3 Things a Financial Advisor should not tell you

3 Things a Financial Advisor should not tell you

Written by R. A. Stewart

Having a financial advisor is one thing but at the end of the day it is you who has to make the decisions of where to invest your money. In other words; you must take full responsibility for your actions. You must also have the ability to discern whether a piece of advice is good, bad, or not applicable to your personal circumstances.

Here are some things a financial advisor should not tell you to do.

  1. Invest in cryptocurrency

Only money that you can fully afford to lose should be invested in bitcoin or other types of cryptocurrency. This is an extremely volatile investment with a short history, therefore it is hard to know where it is heading as far as the price of Bitcoin goes. Anyone who claims to know the future of Bitcoin is probably misleading you. It is likely that they are using data from Bitcoin’s history to predict its future but as they say, “The past is no guarantee of the future.”

Only discretionary spending money should be invested in Bitcoin. It will give you plenty of interest while investments which are for your material goals are growing as you continue to save for whatever it is you are saving for, whether that be a house deposit, car, education, or overseas trip.

  1. Invest your life savings in one company

There is a phrase for this and it is called, “Placing all of your eggs in one basket.” During the Global Financial Crisis of 2007/2008 some New Zealand investors lost their entire life savings after some high profile company collapses. Several finance companies were offering above average interest rates to attract investors and some people let greed get the better of them, but no one would admit to such a sin. Financial advisors who promoted these finance companies were scapegoats. It may be true that it is a mistake to advise someone to invest everything into one company but it is up to each and every investor to take responsibility for their own investment portfolio.

Diversification needs to be part of your financial vocabulary if it already isn’t. Diversification means you invest your money with different companies and across several asset classes. This minimizes risk. Ordinary Mum and Dad investors are able to drip feed small amounts of money into the markets these days with so many online investing platforms available. It is just a matter of choosing one or two of them which fits in with your investing strategy.

  1. Invest in growth funds when you are retired

Investing in growth funds is okay when time is your friend but not when it is your enemy because a market slump can affect your lifestyle if you are retired. This is because retired people are in the spending phase of their life and if the value of your portfolio is down when you need the money then you are accepting a loss. The young ones, however, do not need to panic because they have time on their side and do not need the money in a hurry. By the time they themselves retire the market will have had it’s ups and downs.

I am not saying that you should not have anything invested in growth funds if you are retired, but rather, it should not be money which you can ill afford to lose. It all boils down to how soon you may need the money keeping in mind that time is not your friend.

About this article

The information in this article 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

Retire on a Shoestring

“Retire with Little Money” is your guide to achieving financial freedom, even if you don’t have a large retirement fund. This practical ebook reveals creative strategies and smart budgeting tips to help you retire comfortably on a modest income. Learn how to cut unnecessary expenses, boost your savings with side gigs, and make the most of the resources available to you. With easy-to-follow advice and real-life examples, this book shows you how to build a sustainable retirement plan without relying on a hefty nest egg. Start planning today, and discover how you can retire sooner than you think!

 

https://robertalan.gumroad.com/l/sdzvl

 

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

 Reasons why people remain Poor

 

Written by R. A. Stewart

People don’t just become prosperous for no reason, unless of course they win the lottery and for every person like that there are millions who didn’t win the lottery and go back to their mediocre lives until the next draw.

Here are the main reasons why people remain poor.

  1. Unwillingness to change

People tolerate their financial situation because they are more comfortable with it. They are unwilling to change anything in their life for fear that it will interfere with the routine which they have become accustomed to. Not doing anything about one’s financial situation despite the facts is just plain laziness. It shows a lack of ambition and there is no hope for people like that.

  1. Lack of Financial literacy

Lack of financial literacy is a major cause of financial struggles. This is an easy hurdle to overcome because there are lots of books on personal finance available you can read and you do not have to spend a lot of money to purchase such books. Your local library will have plenty of books on the subject. Frances Cook, Mary Holm, and Martin Hawes are New Zealand authors who have published excellent books on personal finance.

  1. They don’t join kiwisaver

Kiwisaver is the New Zealand retirement scheme. It is a scheme with several incentives such as the $520 per annum top up from the government. Not making any plans for your retirement years will almost guarantee that you will spend these years in poverty. “If you fail to plan, you plan to fail” is a saying which is worth remembering. Responsible people will sign up for a retirement plan of some kind. If you have dependents it is your responsibility to make sure you don’t leave them up the creek if something happens to you so don’t use that argument of, “I may not make it to 65.”

  1. They spend everything

Poor people spend everything they make and do not give any thought to tomorrow. Whether you like it or not, tomorrow always comes. People like this have no vision for the future. They can never see any further than next week’s pay day. If an unexpected bill arrives such as a car breakdown they borrow the money which means that the interest they owe on the borrowed money pushes up the cost of the repairs. It is the same when one of their kids needs a pair of new spectacles. People such as this always have money to spend on lottery tickets or alcohol but the really important things in life take a back seat. Some people would rather spend money on cigarettes than wholesome food for their kids.

  1. They don’t invest

Not investing is a sure fire way to stay poor because inflation erodes the purchasing power of your money if you just leave it in an ordinary savings account. Investing your money in managed funds increases your wealth and your financial literacy. 

  1. Wrong friends

Associating with people who are financially illiterate is another reason why some people remain poor. The poverty mindset of the group will infect you sooner or later. Some of the stupid comments made by some of these people regarding personal finance are not worth listening to. 

  1. Wrong choices

Making wrong choices is at the heart of the reason why most people are poor. It is not just choices in terms of personal finance such as joining KiwiSaver and investing which keep people poor but life choices such as having kids when not in a good financial position and living beyond their means. What you do with your discretionary spending money is a choice. Becoming financially sorted requires vision. Some of life’s most expensive items will arrive at some stage and the person with vision will prepare for these.

About this article

The subject matter is of the writer’s own experience and opinion and may not be applicable to your personal circumstances, therefore discretion is advised. You may use the article as content for your website/blog or ebook. Read my other articles on www.robertastewart.com

“Retire with Little Money” is your guide to achieving financial freedom, even if you don’t have a large retirement fund. This practical ebook reveals creative strategies and smart budgeting tips to help you retire comfortably on a modest income. Learn how to cut unnecessary expenses, boost your savings with side gigs, and make the most of the resources available to you. With easy-to-follow advice and real-life examples, this book shows you how to build a sustainable retirement plan without relying on a hefty nest egg. Start planning today, and discover how you can retire sooner than you think!

 

https://robertalan.gumroad.com/l/sdzvl

Prioritizing your spending

The Waiho Bridge near Franz Josef Glacier, New Zealand.

Prioritizing your spending

Written by R. A. Stewart

Life is all about making priorities and it is not all about money and how you prioritize 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 all depends on what your priorities are.

What factors should you consider when setting priorities?

Here are several to consider:

Your commitments

If you have children then you obviously have different priorities than someone without children. It is their future as well as your own which you need to factor into your plans.

Your debt levels

Paying off your debt needs to be your number one priority because unless that debt is paid, you have no discretionary spending money.

Your age

This is an important factor. If you are in your sixties then you are not likely to set goals with a 30 year timeline. The young ones have time on their side and speaking from an investment perspective can use time to increase their wealth.

Your health

Your health is an important factor. If a health issue has cropped up then your number one priority has to be to manage it and make the most of your life.

Your career

Your career will influence your priorities. Some couples delay parenthood, instead, preferring to ensure that they are on a good financial footing before they have kids. This is the sensible thing to do. 

Your pets

Any pets you have will mean that you just cannot forget about them and forget about them. You are responsible for their care and well being.

It is certainly a good idea to think twice before taking on new pets because they could be a hindrance to you as far as finding a new job. 

If you are fortunate or smart enough not to have any commitments whatsoever then you will find it easier to gain employment in a new town or province. Most of the commitments listed are choices you make and the consequences of those choices are commitments.

There is a cost to these choices and it is the wise thing to do to take this into account when making decisions.

About this article: You may use this article as content for your blog/website or ebook. The contents of this article are of the writer’s own opinion and may not be applicable to your own circumstances.

www.robertastewart.com

Below: Lake Mapouriki 2 miles south of Franz Josef GLacier New Zealand

The P/E Ratio Explained and Why it matters

Written by R. A. Stewart

The P/E Ratio is a useful tool for calculating a particular share’s performance. P/E stands for Price to Earnings Performance. This tool is a useful guide because it tells us whether a particular share is overvalued or undervalued.

The P/E Ratio is found by dividing the current share price of the company by the dividend per share.

If the company’s share price was $5 and the dividend per share was $1 then the P/E ratio would be 20. 

A company might base its P/E ratio on what it has earned in the past (trailing P/E) or what they expect its earnings to be in the future (forward P/E Ratio).

A higher PE ratio indicates that investors are willing to pay a higher share price today compared to its current earnings.

A lower P/E ratio might be a sign that investors are less willing to pay a higher price for the share compared to its current earnings.

It is important not to get sucked in by a value trap-some companies offer what appear bargains but it is really a sign of financial instability.

A negative P/E ratio means that the company has made a loss. This could be due to expansion-that is when the company sacrifices profits to invest in the company.

However, when a company consistently has a negative P/E ratio it runs the risk of bankruptcy.

Making your investment choices

Which is better, Higher or lower?

Some investors prefer investing in a company with a higher P/E ratio due to its potential for growth while others go for companies with a lower P/E ratio on the grounds that the market has undervalued these companies. A combination of both is often used by investors.

Financial experts say, “You should only compare apples with apples when comparing different companies, P/E ratio.” In other words, only compare it with stocks in similar industries. That being said, if a stock has a higher P/E ratio than its competitors it could indicate that the market believes that it has higher growth prospects than its competitors.

A factor which needs to be considered by investors is that past performance is no guarantee of future performance. There are other factors to consider. A company may have a good year but that may be due to a one off event such as a selling off of assets. The same applies in reverse, a company may have shown a one off loss due to investment into the business.

To Summarise

The P/E ratio is the proportion of a company’s share price in relation to its earnings per share. To work out the earnings per share Divide the stock price by the earnings per share.

About this article

The views expressed in this article are of the writer’s own experience and knowledge 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.

Check out my other articles on www.robertastewart.com

How to Fight High Grocery Prices

How to Fight High Grocery Prices

In recent years, grocery prices have been rising steadily, squeezing household budgets and forcing families to find creative ways to make ends meet. The reasons for these price hikes are varied, from global supply chain disruptions to inflation and changes in consumer demand. Regardless of the cause, there are practical strategies that anyone can use to reduce their grocery bill without sacrificing quality or nutrition. In this article, we’ll explore several effective ways to fight high grocery prices.

1. Create a Budget and Stick to It

The first step to controlling grocery spending is to set a budget. It’s easy to overspend when you don’t have a clear plan for how much you can afford. Start by reviewing your monthly income and expenses to determine a reasonable amount for groceries. Be realistic, but also challenge yourself to spend less than you normally would. Once you’ve established your budget, stick to it as closely as possible. Keeping track of your spending will help you stay accountable and allow you to make adjustments as needed.

2. Meal Planning and Batch Cooking

Meal planning is one of the most powerful tools in fighting high grocery costs. Plan out your meals for the week before heading to the store. Focus on recipes that use similar ingredients, so you can buy in bulk and avoid wasting food. This also prevents impulse purchases and last-minute takeout, both of which can strain your budget.

Batch cooking is another strategy to save money and time. By cooking large quantities of food at once and freezing portions for later, you reduce the need for frequent grocery trips and take advantage of bulk buying. For instance, you can prepare a large pot of chili or soup and freeze individual servings for easy meals during the week.

3. Shop Sales and Use Coupons

Taking advantage of sales and using coupons can make a big difference in your grocery bill. Many stores offer weekly deals, which you can find in their flyers or online. Focus on buying items that are on sale, especially non-perishable or freezable products like canned goods, rice, pasta, and frozen vegetables. Stock up when your favorite products are discounted.

Coupons can also be a great tool if used wisely. Many grocery stores have loyalty programs or apps that offer digital coupons. Clip the ones that are relevant to your needs and combine them with store sales for maximum savings. However, avoid the temptation to buy something just because you have a coupon if it’s not something you actually need.

4. Buy in Bulk – But Smartly

Buying in bulk can lead to significant savings, especially for pantry staples such as rice, flour, pasta, and canned goods. However, be cautious not to overbuy perishable items that might go bad before you have a chance to use them. Bulk purchasing works best for products with long shelf lives or items you use frequently.

Shopping at warehouse stores like Costco or Sam’s Club can be helpful, but it’s essential to calculate the cost per unit to ensure you’re actually saving money. Sometimes, smaller packages at regular grocery stores on sale may be cheaper than the bulk version at a warehouse.

5. Embrace Store Brands

Store or generic brands often offer the same quality as name brands but at a much lower price. In most cases, the difference in taste or quality between generic and brand-name products is minimal, especially for staples like pasta, rice, canned vegetables, and household supplies. By swapping brand-name products for store brands, you can significantly cut your grocery bill without sacrificing quality.

6. Reduce Food Waste

A staggering amount of food is wasted each year, and reducing food waste can have a direct impact on your grocery costs. To avoid throwing out spoiled food, make an effort to use what you already have before buying more. Leftovers can be repurposed into new meals, and nearly expired fruits and vegetables can be used in soups, smoothies, or baked goods.

Organizing your pantry and refrigerator can also help reduce waste. Keep older items in front so you’ll use them first, and label leftovers with dates so you don’t forget about them.

7. Buy Seasonal and Local

Seasonal produce is typically cheaper than out-of-season options because it’s more abundant. Learn what’s in season in your area and build your meals around those items. Additionally, shopping at local farmers’ markets can often result in lower prices for fresh produce, and you’re supporting local growers in the process.

8. Consider Substitutions

If a recipe calls for a pricey ingredient, consider cheaper alternatives. For instance, if a dish requires fresh herbs, you can use dried herbs or even frozen ones, which are less expensive and have a longer shelf life. Similarly, beans can replace meat in certain recipes, providing protein without the high cost.

Conclusion

Fighting high grocery prices requires planning, discipline, and a willingness to make small changes. By setting a budget, planning meals, shopping smart, and reducing waste, you can significantly cut your grocery expenses. These strategies not only help save money but also promote a more sustainable and mindful approach to grocery shopping, allowing you to navigate rising prices with greater ease.

Www.robertastewart.com

3 Reasons why people do not get ahead

3 Reasons why people do not get ahead

Written by R. A., Stewart

We have heard the term “Cost of living crisis” a lot in the past few years with people struggling to make ends meet. The government is often made the scapegoat for all of this; whether it is the government’s fault or not,  taking responsibility for your own money management and the choices you  have made is the only way you will get ahead in life. There are three main reasons why people do not get ahead. Each one is explained further. I have written this with the intention of not mincing my words.

  1. Lack of vision

Life is for living but it is not cheap. Whether you are buying a car, enrolling for further information, getting married, having kids, taking out a mortgage, or retiring, being prepared financially for all of life’s stages requires saving. Having the vision to prepare for all of this will enable you to cope with the expense. A person without vision will spend their money as if there is no tomorrow. Living from one payday till the next without any thought for the future. This kind of attitude will lead you to the poorhouse.

  1. Lack of planning

“If you fail to plan you plan to fail,” as the saying goes. Making a plan for your money and putting it to work for you requires vision and discipline. It will help you to get the most out of your money. You need to decide what you are saving for and deposit that money in the appropriate account. A person without a plan is like a person on a life raft; they will go wherever the waves take them. They will spend everything they have then when some unexpected bill crops up they will borrow the money and put it on the credit card. There is a cost to this and it is called interest. 

  1. Lack of financial literacy

This has to be the number one reason why people have poor financial outcomes. A person with no financial literacy will make poor financial choices which eventually lead to poverty. Getting paid more is not a solution to poor money management skills. Getting financial education is easy and you don’t have to spend a fortune on books; your local library will have books on budgeting and investing. You will be able to find such books at your local charity store for a couple of dollars.

About this article

You may use this article as content for your blog or website. The opinions expressed are of the writer and may not be applicable to your personal circumstances, therefore, discretion is advised.

www.robertastewart.com

Attention Men: Don’t let Dating Scams Destroy your Retirement Plans 

Attention Men: Don’t let Dating Scams Destroy your Retirement Plans 

Written By R. A. Stewart

Millions of dollars are lost to romance scams every year and the target of these scams are older men. This is understandable, because retired men are likely to have built their assets up by the time they reach a certain age. 

If you are at that age when you are making yourself available for dating, just be careful because not everyone who joins a dating site is looking for romance, some are scammers who are searching for potential victims. 

If you are contacted by a lady who says she is looking for a marriage-minded man then there are some telltale signs which will indicate that she is not who she says she is and rather than finding a place in your heart she has her eye on your bank account.

Here are the main indicators of a scammer:

  1. She is about 30+ years younger than you and claims that age difference does not matter.
  2. She claims she is from a European country and is working in Africa as a nurse or school teacher.
  3. She claims that she is Christian but the contents of her letter/email do not line up with Christian values.
  4. She does not dress modestly (that is putting it mildly)
  5. She asks you for money.

The fifth one is a sure sign that you are dealing with a scammer.

Once she has gained your trust she will then make up excuses for why she needs the money.

This unfortunate lady will create circumstances why she needs the money, here are some:

My late father has died and I have no money to bury him.

My child is sick and I need money for medical expenses.

I need money for the plane ticket to meet you, etc, etc, etc.

Be aware of anyone who tries to make you feel guilty in order to get you to send them money.

If she says, “If you don’t send me money, my child will die.”

What human being wouldn’t want to help someone in this unfortunate situation?

Most people will feel guilty if they do not do as the lady suggests.

She is using what is known as, “Manipulation by guilt.” It is when someone tries to get you to do something by making you feel guilty.

There is one message for all men: “Don’t give in to any kind of emotional blackmail.” 

As far as dating websites are concerned, there is no shortage of options. It is important to choose a site which is based in your own country or at least a country which has laws that protect consumers.

Don’t sign up to any site which asks you to pay to send messages. What you will be doing is communicating with women who are being paid by the site owner to correspond with men.

Losing money to fraud is both emotionally and financially damaging for victims, even more so when someone you thought you could trust is the scammer. Heartless criminals are taking advantage of people looking for a life.

About this article: You may use this article as content for your blog or ebook. Read my other articles  on www.robertastewart.com

3 Habits which can make you rich

3 Habits which can make you rich

Written by R. A. Stewart

“You don’t have to be rich to invest but you have to invest to be rich.”-Unknown

Forget the lottery, here are three habits that can make you rich beyond your wildest dreams. It does not matter how old you are, how much money you currently have in the bank, or whether you have any experience at investing. If you can look beyond your own personal circumstances and develop these three habits then you are well on your way to financial success. 

So you may be wondering what is the magic formula for financial success?”

Number one habit to develop is:

The Habit of Saving.

Simple, isn’t it. You simply spend less than you make and whatever is leftover is your excess.

All of us have an ordinary savings account where our payment from whatever source goes into. This really should be named a spending account because we spend money from this account using our bank card. It is a good idea to transfer money into another account which is used for saving up for whatever it is we are saving for and this account should not be linked to internet banking where scammers are able to access it.

Saving money gives you financial security and enables you to cover the unforeseen emergencies which crop up from time to time. Medical and dental emergencies, car and household appliance repairs can be expensive so having savings behind you cushions you against these kinds of shocks.

Saving also enables you to reach your financial goals and helps you to become wealthy.

The Habit of Investing

Most people are able to save something from their pay packet but comparatively few people invest that money. For those people their savings becomes spending money. In the end these people have nothing to show for their years of toil and their options are limited due to their lack of finances. 

Investors on the other hand have more options available to them later in life because finances are not a problem. 

The habit of investing also increases your financial literacy which in turn helps you to make better choices when deciding on where to invest your money. 

This reduces financial stress, increases your independence, and prepares you for retirement.

The Habit of Reading

Reading books increases your knowledge. The habit of reading books of a financial nature will increase your financial literacy. It is a fact that most people are not financially literate. They may know how to negotiate loans and how to get a credit card but people who are intelligent do not purchase stuff on credit because they know that it only means paying more for whatever they are buying.

You do not have to spend too much money buying books when your local library has good books available. You might also pick up some good books at your local charity store.

On the internet you can find lots of useful information on personal finance. Ask chatgpt to provide some answers to any questions you have or go to quora.com which is a question and answer site. You need a gmail address to register with quora.

About the article

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

Read my other articles on www.robertastewart.com

Investing with Sharesies is an accessible and straightforward way to invest in the stock market. By following these steps, 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

Book Review: Rich Dad Poor Dad 

 

Written by R. A. Stewart

Rich Dad Poor Dad by Robert Kiyosaki is one of the best selling finance books of all time. It tells the story of two Dads in his life, his biological father who he called “Poor Dad” and his friend’s father, who he called “Rich Dad.” 

His Poor Dad worked diligently all of his life but could not get ahead, his Rich Dad was smarter with his money and was rich. The Rich Dad mentored Robert and helped him become financially literate.

It is not how much money you make but rather what you do with it after you make it and that is the basic theme in this book.

 

In the book, Robert focuses on getting rich through financial literacy, investing, and entrepreneurship.

The most important lesson is to know the difference between assets and liabilities. Kiyosaki reminds readers several times throughout the book the importance of building up your assets and minimizing your liabilities in order to build up your financial portfolio. He makes the point that many people mistakenly think they are acquiring assets when in fact they are accumulating liabilities. A perfect example is of a house which though it may be a family’s biggest purchase during their lifetime is a liability because it costs money to keep and maintain.

Kiyosaki also stresses the importance of a financial education and claims that the education system does not teach financial literacy to the detriment of children.

The book also explains the concept of having money work for you instead of working for money. Poor Dad had the working man’s mindset of working a set number of hours per week for money while the Rich Dad focuses on acquiring and building assets which generate an income.

Writing Style

Robert Kiyosaki writes in a way as though he is a mentor to his readers rather than if he was simply writing a textbook which resonates with so many readers.

The book has had its critics though, one is that it is too simplistic with not enough actionable advice on how to create and build wealth. It has also been criticized for focusing on financial gain and little emphasis on the social or environmental impacts of wealth building. 

Kiyosaki’s dismissal of education does not resonate with everyone who values the education system. He does highlight the shortcomings of the education system, but his message is not going to go down well with parents who are trying to encourage their children to focus on their school work.

Conclusion

Rich Dad Poor Dad is certainly a very good book as far as improving your financial literacy is concerned, but the information needs to be applied according to your personal circumstances. I have no hesitation in recommending Rich Dad Poor Dad as a must read for anyone wishing to get ahead in life.

About this article: You may use this article as content for your blog/website. Feel free to share this article with others.

Check out my other articles on www.robertastewart.com

The cost of a high lifestyle

The Cost of a high lifestyle

Written by R. A. Stewart

There is a huge cost attached to living a luxury lifestyle and this cost will be felt sometime into the future. It is when some of life’s big ticket items will crop up and unless you are prepared for them you will most likely end up borrowing to pay for them. This means that you will be paying interest for such items which means that you will be paying more for them than you should.

I remember as a teenager we were helping a neighbouring lifestyle farmer build a cattle yard. The farmer’s name was Jack, an Irishman. He wanted the cattle yard to look nice but Dad said to him, “There is no profit in having a cattle yard that looks nice.” 

On another day, we went out to Jack’s place to spread fertilizer. It was superphosphate. Dad, my brother Jimmy, and I were there and Dad said to Jack, “I have three fertilizer spreaders in the back of the van.” Jack with a curious look on his face, replied, “Let me see them”.

Dad opened the van door to reveal three shovels. Jack saw the funny side.

We then went about spreading superphosphate around the paddocks.

Why spend more money than is necessary on whatever task you are involved in.

Years ago I was working in hospitality in one of New Zealand’s tourist hotspots (Franz Josef Glacier) when the Head chef drove to the hotel we were working at in a brand new car. A colleague told me that he had bought it for $20,000. My response to that was, “If that was me, I would have bought the cheapest car and invested the rest of the money.

There is a cost of living a champagne lifestyle on a lemonade budget and that cost is financial problems later on down the track. Sooner or later, big ticket items will appear in your life and these will sometimes cost you thousands of dollars. A new car, marriage, followed by children, house deposit, dental and medical bills, and retirement.

Sensible people will prepare for these things by saving a portion of their money every week and investing it in the appropriate funds.

Some people on a good salary spend every single dollar or pound they make living the kind of lifestyle that impresses other people. A flash car, flash clothes, nights out, and have little or nothing to show from working at their job.

All of this because they were living beyond their means. Learn to live modestly and life will be easier for you. This all starts when saving money becomes a habit. That money invested will grow your wealth and when life’s big ticket items comes along then you will be in a position to pay for them rather than borrow.

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

The opinions expressed in this article are from the writer’s own opinion and may not be applicable to your circumstances therefore discretion is advised. Read my other articles on www.robertastewart.com