Asset 2

Eleven things it’s worth spending money on

We usually focus on all the ways to save money, but the reality is, sometimes it’s worth splashing out. Here are eleven things that it’s worth spending your money on.

Your health

Skimping on things like doctor’s appointments and eye checks can be a false economy. Stay on top of your appointments so that you can tackle problems before they turn into serious or expensive issues.

Your retirement savings

You may regret any budgeting that removes your ability to save for retirement. You should at least contribute as much to your retirement savings account as your employer – and, if you’re in KiwiSaver, the Government – will match.

The money you put into retirement savings now will have years to compound and could grow to a much bigger nest egg when you get to the point where you need it.

Your car

You don’t need to buy a flash car, but if you opt for a cheap vehicle, make sure you factor in how much it’ll cost you to run. A cheap car might be easier on your savings account when you buy, it but can end up much more expensive over the long run. Also, if your car is starting to suck up a lot of money in maintenance costs, it might be time to look at upgrading.

Travel

Sometimes it’s worth spending a bit more to make travel run more smoothly. When you’re booking your flights, an eight-hour stopover in a random airport to save $200 might not seem so bad. In the moment, though, it’s a different story.

Shoes and clothes

“Fast fashion” is all the rage right now, with mass-produced inexpensive clothing piling up on retailer shelves. But sometimes, spending a bit more can be a better idea. If you spend twice as much for shoes that last three years than you would for a pair that last six months, you’ll come out better off. The same applies to things such as a great coat or suit.

Your mortgage

The more money you can put towards your mortgage now, the more money you can save over time. Increase your repayments to the highest level that fits in your budget – “future you” will thank you for it.

Dental care

It can be expensive but putting it off dental care can end up being even pricier. Get an annual dental check-up so you can get things sorted before they can become big ordeals.

Education

Upskilling, whether that’s with a degree for a first career, adding to skills you already have or picking up new ones for a change of direction, can really pay off by boosting your ability to earn money.

Make sure you choose education from reputable institutions that will land you a step closer to where you need to be – not just expensive courses for the sake of it.

Services that save time

It can seem like a luxury to pay someone to do your cleaning, gardening or home maintenance. But if it frees you up to do other income-earning work, you might end up better off.

If your hourly rate is greater than that charged by the people offering the service, you could benefit from outsourcing your tasks to others. Even if it’s not, you may decide that the boost to your lifestyle is worth the investment.

Work tools

Don’t scrimp on the tools you need to earn a living. If you rely on a laptop or camera, for example, ensure that you have reliable models that will deliver the results you need every time.

And of course, insurance

Money spent on the right level of the right insurance is money well spent. It can help you pay for expensive treatments and even take care of your loved ones when you’re not there to do it yourself.

If you’d like to make the most of your insurance spending and ensure you’re maximising value for money, please get in touch. We’ll be happy to walk you through your options.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current development or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.

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Please book in your free 15-minute phone call to see if we can help you with your financial life.

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How to boost your financial life in one week, one month and one year

We often overestimate what we can achieve in a short period of time, but dramatically underestimate what we can do in a longer one. And if you need to make changes to your money life, it might not be as drawn-out a process as you expect.

Here’s what you could realistically expect to change about your personal finances, in the next little while.

This week

Cut impulse spending

Make a conscious effort not to buy more than what you set out for when you go to the shops. This can be done by taking a mindful approach to your money – only spend what you need to and pay attention to each purchase. Plus, make sure you do your research rather than just take the quickest options.

Identify bad habits

Trackback through your bank statements to help you identify your weak points. Are you spending too much on lunches? Drinks after work? Are you paying for subscriptions you don’t use?

Check your KiwiSaver

Log on to your KiwiSaver provider’s website and check your settings. Are you in a fund that’s appropriate for your circumstances? Are you contributing enough to get to your goals? At a more basic level, what’s your current balance?

Talk to your partner about your financial values

If you haven’t recently, sit down with your partner and have a chat about money. Talk about any goals that you have and ask what’s important to them. See if you can work out between you whether you have any deep-seated fears or feelings about money that might get in the way of your success. Once you’ve identified those, it can be easier to tackle them.

This month

Start a savings regime

How much can you afford to save each payday? Start a process of “paying yourself first” to put the money into your savings account as soon as you receive it. Making saving just another bill to pay will mean you’re much more likely to hit your goals.

Set up direct debits

Automate your finances – set up direct debits for all your bills so you never miss a due date, and make your savings automatic. It can be a convenient way to streamline your budget.

Review your mortgage

Do you know what the interest rate you’re paying on your mortgage is? How long you have left on your fixed-rate term? Work out whether you could save money by either keeping your payments the same when your term rolls off, or, if you can secure a lower rate, increasing your repayment, or both.

This year

Build an emergency fund

If you can put aside an amount equal to three months’ income, you’ll have a buffer that will be invaluable if you hit trouble – like a car needing repairs or being out of work for a while. Having an emergency fund in place can also help you reduce the cost of insurance, as you should you be able to select a higher excess.

Boost your income

A year is enough time to increase what you earn, either by making a case for a pay rise at work, setting up a secondary income stream, or even boosting the profitability of your own business. And of course, if you’re asking for a pay rise, make the case clearly with evidence showing why you’re deserving of more.

Clear your credit card debt

If you’re carrying credit card debt, paying it off is a priority. You may find you’re able to transfer it to a zero-interest offer with another bank which will enable you to pay it down more quickly.

Need a hand?

If you’d like to talk about your financial goals, please get in touch today. We’d love to help you get on the right track.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current development or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.

Schedule your free
15-minute phone call

Please book in your free 15-minute phone call to see if we can help you with your financial life.

Choose your time