Let’s face it, managing our finances is tough. Nothing is for free, nothing comes easy, (money being one of them) and we’re expected to still get by each and every month, living the dream, getting married and having kids.
I haven’t even got started yet on the unexpected things that we need money for, like holiday emergencies, medical bills. Oh, and yes, we do still expect you to buy property, have a savings plan for retirement and perhaps a little investment on the side as well.
Is that all? The answer is no, there’s still more. So, then how on earth do we all manage our finances, when we’re almost in debt before we even start eating? It’s not easy, and as a result, we’d like to share with you a few tips that might just lessen the burden, even if slightly for all the Kiwi’s that could use a little advice.
Consider the following few tips when it comes to money
We all have bills to pay each month and you’re no exception. That said, plan for it. At the end of each month, your bills are due. This date doesn’t change, your salary isn’t changing, so make sure that you have the correct amount of funds in your account to pay your bills on time. Better yet, try and pay them earlier if it means getting a discount on the instalment. When it comes to your power and telephone bill, don’t default on these ever. Reconnection charges are only costing you more at the end of the day. We’re trying to save money, not lay out more than we can afford.
Buying on tick is wildly tempting. Especially since you have a function coming up in a week, haven’t been paid as yet and need that floor-length dress that you saw in the window of Forever New. Avoid it. No matter the size of the purchase, it’s never a good idea to buy something that you cannot afford. You’re actually paying more than the person who bought it cash and could afford it pays. How does that make any sense? Interest is the devil’s playground, and you’re not in a position to go around that merry go round.
When borrowing, opt for the cheapest deal. Money lenders will sell you something that looks after their needs mostly and not yours. You are the only one looking out for yours, therefore seeking the best option is critical. There are many cities that offer free financial advice when you need it. Use it and spare yourself any poor decisions when it comes to borrowing money.
A good idea for those of you with more than one means of credit, i.e. hire purchase or credit cards and the likes thereof, it’s always best to try and consolidate these. Paying off one monthly bill makes a lot more sense when you consider that every credit option comes with a different interest rate and they’re all adding up to amounts that you cannot afford. Consolidating into one affordable one can actually save you money.
There are ways to be charitable and to help those in need but be very wary when it comes to offering to be someone’s guarantor. This puts you at risk of losing everything as a result of someone else’s shortcomings.
Hire purchase is a heaven sent, yes. But we do need to understand all the risks involved when signing for an item on hire purchase. Hire purchase means putting down a deposit and repaying monthly instalments until the total is settled. The difference is it comes at a much higher price than the sticker price of the item since it includes the capital, all the interest, and service fees each month as well. If you can, always put down as large a deposit as you can in the beginning. Then during the hire purchase loan, do your best to pay more than the required amount as often as you can. What this does is settle it sooner, and also means less paid in total in the end, because as you pay extra, you minimise the interest you repay.
Lastly, don’t ever bounce cheques. Not only is this harmful to your credit rating, but it also ends up costing you heaps of bank fees.