Choose to Save

Read More

Choose to SaveChoose to Save

Getting the right balance between enjoying life now and saving is easy once you understand that saving still allows you to enjoy life, but later. Saving is just deferred spending, and it needs to be broken into time-based spending categories which reflect your goals, that is, the things in life that are really important to you. For most people, there are four categories of saving: saving for unexpected essential expenses or loss of income (your emergency fund), saving for the things you want to do in the next five years or so to enjoy life (such as travel or home renovations), saving which is applied to getting rid of debt, and saving for longer term goals such as retirement. How you allocate your money between each of these categories depends on your goals and personal preferences. There is no right and wrong answer, no magic formula, no-one looking over your shoulder who has the authority to criticize or applaud the choices you make, and no-one other than you who can decide the best approach. There are just two important conditions to be met. Firstly, saving is something that needs to be done as a deliberate, considered act, and secondly, you need to understand the consequences of the spending and saving choices you make. Your first priority for saving should be for your emergency fund, which is your buffer for when things go wrong.

Taking a passive approach to saving simply does not work. The idea that somehow money will be left over when all the spending is done is pure fantasy. A determined choice to save needs to be made, with the understanding that the less you save, the less enjoyable your life may be in the future, unless you can find more ways to enjoy life without spending money

Related Articles

Liz Koh

Budget Winners and Losers

The latest Government budget had something for everyone but while most households will be a few dollars a week better off, there are some clear winners and losers. In the winners’ corner are businesses, those on high incomes, and savers. The biggest losers are property investors who have built large portfolios financed partly by tax rebates.

Read More »

Top Up or Miss Out

The end of June is an important date for KiwiSaver members. The financial year for KiwiSaver runs from 1 July 2009 to 30 June 2010 and if you have contributed at least $1,040 to KiwiSaver during that time, you will be eligible for the full amount of Government tax credit to be paid into your KiwiSaver account in July.

Read More »

Responsible Investing

There is a worldwide trend for investors to want to make a positive contribution to the world by investing in companies that are socially and environmentally responsible. If you are passionate about the effects of climate change, the scarcity of food and water, and social or environmental policies in general, then you will no doubt wish to ensure that the companies in which you invest are going about their business in a manner that is consistent with your views.

Read More »

Helping You Live your retirement To the Max

Keep in touch

Fill in your details and we’ll get back to you in no time.