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People who should never buy Bitcoin

Written by R. A. Stewart

Bitcoin is the currency of the twenty-first century according to those who are passionate about this type of investing. People who get involved in crypto currency such as Bitcoin or one of the others must understand the risks involved. It is a volatile form of investing. Because of the risks involved there are some people who should never invest in crypto currency. 

Here they are:

1.People who are in debt

If you have a debt to pay then your responsibility is paying off that debt, and the sooner, the better. It makes no sense to be investing in something in order to grow your money yet be paying interest on your debts. People who have debts to pay have no discretionary spending money until their debts are paid.

  1. People who are saving up for a house deposit

The best investment for your house deposit money is something which is more conservative such as balanced managed funds or conservative managed funds. Bitcoin is not the place for your house deposit money because if you did go ahead, invest all of your house deposit money in Bitcoin, most of it could disappear at the drop of a hat, such is the volatility of Bitcoin.

  1. People with Children

I believe that people who have children should not invest in Bitcoin, unless they are wealthy, and that any losses are not going to affect their lifestyle. People with children have the young one’s future to consider when making plans for the future.

  1. People who are Timid

People who cannot stomach the thought of losing money whether it be betting on the horses, investing in cryptocurrency, or playing the share market should definitely leave Bitcoin alone. Investing in crypto-currency is certainly not for the faint-hearted.

  1. People who have a mortgage

For the same reason as those with consumer debt. Paying off any debt means you will have less interest to pay.

  1. People with a student loan

If you have a student loan, then you are responsible for paying that back and should never invest in Bitcoin until that debt is paid. 

Never begrudge having a student loan to pay because investing in future education is an investment in the future. The key is to choose a course which will lead to a career you really want to do.

Investing in Bitcoin should only be done with discretionary spending money and not with money which is needed for a purpose such as a car or overseas travel. 

Here is a question for you, “Should retired people invest in Bitcoin?”

My answer to that question is, “If they can afford to lose it!”

If a retired person spent a grand or so on an overseas holiday, that is considered cool by some, yet, if they lost a grand on Crypto currency, these same folk would think that’s foolish.

Whether Bitcoin has risen or fallen, it is on paper only. It is only a profit or loss when it is sold. Always remember, something is only worth what others are prepared to pay for.

About this article: You may use this article as content for your blog or website. The information contained here is of the writer’s opinion and may not be applicable to your personal circumstances therefore discretion is advised.

Checkout my other articles on www.robertastewart.com

 

Have some spare cash to invest in Bitcoin?

Then check out the Coinbase, a well-established crypto exchange. Coinbase makes it easy to buy and sell bitcoin. Check it out here:

https://coinbase.com/join/gochwv

 

Disclaimer: I may earn a small commission if you sign up with Coinbase.

www.robertastewart.com

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Have you joined KIwisaver yet?

Now is a good time to join kiwisaver if you have not already

Written by R. A. Stewart

It is a good time to join kiwisaver if you are young and just starting out in the world. If you are over 30 and have not already joined kiwisaver then why not? Kiwisaver is the New Zealand retirement scheme. If you are in work you will get the equivalent of 3% of your gross wages from your employer deposited into your kiwisaver account. 2%, 4%, or 8% (you choose) of your gross wages will be deposited into kiwisaver and deducted from your pay. You can also make voluntary contributions to your kiwisaver account. This is an option used by those who are self employed or not in work.

The government’s contribution to your kiwisaver is what makes this a no-brainer. You will receive $520 of government money into your kiwisaver account but you need to invest at least $1040 to receive the full $520 otherwise the government contribution is 50% of your contribution. This is per annum; in other words you need to invest at least $1040 into your kiwisaver account per annum to receive $520 of government money every year.

The Kiwisaver year begins on July 1 and ends June 30 the following year. If you are on part time work and it looks as though your kiwisaver contributions are going to be less than $1040, you can make voluntary contributions to ensure your own contributions reach $1040.

In order to take advantage of the falling share prices you need to be in a growth fund or have some portion of your portfolio in a growth fund, otherwise called a balanced fund. If you are in a conservative fund then you are going to miss out on the market rebound. Financial experts will tell you that if you are in a growth fund then you need to leave it invested for at least five years. That way, if the market falls during this time there will be time for it to recover and recoup any losses which it has to be said are only paper losses.

Money which is needed for the short term such as a holiday abroad next year is considered short to medium term money. If you had this money invested in a growth fund you may find that your spending money for your trip has been depleted therefore, to reduce this from happening investing in something less risky is an option taken by a lot of holiday makers even though the return on this money is less than the inflation rate.

If you are prepared to take the risk then you might consider investing your short term money in growth funds in the hope of increasing your capital but it is important to understand that whenever there is an opportunity for capital gain then there is a chance for capital loss.

It cannot be stressed enough that it takes a cool head to live through the ups and downs of the share market and be relaxed about it. One thing you can always bank on is that the share market will go up and down. It is important to have a strategy in place to take this into account.

Diversification minimizes your risk. Diversification is when you spread your investment among several companies. One company might fall over but not the whole lot.

Some may argue that if you plunge all your money in one stock then you will make a killing; that is true, but you never hear of those who tried that and lost. If you are going to do that then it should be done independently of your main investments rather than risk your retirement savings going down the drain.

ABOUT THIS ARTICLE

The information in this article is of the writer’s own opinion and may not necessarily apply to your personal circumstances. You are advised to seek professional financial advice if you require assistance. You may use this article as content for your ebook or website. Check out my other articles on www.robertastewart.com

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Share Market advice for beginners

Beginners Guide to the share market

Written by R. A. Stewart

You do not have to be rich to get involved in the share market these days with online share market platforms such as Sharesies and Hatch which provide a gateway to novice investors.

If you are from a country other than New Zealand or Australia then Robinhood from the States is a share market platform which you can use.

Here are my tips to follow if you are a complete beginner.

Tip 1: Shares go up and down

The value of your shares will fluctuate; that is the nature of the markets. It is important not to focus on your shares but rather on saving and letting the markets take care of itself because if you are strategic with your investments then falling markets will not scare you. 

Tip 2: Know why you are investing

Have a clear plan on what the money’s for. Is it for your retirement, a mortgage, a vehicle, or as a rainy day fund. 

Tip 3: Invest money you can afford to lose

Money which is invested in the share market should only be money which you can fully afford to lose because of the volatile nature of shares, however, you can choose a conservative funds when investing in managed funds. It all depends on your time frame. If the money is needed in the short term then investing in conservative funds will be your best option. 

Tip 4: Know your risk profile

Your risk profile is the level of risk you are prepared for or are willing to take. If you are young you are able to take more risks because you have more time to recover from financial setbacks.

Tip 5: Not a substitute for kiwisaver

Online investing  platforms such as Robinhood, Sharesies, Hatch and the like should not be a substitute for your retirement fund, in New Zealand that is called Kiwisaver)

Tip 5: Not a get rich scheme

Investing in the share market is a long term game; it is not a get rich quick scheme. Don’t be taken in by the stories of those who have made a share market killing because you never get to hear about the losses and it is likely that people who made that killing will spend years trying to make another killing and lose all their gains.

Tip 6: Patience is a virtue

It is time and not timing which is the key to making money in the share market. Patience investors are rewarded handsomely if they stay onboard rather than jump ship during stormy seas.

Tip 6: Do your homework

It is important to do your homework on the various companies you plan to invest in and not just invest haphazardly. The alternative is to invest in managed funds; the fund manager will choose the companies for you.

Tip 7: Take responsibility

Don’t blame anyone for your mistakes, take responsibility for them and learn from them; that way you will become a better investor.

Tip 8: Get right advice

Listen to the right people. Prior to the Global Financial Crisis, some financial experts were saying “The high interest rates do not reflect the higher risk investors of finance companies are taking on.”

Well guess what happened? A number of them folded.

About this article

The information in this article is of the writer’s own opinion and may not be applicable to your own personal circumstances therefore discretion is advised. You may use this article as content for your blog or website.

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

Disclaimer: I may receive a small sign up bonus if you join sharesies.

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Cost of living crisis affecting retirement savings

Cost of living crisis affecting retirement savings

Written by R. A. Stewart

Thousands of New Zealanders have suspended contributions to their retirement fund due to the cost of living crisis and this will affect them when their retirement comes around.

New Zealand financial adviser Carissa Fairbrother advised people to keep sowing into your kiwisaver whatever your financial circumstances. Look at where else you can make cutbacks because not investing into your Kiwisaver will affect you when you retire.

Kiwisaver is New Zealand’s retirement scheme; it is voluntary, unlike the retirement schemes of other countries which are mandatory.

There is a $520 tax credit per annum for contributions to Kiwisaver but to obtain this investors will need to deposit a minimum of $1040 every year. This is just like getting 50% interest on your money for the first year the money is deposited.

Anyone who is a New Zealand resident can join kiwisaver. There is no upper or lower age limit. People under the age of eighteen or sixty five and over are not eligible for the $520 per year tax credits. It is still a good idea to join kiwisaver despite this for several reasons.

The $520 tax credits or government incentives as they are sometimes called is paid out in July into your Kiwisaver. If you contributed less than $1,040 during the previous year then you will receive 50% of your contributions.

The Kiwisaver year begins on July 1 and ends on June 30. It makes sense to check your contributions during the year and to make sure that you deposited at least $1040 by June 30.

One is it will give the young ones a good start to life as far as savings are concerned and it will also give them a good education in finances. 

For those aged 65 and over, it is still a good idea to keep contributing to your kiwisaver if you are not going to be using it in the short term.

Buying your first home

If you are purchasing your first home you may be able to use some of your kiwisaver for a deposit. It is all the more reason to start saving as early as possible as it will enable you to reach your goals quicker.

There are other circumstances where you may be able to access your Kiwisaver early. These are if you have a terminal illness, you are moving overseas permanently, or due to financial hardship. There are lots of hoops to jump through before you can access your money.

It is all the more important to have a rainy day fund when everything is going well for you and not just fritter away your discretionary spending money because things do go wrong in life.

It is never too late to join Kiwisaver, you can still join even if you are 65, though you are not eligible for the government incentives. It is still worth your while joining. It is a good way to play the share market.

You are never too young to join kiwisaver. You may not be eligible for the government incentives until you are 18 but joining early then having family members make contributions while you are still at school will give you a good financial platform for the future. Who knows, a rich uncle may leave you a sum of money in his will to be deposited into your kiwisaver.

About this article

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 part or all of this article as content for your ebook, website, or blog.

www.robertastewart.com

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5 Factors which determine your risk profile

Factors which determine your Risk Profile:

Written by R. A. Stewart

Your risk profile is the amount of risk you are advised to take with your investments. There are many factors which determine your risk profile with the main one being whether the money you are investing is needed in the short term, medium term, or long term. 

Short term is when you need the money within 12 months

Medium Term is when you need the money within 5 years

Long term is when you need the money in more than five years time

Here are the main factors in determining your risk factor:

Factor 1: Your age

Young people have one thing in their favour which the older ones don’t have and that is time. The young ones have more time to recover from financial setbacks such as a share market crash, a job loss, or whatever, therefore are about to invest in growth funds which can be volatile. Older people need to be a little more conservative. New Zealand financial advisor Frances Cook has a formula for working out what percentage of your portfolio should be in shares; it is this: subtract your age from 100. Even if you are in your twenties that does not mean you should be reckless with your money and invest into some kind of risky venture. 

Factor 2:Your health

Your health is a major factor in determining your risk factor. If you have a health condition which requires or may require expensive medical treatment in the future then investing in growth funds may not be your best option because you do not want to lose your money just when you need it. This does not mean that you should not invest anything in growth funds but just not most of it. It may be a good idea to set up a bank account for those medical bills.

Factor 3: Your Personal Circumstances

Your own personal circumstances need to be taken into account. If you are single with no commitments then you will be able to take more risks with your money than someone who is married with children.

Factor 4: Your Debts

Your debts are a big factor in what you should do with your money. There is no point in investing your money at 5% interest when you are paying 15% interest on your loans. People with debts have a responsibility to pay off their own debts and need to prioritise that before turning their attention to investing. 

Factor 5: Your Temperament

Your temperament is a factor. If you are going to lose sleep at the thought of losing your money; something which can happen if you are investing in the share market, then going for more conservative funds is better for you but when it comes to long term investing such as your retirement fund then investing too conservatively will mean that you will likely end up with a lot less money in the kitty when you retire.

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 or ebook. Feel free to share this article with others.

www.robertastewart.com

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5 Ways to Diversify your investments

5 Ways to Diversify your investments

To have a diverse portfolio means to have your money in several places so that if one company or industry is in trouble then income from your other investments should at least minimise the shock.

There are 5 ways to diversify your portfolio. 

Number 1: Invest in several industries

Investing in different kinds of industries protects you from a downturn in one. With the online share market platforms I am with I have investments in a building company, an energy company, a farming retailer, phone company, and a New Zealand milk supplier. This diversification technique minimizes risks and gives me plenty of interest too.

Number 2: Invest in several funds

If you invest in managed funds and that includes everyone who is in Kiwisaver then you will be in various types of funds; growth, balanced, or conservative. The best strategy is to invest in the fund which is right for you and that depends on how soon you need the money. Long term, medium term, and short term money should be in growth, balanced, and conservative funds respectively but it all depends on your risk profile.

Number 3: Invest in different platforms

Most of us have heard of the online investing platforms such as Sharesies, Hatch, Investnow, Kernel Wealth, and Robinhood. Investing in several different platforms will help cushion you against the shock of having one of them fail, and certainly, there is no guarantee that this will not happen. I advise not investing all of your life savings into one online platform.

Number 4: Invest in different asset classes

Investing in different types of asset classes will enable you to withstand a downturn in one class of asset. Investing in fixed term interest, the share market, gold, and property are all different types of assets. It all depends on what the right kind of assets are right for your kind of personal circumstances. 

Number 5:Invest in different companies

This is very important. It is unlikely that all of the companies will fail even though the industry is going through a bad patch. This rule is just as applicable to investing in finance companies for a fixed term return as it is for shares. 

Benefits of Diversification

The number one benefit of diversification is it reduces your portfolio risk. If you placed all of your eggs in the one basket then you could lose it all if that one company went under and it did happen to some investors during the 2008 Global Financial Crisis (GFC) and 1987 Sharemarket crash (Black Monday).

It can be enjoyable for investors to own a little bit of a number of countries. Micro investment platforms such as Sharesies, Hatch, and Robinhood make this affordable for Mum and Dad investors.

Downsides of Diversification

Diversification can be time consuming but then everything worth doing is worth doing well. Investing in managed funds or mutual funds as they are called in the US is an option for busy people. More transaction fees and commissions is another downside to diversification and that could reduce your short term gain.

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.

 

Sharesies is an accessible and straightforward way to invest in the stock market. You can get started on your investment journey and start building your wealth. However, before making any investment decisions, it is essential to do your research and seek professional advice if necessary.

 Join Sharesies here

Disclaimer: I may receive a small commission if you sign up with Sharesies.

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Your Investing Risk Profile is an Important Factor

Working out your risk profile

Investing money has its risks, more so if you are prepared to go for growth type of investments but you may not have the stomach to take on risky investments.

It all depends on your investment time frame which basically means how long it will be before you need the money.

The longer your time frame the more risk you are able to take with your money.

There are factors which determine your time frame and they are:

Your Age

Obviously if you are 65 then you are not going to set a 30 year savings goal, if you are in your 20s you can take more risks but that does not mean you should be reckless and just invest all your money in Bitcoin in an attempt to get rich quick.

Your health

Your savings goals

The key strategy whatever your risk profile is diversification.

That is to spread your portfolio over a wide range of industries. This is possible for the ordinary man and woman in the street who are able to invest in managed funds where your investment is combined with those of others. It is then up to the fund manager to handle all of the investments. This is exactly how kiwisaver operates.

Each fund will give you an option of investing in Conservative, Balanced, or Growth funds and your decision of which fund to leave your money in will be determined on whether you can stomach heavy losses should the share market go belly up. If the thought of losing your money will cause you sleepless nights then you should go for balanced funds. Conservative funds will not grow your money at the same rate as balanced or growth funds will and once the fund manager withdraws their fees it may feel as though your money is not growing at all.  As far as Kiwisaver is concerned, the government will contribute 50% of what you put in to a maximum of $520 every year so at least this would make it worthwhile for you to at least contribute $1,040 a year to get the $520. This will seem like obtaining 50% interest on your  $1,040 for that year.

It all adds up and no one is going to reach the retirement age of 65 and regret that they contributed to their Kiwisaver.

Your risk profile is not the only determining factor in deciding which fund to choose. If you are saving for a deposit on a home then you are not going to want to risk losing your money in the share market which will happen if you had all of your money in Growth funds only for the markets to tumble.

Investing in growth funds for long term growth and taking needless risks are not the same thing.  If you invest in something dodgy without knowing anything about what you are investing in then you are asking for trouble.

Your age is another factor to consider. When you are young, it is advisable to go for growth funds because you have more time to recover from a financial setback such as a market crash, whereas someone nearing retirement would have their retirement plans affected should this occur.

It is your money however and your own responsibility to decide where you are going to invest so learn all you can about the various types of investments and in time you increase your financial literacy.

It is sensible to diversify and invest in a range of industries. Placing all of your eggs in one basket  is not sensible. There are stories of those who did just that and lost during the Global Financial Crisis as several finance companies fell.

The information given here is my own opinion and not given as financial advice. It is best to seek professional financial advice if you are unsure.

Note: Kiwisaver is New Zealand’s retirement savings scheme and this information may not be applicable in your own country. 

www.robertastewart.com

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7 New Year’s Resolutions which are Destined to Fail

  1. Lose weight

A New Year’s resolution to lose weight is destined to fail because it is vague and not specific. It does not say how you plan to lose weight and how much weight you are going to lose. A better goal will be “I am going to Give up going to fast food outlets” or “I am going to join the local running club.” If you are going to give something up then it may be an idea to have some alternative healthy options in mind. Focus on living an active and healthy lifestyle and the weight issue should take care of itself.

  1. Save Money

A New Year’s resolution to “save money” is just as vague as a goal to lose weight. There is no power to it. If you are just frittering away your discretionary spending money and have little or nothing to show from your labours then something has to change in order for your finances to change. You are better advised to decide on what you are saving for and take the steps needed to get there. Joining kiwisaver if you are not already enrolled has to be your number one priority. There are share market platforms such as Sharesies, Hatch, and Kernel Wealth which are set up to enable ordinary people to invest in the share market.

  1. Get Fit

A New Year’s resolution to “Get Fit,” is another one which is destined to fail because it is too vague and not specific enough. How you are going to get fit is not answered in a “Get Fit” resolution. If you have a “Get fit” resolution then what happens is that after a couple of days of running around the block or a few games of backyard cricket old habits will take over and your New Year’s resolution will become a distant memory.

  1. Learn to Swim

“Learn to swim” as a New Year’s resolution is not specific enough. It would be better to have a goal of, “To take lessons at the local pool once a week,” or to resolve to practice one new swimming skill every week. It is consistency which drives results. 

  1. Learn to Drive

Another example of a vague goal. It is better to have a New Year’s resolution of “I intend to sign up for driving lessons on New Year’s Day or whenever the Driving School is open for business after the holiday break.

  1. Get a Job

Deciding to “Get a Job” as your New Year’s resolution means that just taking any job which comes along will fulfil your goal. If that is what you want; that is fine but if you have something specific in mind then specify it otherwise you will end up with nothing. It is worth keeping in mind that many people will work at something they do not like until something more suitable comes along.

  1. Learn a new Language

This is another example of a goal which is not specific enough. There are dozens of languages you could learn so which one are you going to tackle? It will be better if you set a goal of “I will learn one new French/Chinese/Italian or whatever word per day. Such a goal is specific and tells you what you need to do in order to achieve your goal.

 

Your New Year’s resolution needs to be specific and have an action in it otherwise it will be just a wish. It is your desire which will enable your New Year’s resolutions to become the permanent change you are seeking. Just take one day at a time and see what happens.

www.robertastewart.com

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My Experience with Network Marketing

Network marketing

The success of network marketing companies such as Amway, Herbalife, and Kleeneze has proved that the Multi Level Marketing concept can work if you choose to join the right company and if you approach these schemes with the right attitude and are prepared to spend a lot of money, in some cases 1000s in order to progress up to the highest level in the company.

Almost any product or service can be marketed through network marketing but the main players in the MLM industry seem to be those which focus on nutrition and personal care products.

Any company which promises high returns by recruiting others into the scheme with the absence of tangible products is likely to be a pyramid scheme which is illegal in many countries including New Zealand, Australia, Canada, The UK, and Ireland. The promoters of these schemes describe them as MLM or network marketing companies in an attempt to legitimize them.

If a proposition seems too good to be true then it most probably is, there is no such thing as a free lunch, if in doubt then seek legal advice.

The money to be made in network marketing is in the recruiting and training of others. The object is for your team members (the persons you recruit or sponsor) to duplicate your efforts.

Does this sound like pyramid selling.? Well you be the judge because there are some very well-known companies who sell products in this manner.

Amway which was established in 1959 was the frontrunner in the network marketing field. Herbalife (established 1980)

Then there is Melaleuca which sells products using tea tree oil. Melaleuca which is the botanical name for tea tree has tried to distance itself from the network marketing image by using the term referral instead.

All these companies would almost certainly scoff at suggestions that they are all pyramid schemes. 

Many people who have reached the top of the tree in network marketing have done so only after investing a great deal of money (1000s) and in some cases going into debt but whether they have made any real money is another matter altogether.

The British company Kleeneze (established 1923), is different from other MLM companies in that agents drop off catalogues at people’s homes, collect them a few days later, and if there is an order deliver the goods to them perhaps a week to 10 days later. This method of selling is similar to Homecare direct shopping in NZ and Australia except that with Kleeneze, you can increase your income potential by sponsoring others into the business.

However as with other companies, finding other people who share your vision and that of the company is a problem. 

Before you commit yourself to one company, do an internet search to find out how others have feared. You will find a lot of feedback in this way however please also bear in mind that the opinions of others may not be a reflection of the company but merely their attitude, the company they joined may not have been right for them and who is to say that is not the right one for you?.

Kleeneze is one company I had success with. By dropping off catalogues at houses then collecting them 2 or 3 days later hopefully with an order much the same as Homecare direct shopping do in New Zealand and Australia but the difference between Kleeneze and Homecare is that Kleeneze is a network marketing company.

Every Kleeneze agent gets 21% commission of all orders collected irrespective of their status in the company. These are orders obtained by dropping off catalogues at people’s homes, picking them up a few days later hopefully with an order and delivering the goods, collecting the money and paying the company minus your commission.

It is in the bonus structure where you can really make the money.

By introducing others into the business, their sales figures are combined with yours to form what is described as volume total.

You earn a bonus on your total volume orders for the month as follows.

Monthly total Bonus

650-1299 10%

1300-2249 13%

2250-3399 15%

3400-5000 18%

5100-7499 21%

7500+ 24%

There are other bonus payments available.

Kleeneze proved very lucrative just by dropping off the catalogues and developing a regular round of customers, I did have three people under me but they gave up after a week or so, one after owing me more than 300 pounds. That is not going to occur now as everyone who joins Kleeneze now has their own account 

The main quality for success with any of these network marketing is passion for what you are doing. Without it you have not a chance of succeeding. Of course agents of the companies concerned will present the companies to you wearing rose tinted glasses, because everyone they sponsor into the business is helping to build theirs.

Melaleuca was a referral company I joined some time ago however I parted company with them when I lost my job.

Each person who joins Melaleuca agrees to purchase 35 points worth of product per month which equates to about $120. This is irrespective of whether you need any product or not. Agents can earn bonuses by referring others into the business. Agents require at least 8 referrals just to pay for their monthly order. A tall order indeed since the products are rather expensive, for example toothpaste around $9 and shampoo $19.95. 

This business would suit people who have contact with others in high paying jobs where money is no object to them

Herbalife is the same but as with all of the other MLM companies, though agents may claim to have received cheques from them for xxx, the amount they have poured into the business is quite a bit more.

To sum up, don’t go into network marketing as a means to get rich quick with little effort, you will be disappointed. Go in with an open mind. Check the credentials of the company and whether it is the right one for you and most of all ask yourself this question “what motivates me”.? If you know the answer then it’s a start.

 

To summarise: Network marketing is not the best way to make money for the majority of people. The majority of people involved in these types of businesses are subsidising those at the top. If you are thinking of joining, keep an open mind and understand what you are getting involved in. Above all else, don’t allow anyone to pressure you into joining.

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. You may use any or part of the article as content for your website/blog, or ebook.

www.robertastewart.com

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Budgets for personal finance

Establishing a budget is an excellent way of tracking your spending and  you do not need to be struggling with money matters in order to benefit from using a budget. 

Budgets can expose some cold hard home truths

Doing a budget can be the simple solution to rectifying a challenging financial situation but few people do a budget because it exposes spending habits which they prefer to keep hidden. Many people do not want to change their habits despite it costing them an arm and a leg.

There are two parts to a budget.

Your income and your spending.

Your income can be wages from a job, profit from a business, or  income from investments.

Your spending covers everything which is costing you money. 

In short if it makes you money it is income and if it costs you money it is spending.

If you can do some simple maths you will soon discover whether you are left with a surplus or a deficit.

If you have a surplus and you are in debt, use the money to pay off your debt.

If you do not have any debts you can use some or all of your surplus for one or more of your goals; this could be saving for a holiday, saving for a house deposit, saving for a car, or investing it in the share market.

There are so many places to invest your money these days that if you did your homework you will find an appropriate investment for your circumstances.

If you have a deficit you need to take some kind of action rather than try and bury your head in the sand because if you do nothing your financial situation will worsen.

There are two things you can do to balance the books;

1 Reduce spending

2 Increase your income

I don’t know how financially literate you are but if you do not understand financial jargon then I advise you to see a financial advisor to discuss your situation. The public library will have information on where to find a budget advisor.

At the Library will will also find good books on how to manage your finances and increase your wealth.

A budget advisor is unable to help you unless you are completely honest about where your money is going. 

It is up to you to make the decision on which sacrifices you are prepared to make. No one else can make that decision for you.

Your spending can be placed in two categories, your needs and your wants. You may be able to reduce some of the money you spend on your needs but it is the money you spend on your wants which you may find easier to eliminate. 

Being able to afford whatever it is you need can be as simple as re prioritizing your spending. It is a matter of transferring your spending from one item to another.

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