Experienced financial advisor Stephen Robertson’s regular My Money column offers practical advice and solutions to help people manage their finances.
- By Stephen Robertson, Financial Adviser
Managing finances is a crucial skill for navigating life’s challenges and achieving long-term goals. Here are some key strategies to help you take control of your finances:
- Budgeting: Create a monthly budget outlining your income and expenses. Categorize expenses into essentials (like rent, groceries, and utilities) and non-essentials (such as dining out and entertainment). Allocate a portion of your income towards savings and investments. Regularly review and adjust your budget to ensure you’re living within your means.
- Saving: Prioritise building an emergency fund to cover unexpected expenses. Aim to save at least three to six months’ worth of living expenses. Set up automatic transfers to your savings account to make saving a habit.
- Managing Debt: Tackle high-interest debt first, such as credit card balances. Consider consolidating debt or negotiating lower interest rates to save on interest payments. Avoid taking on new debt unless necessary, and borrow only what you can afford to repay.
- Investing: Begin investing early to take advantage of compound interest and grow your wealth over time. Diversify your investment portfolio across different asset classes to spread risk.
- Contribute to retirement accounts such as Kiwisaver. Take advantage of employer matching contributions and tax benefits. Review your retirement plan regularly.
- Stay informed about personal finance topics through books, online resources, and financial seminars. Keep up-to-date with changes in tax laws, investment strategies, and economic trends. Networking with other financially savvy individuals can also provide valuable insights and support.
Effective financial management is essential for achieving financial freedom and security.
You can take control of your financial destiny and build a solid foundation for a brighter tomorrow.
Contact us to develop a strategy tailored to your financial goals and risk tolerance.
Stephen Robertson
Financial Adviser
P: 09 377 4433 | M: 0275 408 900
E: stephen@mymoney.net.nz
W: www.mymoney.net.nz
