How to face your financial fears this All-Hallows’ Eve

by | Oct 28, 2022 | Managing Your Finances

Have interest rates got you spooked? Are you scared by your lack of savings? Is debt making you faint of heart? Or are you rattled by retirement?

Whatever ails you, we have the antidote, so that you can face your financial fears and transform them into a flourishing financial future.

Interest rates got you in a tizzy?

There’s no denying that interest rates this year are definitely more of a trick than a treat.

But, before you resign yourself to a toilet-papered house, here’s a couple of things to keep in mind:

  1. Consider when you’ll have to refix – Are you just reacting to the headlines (classic scare jump tactic) or do you actually need to seriously consider how you’ll manage the increase in mortgage payment when you refix in the next couple of months?
  2. If you’re tossing up between 1 & 2 year fixed rates, word on the street is that these high mortgage rates aren’t set to last long, so fixing at the lower 1-year rate, isn’t necessarily a bad pick of the Halloween candy
  3. Are there other ways you can reduce your repayments? Could you restructure, refinance, or pull some other lever that will give you a bit of breathing room?

For some more intel on where the experts are expecting the mortgage market to go, check out Hannah’s conversation with Squirrel Mortgages JB about making sense of the mortgage market here.      

Scared by your lack of savings?

In times of financial headwinds, having something up our sleeves to protect us from the approaching mummies can help us feel a lot safer. But, many Kiwis don’t have that buffer.

So, this is the time you need to start looking at your finances with a fine-toothed comb and start channeling any fritter or lazy tax towards building that buffer.

Ask yourself, am I spending on things that aren’t making me happier, and if I didn’t buy probably wouldn’t even notice? That’s your fritter. And in terms of lazy tax, this is the extra you’re paying for your internet, power, phone, gym etc that you could potentially get cheaper elsewhere. Shop around and see if you can get a better deal somewhere else. Many companies also offer sign-up bonuses which in some instances can equate to a month or more of free power, internet, or your favourite screaming – ahem, streaming – service.

Distressed by Debt?

Debt is the skeleton that’s grabbed you by the ankle and is now slowly, inch by agonising inch, dragging you into the grave. Why did you choose that shortcut through the cemetery again? While it may be impossible to cut it off at the wrist, there are ways that you can start to loosen its grip.

Where you can, create your own Frankenstein’s monster and consolidate those debts. Put as much of it into one loan or take advantage of a credit transfer. Then, put your focus on paying down those debts. If there’s still more than the one you can either tackle the high-interest debt first and get through the worst of it. Or, you can pay off the smallest debt first and revel in your genius by screaming ‘It’s alive, Alive!’

Rattled by retirement

A recent study by Te Ara Ahunga Ora Retirement Commission revealed that many Kiwis are Zombie walking towards retirement (okay, they actually said sleepwalking, but trying to stay on theme here!)

The problem is that many people approaching retirement don’t seem to have any idea as to how they’ll draw down the money they’ve been saving or accumulated through investment once they’re no longer earning. Which is scary when you think that they could run out of money before they run out of life, or worse, live out their days frugally while they had plenty with which to enjoy a much more lavish retirement.

We dug into this a little deeper over here:

Luckily, there’s a way you can outrun those zombies by understanding how much money you’ll need when you retire, what you’re on track to have, and – if there’s a gap – finding a way to bridge it. Once you’re comfortable you know you’ll have enough, you’ll be more comfortable spending that money as you’re hoping to.

And remember, you don’t have to face these Halloween ghouls by yourself. Just like Columbus found a team to help him fight the zombies and save Babylon*, you too can team up with the experts to help you secure your financial future.

If you’re keen to chat to a financial adviser about your financial fears, book a consultation with an enable.me coach today.

*In Zombieland 2

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