Let's have a quick chat about fees. You slave away like a minion 40 hours a week diligently contributing your hard-earned moolah to your KiwiSaver (if you're not contributing, here's why you should be) so hopefully one day in the hopefully near future you might be able to join in the craze of purchasing some brick and mortar. And in the hopefully not too near future, you can enjoy a nice game of bingo with the other pensioners without having to worry about who's paying the power.
The other morning I came across this article about borrowers seeking loans from non-traditional sources, one such source being Peer-to-Peer lending. I had read about peer to peer lending previously and was familiar with the concept although had never gone much more into it than that. This article perked my interest, so I went and explored a New Zealand based peer-to-peer lending platform, Harmoney. Harmoney works by connecting those who are looking to borrow money with those who are willing to lend it. It does a lot of middleman man work like credit ranking borrowers and rating them based on their risk profile.
The in your face answer to this is to of course pay down expensive high-interest debt first, credit cards and personal loans spring to mind. These can sit racking up 20%+ interest, a rate of return you will be hard-pressed to beat through investing. Therefore it makes sense to get rid of these as fast as possible.
This will probably be the only time I wholly endorse sinking yourself into more debt. But this is the best debt you could possibly ask for. Interest-free money! I wish I would have thought of this earlier on. In my second year at university it hit me, why wasn't I taking everything I could from my student loan. I had a part-time job which covered the majority of my expenses and in an effort to remain as debt free as possible was drawing only a small amount of my living costs per week. Oh, the missed gains.
It's a new year so its time to get your finances sorted out, here are a few things that can quickly and dramatically help you get your finances into shape. If you are an employee make sure you are a member of KiwiSaver and are contributing the minimum of 3%, your employer is legally obligated to match you dollar for dollar, meaning a risk-free guaranteed 100% return on your money.