Welcome to the November 2017 newsletter from LIFE-TIME Financial Group.
In this month’s issue:
- Why simple makes sense
- Health Check
- Market Update
- Hot interest rate – 12 months at 3.80 pa %
Simple makes sense
It’s ironic that complex solutions to any problem can just provide you with excuses not to act. Simple solutions, by contrast, put the weight on you to do something.
“Spend less, save more” may sound simple, for instance. But the application can be tough. And that’s also where the benefits lie, as Carl Richards* explains.
“Can it really be that simple?”
Over his career Carl Richards has heard these words from many people. Clients, friends and family all just assumed that the process of financial planning needs to be complex and many people believe that complexity equals quality.
But there’s a problem with this argument; it’s wrong.
Those seeking financial advice overlook simple prescriptions because when they hear simple, they make the leap to easy. But sticking with good money decisions isn’t easy. So how do we bridge the gap?
Stop confusing simple with easy.
“What’s one thing I can do that will have a big financial impact?” Carl Richard’s answer is almost universal……“spend less and save more”. Surely that’s too simple, it couldn’t possibly work.
But if it’s so simple, why doesn’t everyone do it? Think about the simple financial advice we’ve heard over the years.
Create and stick to a budget. Avoid unnecessary debt. Save money in an emergency fund.
All these things are simple, but that doesn’t mean they’re easy. So to avoid the hard choices, we believe that simple won’t get the job done and go looking for complexity, often in our investments (and often in other areas of our life too), in order to make up for high spending and low savings.
If we all had unlimited resources, life would be easy. But almost every financial decisions comes with trade-offs. We need to ask ourselves some difficult questions. Simple solutions put the weight on us to act. Only we know the “why” behind our money decisions. To spend less and save more, we have to dig deeper.
As simple as it sounds, creating and maintaining a budget can get you on the quickest path to reaching your financial goals.
For example, do you know where your money is going every month? If not, then that’s a huge warning sign that it’s time to start paying attention. Regardless of how much money you make, budgeting is the first step to taking control of your financial life. Yes, it’s that simple!
If you need help with your monthly expenses and budgeting, setting goals or simply wish to set up an emergency fund, please contact us…..we’re here to help and to make it simple.
*Carl Richards is a certified financial planner, author and writes for a weekly column in the New York Times; he is also a frequent Keynote Speaker at financial planning conferences.
Healthy Heart Tips
- Move your body: Exercise is key to a healthy heart. Aiming for 30 minutes of exercise each day can reduce your risk of heart disease.
- Drink water: Water contributes to heart health and blood pressure by carrying waste from the cells and the body. This increases the blood volume so it isn’t so concentrated.
- Feel joy in small moments: Stress contributes to increased blood pressure and inflammation. Taking moments throughout your day to cultivate gratitude for the small things that feel good can help reduce the effect that stress has.
- Eat heart healthy foods: Salmon, oats, berries, cocoa, kiwifruit, tomatoes, almonds, olive oil, dark leafy greens, pumpkin and legumes!
- Avoid trans fats: Trans fats are found in many processed foods and should be less than 1% of the diet. These foods can also contain high amounts of sodium which can increase blood pressure. Healthier fats in the diet come from avocado, olive oil and salmon.
- Take care of your liver: The liver helps to balance our ‘good’ and ‘bad’ cholesterol. Eating good sources of fibre as well as reducing alcohol, sugar, and environmental pollutants will help your liver be in tip top condition.
*Source: Healthpost Nov.2017
Market Update – October
- Share markets continued their 2017 ascension during October, with a moderate 3% gain boosted further by the New Zealand dollar falling 5%. Since the election, the fall in our local currency reinforces the diversification benefits of holding foreign investments, which rise in value when the currency falls.
- REINZ’s October figures show price rises in every region apart from Auckland and Nelson. Uncertainty around the new government has done little at this stage to dampen property prices throughout New Zealand, as 14 of the country’s 16 regions see house prices rise in the month of October. Otago has rocketed up 14% to a median of $412,000, with Manawatu/Wanganui seeing growth of 11.5% ($290,000) and Waikato reaching a median of $500,000, a rise of 9.9%. Auckland bucked the trend, with a fall of 3.2% to a median of $850,000, which represents the biggest fall in value since December 2010.
- Across the Tasman, Australians have been patiently waiting and now the time has come: Amazon expects to launch down under within two weeks. The world’s biggest online retailer is contacting sellers advising them to get their products online and ready to sell by “mid-November”. The Australia roll out is part of Amazon’s broader global expansion, as it works to keep up its rapid growth and fend off competitors like Alibaba and Walmart. Amazon recently released its quarter three results which beat expectations. As a result, the stock rallied 13% in a day, which is huge when you consider its market cap – adding US$60 billion+ in valuation… just like that!