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Financial know how

Readers are leaders.

INTRODUCTION

There is no excuse for financial ignorance when there is so much finance information available on the internet and in printed form. Becoming familiar with the various forms of investments will hold you in good stead for the future.

How to gain financial literacy

Your financial literacy is your ability to make financially smart decisions. You were not born financially smart or dumb; your financial knowledge or ignorance was developed over a period of time. I assume that you are not ignorant otherwise you would not be reading this. So without further ado, here are some ways of gaining financial literacy.

Your own experience

There is no better teacher than your own experience but that does not mean you have to go ahead and make all of the mistakes it is possible to make. It is more a case of using your personal judgment based on your knowledge and the advice of others but you will make mistakes along the way; it is a part of the learning process. It is a matter of who to take advice from and whose advice to treat with a grain of salt. 

An excellent way of gaining financial literacy is to register with one or more of the share market online platforms where you are able to buy and sell shares online. Only a minimal amount of money is needed to get involved. In New Zealand sharesies.nz is one such platform but is by no means the only one around. Other countries have similar such share trading platforms available.

Experience of others

The easy was to learn is from the mistakes of others. All you need to do is to keep your eyes open; many people do not do this and instead follow others like sheep. This is not necessarily the best way. In fact history has taught me that following the crowd is often the wrong way. A classic example is the share market when a stock is valued well above it’s true worth because so many people have jumped on the bandwagon and bought shares in that particular company because everyone else is doing it. It is young people without experience in the markets who are prone to this mistake.

It pays to go against the crowd; what this means is that you look for bargains in the markets whether it is gold, shares, property, and so forth. You do not have to experience what others are experiencing if you have the ability to assess what is a good investment and what is not.

Be prepared to listen to what the older generation have to say. Many of their opinions will be based on their own experience.

Books

Ignorance is no excuse as far as not being financially educated because your local library will stock books on finance. There are some terrific books on finance, some I recommend are, “Rich Dad Poor Dad,” by Robert T. Kiyosaki with Sharon L. Lechter. They have several other books which are recommended reading. “How to Be Rich & Happy” by Hans Jakobi, Australia’s wealth coach is another book I recommend. Hans also has several other books published, “Underground Knowledge” and “Due Diligence,” are two of them. “Making money made simple” written by Australian financial advisor Noel Whittaker is a good read. Frances Cook, Mary Holm and Martin Hawes are other excellent financial authors.

The internet

There is a lot of information available online on finance and investing; a simple google search will bring these up but like listening to your mates you have to use your own judgement when assessing the information from some sites and how it relates to your own personal situation. Martin Hawes and Mary Holm are both reputable advisors with good websites.

Newspapers

Most newspapers carry financial information and these are worth reading. Cut out articles that interest you; they make good reading in a year or so. 

www.robertastewart.com

ABOUT THIS ARTICLE

Feel free to share this article or post it on your site. You also have permission to use it as content for your ebook. My blog www.robertastewart.com has down to earth information about everyday finances. 

The information in this article may not be applicable to your personal circumstances so discretion is advised. I may receive a modest sign up bonus if you decide to join sharesies.nz

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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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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Investing for seniors

Investing for seniors

Written by R. A. Stewart

 

Your age is a crucial factor in establishing your savings and investing strategy. Your 20s, 30s, 40s, and 50s are your savings years. It is these years when you build up your assets. 

Your 60s and 70s can be considered your spending years. It is when you tick off items on your bucket list while you are able to.

That does not mean that you do not have to work, a lot of older people are taking this option, not because they cannot make ends meet on their pension, but because they enjoy what they are doing.

In New Zealand, retirees will have access to their kiwisaver account once they reach the age of 65. Money invested in kiwisaver will be in growth, balanced, or conservative funds. Most people during their working life opt for growth or balanced funds.

It is time to decide whether to stay with the status quo or invest in more conservative funds. 

Your age and your health are the two most important factors in deciding which fund to invest your money in. 

Older people do not have time on their side to overcome financial setbacks such share market falls and so forth, therefore if you are 60+ it is a good idea to lean toward more conservative investments but still retain some exposure to risk.

It is worth mentioning at this point that New Zealand financial advisor and writer Frances Cook has a formula for calculating how much exposure you should have based on your age, and it is this…

Subtract your age from 100.

If for example you are aged 60 then only 40% of your portfolio should be invested in the share market.

I do not necessarily agree with this formula and my exposure to the share market is more than her formula suggests I have.

However, that is a personal choice; one that I do not necessarily recommend to you because your circumstances will be different as they are for different people.

If you are connected to the internet and you have a lot of spare cash in your account then I suggest that you place most of your money into an account that is not connected to internet banking. This is to reduce your chances of becoming a victim of internet scammers. 

With internet banking being the norm, this could be difficult in the future though.

In any case I still believe that it will pay to arrange your finances so that if you fall victim to a scammer then not all of your money will be lost. 

Don’t leave all of your money in the one account for goodness sake as some victims of scammers have.

If you are traveling then make sure you don’t have access to your life savings because if you do then so will be a scammer if they manage to get hold of your login details.

Scammers have all kinds of ways to trick people into handing over their login details.

Anyone can be a victim so don’t be proud by saying “I am not that stupid.”

As you get older you will have to invest more conservatively; that does not necessarily mean transferring from growth to conservative funds but investing some of your current savings into low risk accounts. The deciding factor is your timeline. How soon you need the money and funds which are going to be used within 12 months are best invested conservatively.

 

www.robertastewart.com

 

ABOUT THIS ARTICLE

This article is of the opinion of the writer and may not be applicable to your personal circumstances. Feel free to share this article. You may also use this article for your website/blog or as content for your ebook.

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The bandwagon effect!

The bandwagon effect!

“Safety in numbers” is an old saying which is the downfall of many people. We have seen it so many times throughout history that when the share markets are on the rise investors jump on the bandwagon; this pushes the share price up even further. It is the same story that something is only worth what others are prepared to pay for. 

During the 1980s when the markets were humming along investors kept jumping on the bandwagon; some even borrowed money to purchase shares using their current share portfolio as collateral. Higher share prices meant that investors could borrow more. One person told me at the time that he knew someone who took out a mortgage on his home to buy shares.

Then the crash happened on Black Monday 1987; the result was that shares were worth less than the loans taken out to purchase them. In many cases they were ot even worth the price of the paper they were printed on.

The same bandwagon effect which pushed the prices of the shares up also caused the crash as investors jumped off the bandwagon.

We have also seen it in other industries. During the early 1970s farmers were buying bobby calves to hand raise for beef. Prices for beef were high but then prices took a huge dive and prices for some beef cattle did not even recoup the money which was spent raising them. Over supply of beef was a factor. I am speaking from experience here because my father was rearing calves for beef.

Back to the present, it is no secret that cryptocurrency has seen the same kind of bandwagon effect. It has experienced swings and roundabouts and will continue to do so. It all boils down to the fact that something is only worth what others are prepared to pay for. 

What often drives the markets is often the fear of missing out or as it is often called “FOMO.” Others see the success others are having with their investments and decide to jump on the bandwagon without any thought to whether their investment fits in with their goals. The young ones who are not tied down with commitments are mainly guilty of this but not necessarily. A couple of years ago one particular share was on a roll. Its share price increased ten fold and a lot of young investors jumped on the bandwagon; then the share price slid and it fell to one tenth of its peak. The media claimed that investors lost 90% of their money but honestly that isn’t true because it all depends on when they bought their shares. It may be true if one purchased their shares at the peak. 

The Global Financial Crisis led to several finance companies going belly up. There were heartbreaking stories of retired folk losing their entire savings after having everything invested in the one company. The TV advertising for these companies were aimed at the older folk. Many jumped on the bandwagon but investing everything into the one company, well, did they ever hear about diversification?

It is worth pointing out that if there is an opportunity for capital gain then there is also an opportunity for a capital loss.

All investors must be aware that markets go up and down; a cool head is needed during the periods of volatility. The risk you are taking on must be factored into your investment decisions. It all boils down to your timeline and whether the loss of your capital will cause you any distress. It is no good investing in something if the risk of losing your money is going to cause you to lose sleep.

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

www.robertastewart.com

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https://coinbase.com/join/gochwv