Why is it so Easy to Spend Money?

easy to spend money

While this sounds a really simple question, the answer isn’t as straight forward as we would probably like it to be.

This simple question actually has two parts to it.

The first is why do we spend money and the second is what makes it so easy.  So, let’s look at these two components in isolation and put them back together.

The first question: Why do we spend money?

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3 Things to Improve Your Money Happiness

money happiness

Candidsnapphotography.com

“l’ll be happy when I get the pay rise” or “I’ll be happy when I get a ………”  Just insert whatever the word is for you.

Why do so many of us wait to be happy?  What is wrong with being happy right now?  And, why do we look to money to make us happy? Continue reading

Three Critical Rules of Money Management

coins_2Happy New Year!  We hope that you have had a fantastic time over the Christmas/New Year period and enjoyed a least a few days off.

It’s (late) January, a time for reflection about last year and looking ahead at self-improvement for this year.  Once you have worked through the diet and exercise goals (they always seem to be fairly near the top of my list), there’s the money planning for the year.

Here are the Three Critical Rules of Money Management that you need to incorporate into your planning.

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Spring Clean your Finances

I woke up this morning with the urge to clean!  No, I don’t mean the usual push the vacuum cleaner round; do a bit of dusting clean.  I mean the empty the cupboards out, see what is lurking in the back of the pantry and have a good old decluttering session.

20140928_102029Maybe it has something to do with spring; the trees are just starting to blossom and the garden is coming back to life after winter.  So the urge is there to get ready for summer.  Or maybe I am just sick and tired of opening a cupboard and all this ‘stuff’ that I don’t use or need stares back at me and it is time to do something about it.

That got me thinking, we should also spring clean our finances on a regular basis as well.  Have a look at all the automatic payments and direct debits that come out of your bank account.

Do you know what they are for?

Do you still want the service you are paying for?

It is also a good opportunity to review other expenses like your insurances, phone and power provider to see if there are any deals you could capitalise on.

What about your credit card?  If you have a balance just sitting there that won’t go away, are there any options by changing credit card company that could help reduce the cost.

Don’t forget to look at your savings, when was the last time you increased your contribution to your savings plan?  If you got rid of a couple of unused subscriptions, you could divert the money to savings instead.

Oh well, it’s back to the kitchen cupboards for me…..

If you would like some help decluttering your finances, feel free to drop us an email or give us a call

 

5 tips to help you cope with Money and Depression

Robin_WilliamsIt was with surprise and sadness that we learned of the death of Robin Williams.  How could someone who gave so much to everyone else not realise that he was loved in return?  The answer of course was that insidious illness, Depression.

Then I saw this headline in the NZ Herald “Williams was depressed and broke”.  It was only a few months earlier that Charlotte Dawson also suffering from depression and ‘jobless and penniless’ ended her life as well.  It seems that depression and money problems are a dangerous combination.

I don’t know the details of either’s financial circumstances other than what has been in the media.  But both had been in the situation of earning very good incomes during their careers, they enjoyed the good things in life and were able to be generous to their friends and family.  Then for whatever reason the money stopped flowing and life became even more difficult when combined with depression. Continue reading

What does wealth mean to you?

Typically in our society wealth is equated with how much money we have.  Wealth can mean different things to different people and what it means to you comes down to your core values.

key to wealthAs a money mentor I love to listen and learn from as many different experts and  differing perspectives about money as I can.  So it was with eager anticipation that I attended Dr John Demartini’s recent talk on wealth in Auckland.

I wasn’t disappointed, it was fascinating. I could really relate to what he was saying.  It isn’t just about changing your money behaviours, you need to go much deeper than that and explore your beliefs and core values.

When you ask a room full of people how many of them want to be financially free most of the room put their hand up.  When you ask the same room to put their hand up if they are financially free, very few do.  Why is this? Continue reading

The Have’s and Have Nots – The gap is growing.

Wow, what an eye opener. I have just watched Nigel Latta:  The new Have’s and Have Nots.  What a powerful documentary about the changes in the New Zealand economy, the impact on families and the widening gap between the have’s and have nots.

shutterstock_78856468I highly recommend that you watch the documentary, but if you can’t spare 44 minutes, then these are the key points that I picked up from it.

We have a new ‘class’ in New Zealand, The Working Poor.  These are the families where both parents work full time, and still don’t have enough money to meet the day to day needs of their families.

If something goes wrong and they need to borrow money; say for car repairs or a family funeral that is out of town, they have no option but to borrow money.  The banks won’t lend it to them, so they end up in the hands of the loan shops, who will happily lend them money at 10% interest.  That didn’t sound too bad until it was clarified; that was 10% per week!!  When you are desperate you tend to think in terms of  immediate needs, and don’t calculate the longer term costs so the situation just keeps getting worse.

The statistics are scary.  One in five families don’t have enough to live on.  One in three families couldn’t survive more than two weeks if the main breadwinner lost their jobs. A staggering 55% would run out of money in four weeks. Continue reading