When I went to school it was only if you chose to do accounting and economics that you learned about supply and demand, how to do budgets and other economic factors. At home, money is often a topic that is not discussed and there can be a lot of embarrassment and shame around the subject if there is a lot of debt. No wonder so many people feel like they don’t understand how money really works!
Money and finance are simple or complex.
Simple – You have more money coming in than you have going out.
Complex – You find yourself in a situation where you have more going out than coming in.
For the simple situations you have choice on what you use your funds for and reaching for goals such as owning your own home is easier to map out. When you’re in this situation there are things that we can talk about that can boost your progress for getting into a home or repaying your mortgage faster if you wish. Mortgage rates are low at the moment, but that is not the only factor to consider. Financial planning can give you a path forward, whether it’s toward buying an investment property, applying for a business loan, or bulking up your savings account.
If you find yourself in a complex situation there are things that you can do!! The first step is to acknowledge that something needs to change, and the sooner the better. Spending plans, credit card balance transfers, debt consolidation and refinancing your loans are all tools that can help you get back on track and to get you what you want. Maybe you want to get into your first home, but it feels unachievable. Or perhaps you want to know more about personal loans, how to manage a budget so you can start your savings account, or maybe you need some quick cash for a car repair.
Sorted.org.nz has some useful calculators in their Tools section, having a play with these will help you to understand your situation and various options for getting back on track. You may also find that there are financial literacy courses run in your area, these can be such a useful source of information and support. Building on Basics is running some in Invercargill this week – they’re a good way to get some education on the “basics” such as how KiwiSaver works, and how to understand credit. Keep an eye out for workshops and courses in your area, there are various organisations working to educate people around money.
It can be a scary thing when you review your spending and see where your money is going, but this review can provide you with great information to help you make good decisions, so you can get what you want.
Sometimes all it takes is a little effort to make some appointments at the bank and to provide some paperwork and your financial stress can be reduced. Your first appointment should be with a Financial Adviser – we can help you to understand your best approach, and will help you with the appointments with banks etc. This doesn’t need to be scary!