Expert advice: a silver goal to set in 2022


There is no shortage of advice on everything from how to improve your credit score to how to start saving more money.

But if you want to change your financial life in 2022, what are the things that will really make a difference?

We asked a series of experts to give us the most important advice they could think of.

Glen McLeod, Edge Mortgages

Glen McLeod urges people to have a financial plan for the coming year and understand their spending habits.

People should include some money aside whenever they were paid to meet their goals or expenses, he said, such as planning for next Christmas, any trip they wanted to take or the deposit. from the house they worked for.

“Pay off short-term debt, save for purchases rather than after payment, rent the purchase or credit cards (unless you’re buying for points and clearing the balance), review all debt existing, review all insurance, review utility providers, and review your bank statements. Knowledge is power and when you understand your spending it will help you achieve your goals.

David Boyle: Make your savings work harder for you.

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David Boyle: Make your savings work harder for you.

David Boyle, Mint Asset Management

David Boyle says some people have more money at their disposal than they normally would, due to being stuck at home during blockages and because travel is not possible.

“The only thing Covid has done for many Kiwis who have kept their jobs and income over the past two years is they have more savings than ever before. So my suggestion to these Kiwis is to invest that surplus (or at least some of it) and make those savings work harder for them than just letting them sit in the banks.

Financial Advisor Liz Koh, Enrich Retirement

Liz Koh says paying down debt should be at the top of the list.

“Interest rates are going up and that will have a significant impact on people with large mortgages. Cash will become very important. Get rid of the most expensive debt first, which is usually credit cards and bank cards, and then look for ways to pay off the mortgage faster, ”she said.

“If I had the right to do a second thing, it would be to accumulate emergency money. We are at a turning point in the economic cycle, so it will pay off to be in as strong a financial position as possible early next year. “

Christopher Walsh: Get rid of your debt.

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Christopher Walsh: Get rid of your debt.

Christopher Walsh, Silver Center

Christopher Walsh is also in favor of debt repayment.

“The lockdowns have shown what we can (and cannot) live without. There is too much personal debt, credit cards being a money pit. All of these balances can be refunded. While most of us, at least in the short term, can’t change our pay, we can all control how we spend our money. Paying off debt is a privilege that very few people get, but there is help and support to enable everyone to do so. With money comes freedom and increased happiness. “

Sam Stubbs, Simplicity

Sam Stubbs suggests doing something for someone else.

“In the month that someone important in your life is born, create a KiwiSaver account in their name, put it in a low-cost growth fund and pay $ 50 per month. When they turn 18, there could be $ 18,000 in there. What a start to life.

He also urges people to avoid getting into debt where they can.

“Never borrow money or have a credit card unless you are buying a house. “

Tom Hartmann, sorted

Tom Hartmann would like to save you money with a clear goal.

“If there is one thing we recommend, it is to compose what we call your ‘significant savings’: devote your money to paying off your debts, building up funds for future goals like retirement or buying a property. Other savings are good, but significant savings really improve your overall well-being and get you ahead financially.

Katrina Shanks: A plan is important.

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Katrina Shanks: A plan is important.

Katrina Shanks, Managing Director of Financial Advice NZ

Katrina Shanks favors good planning.

“Take the time to think about your needs and goals and make a plan to achieve them. Start the journey today.

Financial Advisor Martin Hawes

Martin Hawes recommends that people have a very clear idea of ​​what they are looking for, whether it is one thing (a new car) or a lifestyle, or to change some bad habits that they are looking for. stress.

“The barrier to getting what you want is rarely knowing what to do – in most cases it’s pretty obvious. Instead, the barrier is usually having the motivation to do something you don’t want to do and then having the discipline to keep doing it. The trick is to do this new thing (i.e. adopting a new behavior) long enough for it to become a habit.

“For example, if you overspend on a credit card and that means you can’t save for a security deposit, the new behavior would be to put that card away. If you have a dream of home ownership that is powerful enough, you will have the motivation and discipline to stop using this card to buy things and save instead. It starts with dreaming about what you want: if that is clear enough, the rest becomes much easier.

Kristen Lunman: Don't just save your money, invest it.

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Kristen Lunman: Don’t just save your money, invest it.

Joe Taylor, BetterSaver

Joe Taylor says most New Zealanders don’t realize that in retirement, KiwiSaver could be their greatest asset.

“It’s worth making sure you’re in a fund that will help you get the most out of your investment. It could help you retire with half a million dollars more. While it helps to count the pennies and not go overboard on Christmas shopping, you can have a much bigger impact on your financial future by trading in the right KiwiSaver fund. It will make a huge difference to your future, without having to tighten your wallet too much during the vacation period.

Kristen Lunman, Hatch

Kristen Lunman says you have to start investing. “Working and saving will not lead to financial independence for most people; you have to make what you record work for you. The best time to start investing was yesterday, and the second best time is today.

Sharon Cullwick, New Zealand Federation of Real Estate Investors

Sharon Cullwich says her dad asked a question before buying anything. “Do I want it? Do i need it? Can I do without?

She says you will often find that you can do without it.

She recommends that people check their credit history and do everything possible to improve it.

“Pay off your old loans and if your credit history reveals things that you aren’t aware of, talk to the organization that filed the details and set a repayment schedule. For the next three months, keep track of everything you spend your money on. Include all incidentals, coffees, babysitting, school fees, restaurant meals, food, electricity, telephone, entertainment, parking, etc. This will allow you to understand where you are spending your money, ”she says.

“Open three bank accounts – one for saving, one for everyday life and one for ‘luxury’ spending. “

In the savings account, deposit 10 percent of your income as soon as you receive it. Don’t spend that money unless it’s on something that can generate more. Calculate how much you need each week to pay the bills and put it in your daily account.

“’Luxury’ expenses are money you can spend on anything you want. However, once it’s gone, it’s gone! Do not take money from your other accounts. If you have an expensive item, you want to buy, save, and pay cash. You might find that a debit card is useful with this account. I don’t really like budgets because I find them too restrictive, so I find this system of allowances suitable for me.

Dean Anderson, Kernel Wealth

Dean Anderson says it’s never too late to get into a good financial habit.

“Remember, the average age of a first-time home buyer is 35, so don’t feel pressured based on what you read or see around you, you have the time to aside and use it to build a regular saving or investing habit that will allow you to achieve those goals, whether it’s buying a first home or gaining long-term financial independence. .


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