When I receive questions from time to time asking about student loans and whether I think it’s worth taking one on to invest the loan amount and make money out of taking on debt, you better believe, I’m interested in finding out more!
All in Term Deposits
When I receive questions from time to time asking about student loans and whether I think it’s worth taking one on to invest the loan amount and make money out of taking on debt, you better believe, I’m interested in finding out more!
The very first thing I would do is set up an automatic transfer to syphon off a set amount of money each week into a sub account with your bank and give it a flash name like “IKMSMOI” (investments keep my sticky mitts off it).
I spend a lot of time at my computer and my “household spreadsheet” is often open and it was while I was looking at this that I thought perhaps it was timely that I have a bit of a financial spring clean.
If you were given the choice of receiving $1,000,000 after 30 days OR 1 cent doubled in value every day for 30 days. Which would you choose?
One questions I ask is “if you were given $10,000 right now what would you do”? I picked that amount because in my mind it is enough to be significant, $1,000 just doesn’t make people sit up and listen, but the thought of a sudden and unexpected $10,000 does.
All your working life you are trying to increase your net worth so that when you finally stop working you start to slowly spend it to live on. If upon retirement each year you take 4% out of your pot of savings it will take about 30 years to boil the pot dry. So what can you live on a year? Do you need to invest $100K, $200 or $500K?
Is it just me or are people confusing saving for a house with saving for retirement? I keep hearing about first home buyers all the time and how difficult it is to get into the market. But the question I keep asking myself is “why do people use their KiwiSaver as their primary mode of saving for a deposit?”
It is important to track your net worth. How else can you know where you are financially so that you can plan for the future? The most important thing is to understand your financial position today so you can be moving in the right direction.
A conversation on repeat at the moment in our whare is this: What if we sell the almost four year old house we are sitting in...