Hopefully everyone had a very merry Christmas and the new year is well underway, relaxing on a beach somewhere enjoying some sunshine.
It is well known that this time of year is the time for resolving to make some changes to yourself and often these are in the health and financial areas, which are proven to be interrelated. Here are some key tips that you might want to consider if this is the year you want to get on top of your finances, especially as we negotiate a cost of living crisis.
TRACK YOUR SPENDING
The best way to control you spending is to understand where it all goes. I would suggest getting three months’ worth of bank statements to track spending, then categorizing expenditure into food, clothes, rent, entertainment etc. to get an understanding of how much you spend in an average month. Once understood, you can elect areas to focus on savings.
REVIEW YOUR COSTS
The new year is a good time to review all your providers such as phone, electricity, car/house insurance, health and life insurances to make sure you’re getting the best bang for buck. Are there any new deals you can take advantage of?
INVESTMENTS KIWISAVER AND SAVINGS
One of the most important consideration with investments and savings is that the strategy you coincides with your investment timeframe. A short investment timeframe (less than 3 years before needing a large amount of it) implies very conservative approach, longer than 5 year timeframes you have the ability to ride out short term volatility such as last year and generate growth over time.
If you are invested with us, you will be in a well diversified, professionally managed account that will see you through the volatility. Fell free to contact should you wish to further understand the strategy in place, or alternatively wait until you receive your annual review request.
We are here to help. We are independent, licensed and qualified financial advisors advice, our job is to make sure your financial decisions are all coordinated to your long-term financial objectives. By having everything working together you will achieve powerful long term results.