person who works at an entry level job can do so with such a good attitude that their diligence will not go unnoticed by their employers.

You may not particularly like your job and have any control over what happens at work but your attitude is something you can control. An employer with a bad attitude will take that bad attitude with them wherever they go. 

If you enjoyed this article then this ebook may interest you:

 

How to Enjoy Your Job

 

https://payhip.com/b/ygfk5 

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Breaking into your Retirement Savings Early can be costly

Breaking into your Retirement Savings Early can be costly

Written by R. A. Stewart

New Zealand’s retirement scheme is called Kiwisaver. There is one thing which makes this scheme unique to retirement schemes of other countries and it is this:

There are circumstances when people can access their money prior to reaching their retirement age, 65 in New Zealand. People can access their money early for any of the following reasons:

  1. Terminal illness
  2. Going overseas permanently
  3. Purchasing their first home.
  4. Hardship.

Numbers 1 and 2 are quite understandable. Number 3 is that if you are purchasing your first home you may be able to use part of your kiwisaver for a house deposit.

Reason number 4 is the most common reason for premature kiwisaver withdrawals. In 2025 58,000 people withdrew money from their kiwisaver for hardship reasons. 

Breaking into your Kiwisaver early is not easy. You have to prove undue hardship, something which 58,000 people have managed to do. 

It is the fund manager’s supervisor who makes the decision to release your funds. They still have to follow a set of strict guidelines and a lot of people will have their application to withdraw early declined as a result.

Some people will see their Kiwisaver balance and think, “You can’t take it all with you, I can do a lot with that money,”

Kiwisaver is earmarked for your retirement or for your first home purchase and should not be touched otherwise you will be paying for it later on down the track.

The whole point of kiwisaver and any other retirement scheme is that you are saving money for your retirement and do not withdraw and keep contributing. 

Consistent long-term savings work well thanks to the magic of compound interest. 

Any break in savings will interfere with this process. 

With compound interest you earn interest on the interest and this helps your savings to grow faster. 

At retirement there can be a big pot of money waiting for you thanks to compound interest which is a friend of the long-term saver.

Making right choices

It is important to make the right choices when making important financial decisions, whether that is entering into a new relationship, purchasing a car, taking out a loan, or making major home improvements. The pros and cons need to be explored thoroughly and not to be rushed into.

All of these major decisions will have consequences, which will eventually lead to an outcome. 

One big mistake is to make major decisions based on today’s circumstances as if today’s circumstances will remain the same forever. Investing some if not all of your discretionary spending money in a share market fund other than kiwisaver will improve your financial know-how. There are several online share-market investing platforms available to begin your investing portfolio if you have not already started one. It is just a matter of being consistent with your investing and letting compounding interest do its work. 

About this article

The contents of this article is of the experience and 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