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Need to stretch your dollar further over xmas
Xmas is an interesting time of year. Its a time where we spend time with family and friends and most of us get to have a holiday. Its also the time of year which is the most stressful financially for so many people. Good planning well ahead of time can greatly reduce our finanacial stress however that is often far easier said than done. Here are some tips that you might find useful to help make your money go futher:
- Have a look through websites and see what bargains are available. There are a number of special discount sites that are now available like www.grabone.co.nz or www.treatme.co.nz
- Start buying for Christmas as soon as you can so you make the best of the sales
- Check your credit card or other loyalty programmes to see what gifts you can trade your points for.
- Scope out your job perks – does you company have any deals that you can utilise for Christmas.
- Look for two-for-one deals – are there any that would be ideal for gifts, i.e. buy one magazine subscription and get another for free.
- The gift of photos – you do have any doting grandparents on your list? Make photo albums with pictures of your children. With the latest technology you get a really professional product for a reasonable price.
- Re-gift it – carefully of course – the item has to be in perfect shape, you have to remember who gave it to you (heaven forbid you return it back to the original giver) and it has to be a better fit for your recipient than it was for you.
- Check out garage sales – we don’t have as many as we used to before the internet but you may find some great bargains.
- Clean out your cupboards – how many of us have bought things that we have never used, maybe you will find something that will make a great gift.
- Bring out your culinary skills – with home baking becoming rare because many of us are too busy, people love to receive home made cookies, preserves, jams etc.
Stop thinking about money!
It’s the easiest way to make it.
Dwelling, worrying, planning, fretting, pacing, exhausting – these are some of the many words that come to mind when some people think about money too much. You plan, then you plan some more, then you think about hypothetical situations, then perhaps you rehash the idea, then you think about it some more – meanwhile, you make no money.
People have a lot of ideas, in fact, everyone has ideas. Everyone has thoughts about money, and what it would take for them to live off internet income, or doing what they love while making money. They calculate how much it would take if they decided to do it… then they recalculate, and think about it some more, meanwhile doing nothing.
Take all your ideas, write them down on a sheet of paper, pick one and commit to it, then stop thinking about it and start doing it! Your self conscious mind will take over with plenty more ideas as you go, but thinking about money will not bring you money alone, it requires action as well. If you get more great ideas, simply write them down and continue on without dwelling on what if’s and wondering if it’s possible.
There is no magic pill for making money. It takes time, focus, discipline, knowledge and most importantly action.
- Get a second job
- Start a business
- Go to night school
- Do some research
- Talk to friends about your ideas
- Start studying
- Apply for higher paying jobs
- Read about how to make money
- Attend events
Stop thinking about that next step, take it and instead start acting in a direction that will teach you as you go. Your dreams and passions will not come true just by you thinking about them, so stop thinking, and take some action!
Are financial advisors making too much money?
Despite the some of the public thinking that many advisors are making too much money and ripping people off – I have seen very little evidence of this. I have never personally heard of any advisor saying they are in the industry because its well paid. Nor have I ever heard anyone make a comment about how much money they have made from a client. I have though heard these types of comments in other industries. My experience thought is mainly within the financial planning community rather than other areas of the financial services industry, and of course I do admit that I might be a little biased as its an industry that I have spent over a dozen years in.
Most advisors I have been around over the years are in the industry because they genuingly want to help people. They are very dedicated and hard working people. I believe there are much easier ways to make a living than being a financial advisor and there is no way you would join this industry because it was a good way to make money. You might be surprised how low the average income is for a financial advisor. A survey I looked at a few years ago suggested it was lower than the medium income. Like any industry there are those who do very well. You will typically find though that these advisors have been in the industry for a very long time and have a well established client base. In my experience financial advisors make a lot less than other professionals like accountants and lawyers even though many of them have the same amount of education and experience.
I don’t doubt there are a few out there that you could argue are ethically challenged –just like you find in any industry. Mark Bryers from Blue Chip is a classic example along with some of the directors of finance companies. Its devastating the damage that some of these people have created in the lives of many hard working Kiwis and they should be made accountable.
The reality is I expect that most people aren’t too concerned what they pay for a product or service if they believe they get good value. Do you know want from your advisors and have you clearly communicated your expectations to them? Have you thought about how you measure value?
Its really important that you ask questions from any potential advisor you are considering working with including how they are getting remunerated. Under the disclosure regulation a financial advisor must tell you how they are getting paid. The information is available however it does require some effort on your behalf for you to read the relevant documents and ask questions. A little bit of homework at the beginning of any professional relationship will serve you well.
Do you feel that advisor make alot of money? What would you like to change about the way advisors charge for their services?
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