04 May What are we doing with our Money?
Most of us work hard for the money that we earn, so this post is dedicated to making good use of that money.
How much does it cost?
We often make purchases without really thinking about what something costs, or whether a purchase is the best use of our money. In fact, research suggests that up to 45% of our decisions are made out of habit! This means we often don’t think through what we are buying (or perhaps, what we should be using the money for instead…).
Think about a daily cup of coffee (or any other repeat purchase). Lets say that a coffee costs you $4 and you purchase one 5 days a week. That’s over $1,000 a year on coffee! Disclaimer here: I am not saying you should or shouldn’t buy a coffee each day. What I AM saying is that the majority of us don’t even think about it. Grant from Millennial Money takes this and shows the cost from a different perspective. Yes, he uses US dollars, but the concept of what something really costs is applicable anywhere; it’s well worth a read: http://millennialmoney.com/true-cost-anything/
What’s your plan?
The NZ Herald recently reported on a survey completed by the BNZ. This survey found that only 34% of people knew how much they needed to save for retirement. It is no secret that there is an increasing number of people hitting the golden age of 65 (once considered the retirement age), but the amount of $$ in the government’s budget isn’t keeping pace. Even though the government keeps ‘kicking the can down the road’ sooner or later, something will have to give. This means, at least for younger generations, you will probably have to take care of yourself!
Not sure of what you need? A great place to start is https://sorted.org.nz/tools/retirement-planner
Also, if you fancy a read, the Herald article is available HERE.
If you feel that you aren’t on top of your money, contact us for a confidential discussion.
