At Super-Advice we are about all things financial, but more importantly, helping people understand so they can get ahead financially.
Take Control of Your Finances
Well, it’s important to take control of your finances if you want to have no money concerns. And the number one place to start, and it’s something that we always teach, is, of course, budgeting. Because if you don’t have an understanding of how money moves around in your household, how can you ever get control of it?
As an example, anyone who’s ever run a business has to have absolute clarity on money in—the income that the business makes—and money out—the expenses that the business needs to pay to be able to run successfully. A personal situation is absolutely no different. You must have a clear understanding of what comes in and what goes out so that you can have a surplus.
And that’s the goal of a budget. Not to tell you off for spending too much money, but to make sure you spend an amount that ensures you have some left over. Because that little pile of cash is the gold that we want. That’s what we’re going to start investing in, building your wealth.
Planning for Retirement
We see this all the time—people that haven’t put any thought or consideration into their retirement. They haven’t saved any money, haven’t done all the bits and pieces you need to efficiently save money. They are worrying. They may not own a house. They may be concerned about how they’re going to continue to keep the money coming in and pay their rent.
I think the big problem about not thinking about your retirement is you will end up in a place that’s scary. That’s no good. In our modern world, everything costs money. In fact, money is the one thing that you need to have a safe, comfortable, and enjoyable life.
So learning about money as soon as you realize that it’s valuable to learn about money—basically as soon as possible—is super valuable. It’s something that I did. It changed the way that I managed my money. It changed the way that I saved my money. It changed the way that I grew my wealth. Absolutely important to put a lot of consideration into thinking about how you can learn more about money to accumulate, grow wealth, and have a wonderful, worry-free retirement.
The Power of Investing
Investing, put simply, is money growing on its own without you having to supply any work or labour. As an example, I think most people have a rough understanding, to poor understanding, as opposed to a good understanding of compound interest.
Einstein called compound interest the eighth wonder of the world. If you take $100 and you invest it in a fund or a KiwiSaver that returns 10% per annum, after 12 months, after that one year, your $100 will magically turn into $110. The next year, the next 12 months, if it’s still earning 10% in that KiwiSaver or perhaps some sort of ETF or direct shares through something like Sharesies, that $110 plus 10% turns into $121.
It’s like a snowball. If you take a little snowball and roll it down a massive hill full of snow, every time that ball rotates once, it picks up more snow and makes a bigger snowball. And it repeats, and it repeats, and it repeats until you get this massive snowball. That’s what compound interest is. Think about it that way. You might as well have it working for you and make all that cash.
Overcoming Fear and Just Getting Started
Starting anything new is always scary. I mean, you’ve got the concerns that you’ll get it wrong, that you’ll look like a fool, and all these sorts of problems. But I say to anyone: just start. If you’re too scared to start, open up your phone and have a look at YouTube, have a look at Instagram, have a look at social media. There are thousands of people like me teaching people on how to do this.
Ask a professional. Stay away from—if I could give anyone a tip—stay away from your broke uncle that’s got super tips on how to do everything. You can see that that’s perhaps not the right place to go. But maybe talk to someone that you know that works in the industry. Maybe reach out to any sort of financial advisers and get someone walking along with you.
he only reason that you’re afraid to do it is because you don’t fully understand what you are doing. So get someone that you trust, get them to help you, and they’ll start you off. But the number one thing for investing, for changing your financial life, for making a budget, for creating a surplus, and accumulating wealth is just to start!!.
That’s a wrap
If you need any financial help or advice please get in touch with us at Super-Advice.
