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12 Ways to reduce your power bills

12 Ways to reduce your power bills

 

Reducing power bills can be achieved through various strategies that focus on conserving energy and optimizing electricity usage. Here are some effective ways to reduce your power bills:

  1. Energy-efficient appliances: Replace old, energy-guzzling appliances with energy-efficient models. Look for appliances with the ENERGY STAR label, which indicates they meet high energy efficiency standards.
  2. Unplug unused devices: Many devices and appliances continue to draw power even when not in use. Unplug chargers, laptops, gaming consoles, and other electronics when they are not actively being used or invest in smart power strips that cut off power to devices when they are not in use.
  3. LED lighting: Switch from traditional incandescent bulbs to energy-efficient LED bulbs. LED lights consume significantly less energy and have a longer lifespan.
  4. Adjust thermostat settings: Lowering your thermostat by a few degrees in winter and raising it in summer can lead to substantial energy savings. Utilize programmable thermostats to automatically adjust temperature settings based on your schedule.
  5. Efficient cooling and heating: Keep your home well-insulated to prevent heat loss during winters and heat gain during summers. Seal any drafts, insulate walls and attics, and use curtains or blinds to regulate sunlight and temperature.
  6. Energy-saving settings: Optimize the energy-saving settings on your appliances, such as refrigerators, washing machines, and dishwashers. Use cold water for laundry, run full loads, and avoid using heated dry settings.
  7. Smart energy management: Install a smart energy management system that allows you to monitor and control your energy usage. Smart thermostats, smart plugs, and energy monitoring devices can provide insights and help you make energy-efficient choices.
  8. Energy-conscious habits: Develop energy-conscious habits like turning off lights when leaving a room, using natural light whenever possible, and using energy-efficient cooking methods like microwaving or using a slow cooker instead of an oven.
  9. Solar power: Consider installing solar panels to generate your own renewable energy. Solar power can significantly reduce your reliance on the grid and lower your power bills in the long run.
  10. Energy audits: Conduct an energy audit of your home to identify areas of improvement. Professionals can assess your energy usage, insulation, and suggest personalized strategies to reduce power consumption.
  11. Time-of-use pricing: Check if your utility company offers time-of-use pricing plans. These plans provide different rates for electricity based on the time of day. Shifting energy-intensive tasks to off-peak hours can result in cost savings.
  12. Phantom power reduction: Unplug electronic devices or use power strips with switches to eliminate “phantom” or “vampire” power, which refers to the energy consumed by devices on standby mode.

By implementing these energy-saving practices and adopting a mindful approach towards electricity consumption, you can effectively reduce your power bills while promoting a more sustainable lifestyle.

Feel free to share this article. You may use it as content for your ebook or blog.

www.robertastewart.com

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Capital gains tax discussion in New Zealand

 

Written by R. A. Stewart

New Zealand does not have a capital gains tax or wealth tax. New Zealander’s do not want one according to statistics. That is despite the fact that the so-called Super Rich are paying half as much tax as ordinary New Zealanders according to new paper reports.

This may or may not be true. 

The reason is that the super rich are benefiting from capital gains which is not disposable income. The value of their property may have risen by x amount of dollars but it is unrealised wealth. 

There are ordinary New Zealanders who own their own home and whose property has increased in value too. That may be subject to a capital gains tax too.

Then there are those who have money invested in the New Zealand pension fund Kiwisaver which invests money in property and shares. A capital gains tax may affect kiwisaver balances.

New Zealand voters are smarter than many politicians give them credit for and any political party that treats them as idiots does so at their own peril.

The same rules which are applicable to the super rich are also available to everyone else who owns property. There will be a lot of people who are considered to be middle income earners but are finding things tough with the cost of living crisis yet many of these are property owners who are asset rich but cash poor. They may not have the cash available to pay the tax on the capital gains on their property.

For years New Zealanders have been encouraged to save for their retirement so what message does it send to the young to then increasing taxes on assets which have been built up over the years.

It is likely that a Capital Gains Tax will drive up rents as landlords will want to recover the extra costs to their business. This will hit those on a lower income the most as they are priced out of the housing market.

About this article

This article is of the opinion of the writer and is not necessarily applicable to your personal circumstances. Feel free to share and print this article.

www.robertastewart.com

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How to make or lose a fortune

Written by R. A. Stewart

“How can I make a fortune on the share market?”-a question some random person may be thinking to him or herself and if I really knew the answer to that question then I would be rich beyond my wildest dreams.

I can’t tell you how to get rich but at least I can give you some hints to help save you losing your shirt and a lot more.

Share prices do not always represent value, but rather the opinions of the wisest men in finance. The markets tell the story of the times. The stock market moves according to the news coming out from various companies. Shares prices are often ahead of actual happenings.

When you are trading on shares you are competing with some of the best financial brains in the country. They have the benefit of years of research and experience behind them. Not to mention huge financial resources and every conceivable aid to assist them.

Never lose sight of the fact that someone’s gain is nearly always someone else’s loss-don’t let it be yours. Share prices can drop sudden and faster than they rise. Don’t let it overwhelm you.

A “tip” is just an opinion. There are plenty of people who are willing to advise you to sell or to buy. Don’t let any of this throw you off course.

Some companies have professional directors whose job it is to enhance the company’s image. They add little else to the company’s bottom line.

All of the glossy brochures about a company may look impressive but they can be doctored to look better than they really are.

The financial jungle can be rough and those losses can be hard to swallow but one must learn to take a financial hit occasional and not be discouraged from taking further risks. When I say risks I mean calculated ones. 

If you are going to make yourself ill by worrying if your shares drop by a percentage point or more then stay out of the share market and be a little more on the conservative side with your investing. 

In this day and age with modern technology and online share market platforms it is much easier for ordinary people to build a portfolio on a modest income. Managed funds enable anyone to tap into the best financial brains in finance-even the financially ignorant.

Even so, keeping up to date with the financial world will help you in the long run.

Share trading can be divided into three categories.

1 Long term: For people wanting to build a nest egg for their retirement. The type of investment will depend on your risk profile and your age. Investors may want to just invest regularly into this type of fund and forget them.

2 Medium Term: For investors wanting a reasonable return up to five years with a chance of a capital gain.

3 Short term: This is for money that may be needed within the next 12-24 months. It should be placed in more conservative accounts. Money in this category may be required for appliance repairs or replacement and so forth. It is for the unforeseeable expenses. Many financial advisors even suggest having an emergency fund for this purpose.

About this article

This article is of the opinion of the writer and may not necessarily be applicable to your own personal circumstances, therefore caution is advised. Read my other articles on www.robertastewart.com 

 

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The cost of owning a dog

Owning a dog can be a rewarding and fulfilling experience. Dogs offer companionship, protection, and loyalty to their owners. However, owning a dog is not just a matter of fun and games; it also comes with a significant financial commitment. There are several costs involved in owning a dog, from initial expenses to ongoing maintenance costs. In this article, we’ll take a closer look at the cost of owning a dog.

Initial Expenses

The initial costs of owning a dog can be quite significant. These include the cost of purchasing or adopting a dog, which can range from a few hundred dollars to several thousand dollars, depending on the breed and where you buy the dog from. Some breeds, such as purebred dogs, can be more expensive than others. Adopting a dog from a shelter can be a more affordable option, as the fees are usually lower.

In addition to the cost of the dog itself, there are also other initial expenses to consider. These include things like:

  • A collar and leash
  • Food and water bowls
  • A bed
  • Toys and treats
  • Training classes
  • Veterinarian checkup and initial vaccinations
  • Spaying or neutering

All of these expenses can add up quickly and can easily cost several hundred dollars.

Ongoing Expenses

Once you have your dog, there are ongoing expenses to consider. These include:

  • Food: Depending on the size and breed of your dog, food costs can range from $20 to $60 per month.
  • Veterinary care: Annual checkups, vaccinations, and preventative care can cost $200 to $500 per year. If your dog gets sick or injured, veterinary bills can quickly add up.
  • Grooming: Depending on the breed of your dog, you may need to take them to a groomer for regular haircuts and maintenance. Grooming costs can range from $30 to $100 per visit.
  • Training and obedience classes: If you want to train your dog, you may need to take them to obedience classes or hire a trainer. These costs can range from $50 to $150 per session.
  • Boarding and daycare: If you travel frequently or work long hours, you may need to board or hire a dog sitter to take care of your dog. These costs can range from $20 to $75 per day.

Other Considerations

In addition to the direct costs of owning a dog, there are other considerations to keep in mind. These include:

  • Time commitment: Dogs require a lot of time and attention, including regular walks, playtime, and training sessions.
  • Housing: If you rent your home, you may need to pay an additional pet deposit or pet rent.
  • Home and yard maintenance: Dogs can be hard on your home and yard. You may need to replace carpets, repair damage, or invest in a fence to keep your dog safe.
  • Travel: If you plan to travel with your dog, you may need to pay for additional accommodations, such as pet-friendly hotels or airline fees.

Tips for Saving Money

While owning a dog can be expensive, there are ways to save money. Here are some tips to help you keep costs down:

  • Buy in bulk: Buying dog food, treats, and other supplies in bulk can save you money in the long run.
  • Shop sales: Look for sales and discounts on dog supplies and toys.
  • Take care of your dog’s health: Regular exercise and preventative care can help keep your dog healthy and reduce the need for expensive veterinary visits.
  • DIY grooming: If you’re handy with a pair of clippers, you can save money by grooming your dog at home.
  • Plan ahead: If you know you’ll need to board your dog or hire a pet sitter, plan ahead and book early to save money

Here is something which may be of interest to you; Obedience training for puppies. Check it out here:

https://affiliates.trainpetdog.com/idevaffiliate.php?id=10551

www.robertastewart.com

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Diversification in the share market

Written by Robert A. Stewart

Diversification is a term we often come across in the investment industry but what does this really mean for the Mum and Dad investor and how can the ordinary investor profit from diversification? Here is an article written in simple language which everyday investors can understand.

Diversification in the share market

What it is and how you can make it work for you

Diversify, diversify, diversify are terms you will come across in the world of investments so what does it mean and how can you make it work to grow your wealth?

When someone says you should diversify your investments what is meant is that your investments are spread out among different companies and sectors in order to reduce your risk.

An investor may have shares in a phone company, a power company, a bank, an insurance company and so on.

This kind of diversification was once beyond the means of the average investor because one had to purchase at least $3,000 worth of each share just to make it viable because of the broker’s commission on each buy and sell transaction.

Not any more!

Online share market trading platforms such as Sharesies in New Zealand and Robinhood in the US have opened the way for anyone of any means to get involved in the markets. These platforms enable anyone to build up their financial literacy on a shoestring. There are lots of other online investment platforms similar to Sharesies and Robinhood which gives you a wide choice. 

With sharesies the minimum investment you can make is $5 but with Kernel Wealth, another online investment platform in New Zealand the minimum investment is $100. This is just an example of different rules for different companies.

Mum and Dad investors can buy into a range of diverse companies on a shoestring with sharesies and robin hood which in the long term is good for those astute enough to participate.

Investing in individual companies is not the only way to build up a diverse portfolio; the other way is investing in managed funds or as it is referred to in the States, Mutual Funds. 

When buying into these funds you are combining your money with other investors to purchase units  in the funds. Fund managers will purchase shares in a range of companies on your behalf.

The level of risk can vary depending on the industry in which the fund manager invests your money.

These investments are generally referred to as Growth Funds which have the potential to grow your savings but at a higher risk. 

Those investors who want a mixture of high risk and low risk funds will invest in what is called Balanced funds. This is a combination of growth and balanced funds. Investors may have the option of choosing which percentage of their investment they would like in growth or conservative funds..

Diversification is an excellent wealth building strategy for the average investors who wants to create a nest egg for the future. It is a matter knowing what you want to achieve with your investments and investing accordingly.

About this article

This article is based on the writer’s experience and may not be applicable to your personal circumstances therefore discretion is advised. You are welcome to use this article as content for your ebook or website. Feel free to share this article. 

www.robertastewart.com

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Share consolidation

Share consolidation-what is it?

One term you do not hear very often is share consolidation. It is a term seldom used because not many companies have used this as an option. This article sheds more light on the term. Hopefully I have explained it well enough in terms that even the novice investor will understand.

Share market price increase may be misleading

If you are a casual share market follower and notice a particular company’s share price has jumped up in price suddenly and you are thinking, “What have I missed out on,” then it all may not be as it seems.

Let me explain.

Years ago around 2001 I think, I owned some shares in Air New Zealand. The company almost went broke. The company almost went bust. It was the government who bailed them out. The share price went from about $1.95 per share down to 14 cents per share. The share price increased a little but still only a fraction of what I bought them for.

What the company then did was increase the share price but you owned fewer shares.

This is how it works:

For the sake of simple mathematics, let’s assume company xyz’s share price is 20 cents per share.  xyz then decides to increase the price of the share to $1. 

If an investor owned 1000 shares at 20 cents, they will now own 200 shares worth $1 each.

Unless you are a follower of the share market you may be unaware of this actually happening. 

I don’t know how often this situation occurs but it may pay to do your homework if a particular share increases dramatically for no apparent reason.

What I have just tried to explain is known as reverse stock split or share consolidation.

This makes the company more attractive to investors. They may hold fewer shares but the real value of the total shares in that particular company is the same. It is just that now they hold proportionately fewer shares.

Share consolidation can be viewed negatively by investors as a company in trouble and this could impact the share price.

One reason why a company may choose share consolidation is that if it’s shares fall below $0.50 for 30 consecutive days then it will be delisted. This is applicable to the New York Stock Exchange and there may be different rules for other countries. 

Another benefit of share consolidation is that it will mean fewer share certificates will need to be printed which will reduce costs.

ABOUT THIS ARTICLE

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

 

www.robertastewart.com

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How to handle the share market crash

How to handle the share market crash

Written by R. A. Stewart

Cool heads are needed during a time when the value of your kiwisaver or managed funds have dropped in value. It is time to consider what your options are so here are some dos and don’ts to think about.

The dos

Do keep a cool head and weather the storm. Investing in the markets is a long term game.

Do keep reading the financial pages to keep up to date with the financial world.

Do ensure you still deposit at least $1040 into kiwisaver per annum in order to get the $520 tax credit.

Do remember that when the market has lost value, you will get more shares for your money when you buy.

Do keep adding other strings to your bow

Do keep saving a portion of your income.

The don’ts

Don’t change to conservative funds if you are in balanced funds

Don’t keep looking at your kiwisaver balance every day

Don’t lose perspective on life

Don’t listen to prophets of doom 

Don’t ignore your career/job objectives

Don’t stop saving

Always remember

Your greatest asset is your ability to earn an income. Become more valuable to employers and no one can take that away from you, not even inflation.

ABOUT THIS ARTICLE: This article is of the opinion of the writer and may not be applicable to your circumstances so discretion is advised. You may use this article as content for your ebook or website.

www.robertastewart.com

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Prioritising your spending

Prioritising your spending

Written by R. A. Stewart

Life is all about making prioritise and it is not all about money and how you prioritise your spending but about what you do with your time. We have different financial commitments and different levels of income but when it comes to time, we all have an allotted 24 hours in the day, no more and no less but our income and how we earn our income will have an effect on how much time we have to devote to the important things in our life.

Many people sacrifice their time for money by spending all of their time working leaving little time for anything else. They are out of balance.

If you have a specific goal in mind such as saving for a house deposit then the sacrifices may be worth it in the long term. Maybe because only you will know whether the long days were truly worth it. It al depends on what your priorities are.

What factors should you consider when setting priorities?

Here are several to consider:

Your commitments

Your commitments will have an effect on what you are able to spend your money on. Most people have commitments of some kind and these will having a bearing on your financial spending. 

Your debt levels

Any debts you may have will have a bearing on your spending. If you have a mortgage or other debt then saving up for an overseas holiday will not be on the radar nor will spending money on things which are considered to be wants rather than needs.

Your age

Your birthday will make a difference to how you spend your money. If you are in your 60s then you are not going to plan 30 years ahead. The young ones have tat luxury. Retired people are at the spending phase of their life. That does not mean to go out and blow your retirement fund all at once but rather enjoy life to the max by ticking off those items on your bucket list.

Your family circumstances

Your family situation will determine your priorities. A single person without any kids will have different priorities than someone who is married with kids. A married person is not going to make decisions based on themselves but has to consider their spouse and plan their journey together.

Your health

Your health is another factor to consider. If you have issues concerning your health then that will be a factor in how you prioritise your spending because you may not be able to work the hours you previously did which means that less money is coming in.

Your career

Another factor. Every career has its own unique set of challenges which have to be dealt with. 

Your pets

If you own pets then you have a responsibility to take care of their needs. However, it is important to think things through before deciding to get a pet because they can be a drain on your time, not to mention finances.

What now?

Who am I to tell you what you should do with your money but if your priorities in life always involves spending money and not investing it then somewhere down the road it will all catch up with you with that medical or dentistry bill and you do not have the funds to pay for it.

Hopefully this will at least serve as some kind of guide to setting goals for managing your money.

ABOUT THIS ARTICLE

The information contained in this article is of the personal opinion of the writer and may not necessarily be applicable to your personal circumstances. Please feel free to share this article. You may use this article as content for your blog/website/ or ebook.

www.robertastewart.com

 

Start investing on a shoestring

Sharesies makes it possible for anyone to get into buying and selling shares. It is an online share market platform where you have the option of purchasing shares in individual companies or in various funds (managed/mutual funds). You can even start with $5. This is a no brainer because it gives investors young and not so young the chance to improve their financial literacy. There is certainly no substitute for experience when it comes to learning and this is applicable to everything else, not just investing.

Join sharesies here: https://sharesies.nz/r/377DFM

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Bank scam warning

Bank customer scammed out of 40k 

A BNZ bank customer was scammed out of $40,000. His experience is a timely reminder to all not to share passwords. 

The man who had received a sum of money from the sale of a house received what he thought was an email from his bank and gave away his log in details.

$40,000 went missing from his account as a result but it wasn’t all in one lump sum. Instead it was $5,000 here, $2,000 there to different names and email accounts.

$15,000 of the money did bounce back but about $18,000 of the money is still missing.

The bank customer complained that the bank did not contact him in more than a month.

The BNZ said that because the customer gave away the code to the scammers which gave him access to his bank account they were unable to return most of the missing money to his account.

The bank also said, “They would never ask their customers to click on link in an email or ask for their password.”

Sending a hyperlink was something scammers tend to do.

There are steps which people can take to protect themselves against cyber crooks: Making use of strong passwords, not sharing passwords with anyone and setting up a two-factor authentication system.

As for this particular customer. It was too late for him and he is still trying to get the bank to take responsibility for his loss.

MY PERSONAL ADVICE

Don’t leave all of your money in just one account but invest some in an account which cannot be assessed online.

www.robertastewart.com

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The averaging strategy in the markets

INTRODUCTION

Investors must realize that investing in the markets has its ups and downs (literally) that it is important to keep it all into the right perspective if investments do not go your way. There is a method of playing the markets in a way that you can take advantage of the market drops. 

The Art of Averaging 

Averaging is a term one may come across in the markets now and again; what this refers to is the average price paid for a particular share if you had bought shares in that particular company.

To calculate the average price paid for a particular share you add up the total amount you have paid for the shares and divide that by the number of shares you have bought in that company. 

The answer is the average amount that you have paid per share.

Try this mathematical question:

There are five numbers 10, 20, 30, 40, 50

What is the average number?

The calculation: 

Add up the five numbers:  10 + 20 + 30 + 40 + 50 = 150

Divide the total of the five numbers (150) by 5

150 divided by 5 = 30 (answer)

You can do this easily with a calculator.

There are so many share trading platforms available these days that investing directly into the sharemarket has never been easier for the ordinary man and women.

So how does averaging work?

If you purchase stock at regular intervals you will pay different prices for each stock because share prices go up and down. Imagine if you bought something at the supermarket last week at the full price then bought the same item this week on special. The average price you paid for the item will be somewhere between the higher price and the lower price.

The sharemarket works like that. By purchasing a particular stock at regular intervals you will manage to pick up some shares in it when the price is lower. This is the advantage of saving regularly. 

In fact I think there is a case for purchasing more shares when the price is low. The average price paid per share is determined by calculations as explained earlier. 

The averaging strategy can also be used in cryptocurrency investing. 

Bitcoin is more volatile than the sharemarket so an astute investor who has an eye for a bargain can invest when the price has dropped.

There are so many share trading platforms available that playing the markets is accessible to everyone. I have joined two of them in New Zealand. Most countries have share trading platforms available. Signing up for them is easy; you require some form of identification. Just follow the directions and you are all set up.

TO SUMMARISE

Playing the markets requires a positive mindset and a cool head. If you have these you can profit from falling markets. Averaging is a method that takes advantage of falling markets. 

ABOUT THIS ARTICLE

Robert Stewart has a blog with other articles of a finance nature. Visit www.robertastewart.com Feel free to post this article on to your site, use it as part of your ebook, share it, print it, even sell it.