If you run a business, you’re always reviewing budgets and trimming expenses, because you don’t want rising costs eating into your profits. Otherwise, what is the point of working so hard all year?!
Unfortunately, few people pay such close attention to the household budget!
Generally, once there’s ‘enough’ – to pay the mortgage, buy groceries and have a nice life, we adopt a ‘she’ll be right’ approach to our money.
That doesn’t usually result in dire financial straits – instead, it makes you comfortably inefficient. You might be aware you should be doing better for how hard you’re working, but the consequences of doing what you’ve always done aren’t particularly dire – so you do nothing.
And nothing begets nothing – so you don’t make the progress you deserve.
But 2019 is the time to change all that! Ask yourself these questions:
– Do you know where all your money goes? Kiwis fritter at least 15% of their income without it making them any happier.
– Are you able to save 20% of your income each year? That’s what our financial advisors aim for with our clients’ tailored financial strategies
– Are you paying too much to the bank? Our banks are among the most profitable in the developed world – so chances are the answer is yes!
– Is your mortgage on track? For example, if your debt is four times your household income, you should aim to pay it off in 8 years. If it’s five times your household income aim for 10-12 years. This is what our financial personal trainers aim for with their clients, this is not New Zealand’s average by any stretch – but who wants to be average?