This will be short, sweet, and might just make you a millionaire. 752 - the magic number that is going to change the way you look at money and spending. When you think about your spending how do you frame it? Most people might frame it on a weekly basis, some a monthly, the odd …
So if you're new to all of this you may have noticed me and a lot of other finance bloggers talking about FIRE. But what is it and why do I want to achieve it? FIRE stands for Financial Independence Retire Early, it is the concept of building up enough in investments that you are paid a passive income through dividends or returns thus enabling yourself to live without working.
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 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.
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.