Most people save for a purpose. It could be to buy a property, a car, a business, or usually it is for a secure retirement – at the time when you cannot work.

         With increased life expectancy your retirement could cover a third of your lifetime.

When your outgoing exceeds your income your upkeep can be your downfall. It’s very important to spend less than you earn.

A Handful of Tips to help you invest your

hard-earned money

* Save Regularly

         Try to save at least 10% of your earnings each payday. If you cannot do that start looking for another job, or even a second one.

         Don’t be someone who spends first and then tries to save what’s left.

         If possible arrange an automatic deduction each payday and budget from what remains.

         Save early. The length of time you invest increases the amount of money by an impressive amount, especially if you learn the power of compounding interest rates.

* Pay off high-interest debts

         Give priority to paying off high-interest debts first. Pay off credit card loans as soon as possible. Better still don’t use credit cards – pay cash.        

* Live within your means

         Budget to live within your means. Jot down all your expenses for a couple of months to see how you spend your money.

         Reduce your non-essential spending.

         Decide what is essential and what is not essential. “Do you need all that coffee in town? Can you eat more at home?”

*Seek professional advice

         Read about investing and seek professional advice. You don’t have to follow advice but it can give you some good leads.

         By doing your homework you will save money and reduce your stress.

* Spread your risks

         Spread your money over several different types of investments. “Don’t put all your eggs in one basket.” Consider bonds, shares, property, and income-based assets.

         Remember, money is a good servant but a poor master.

Geoffrey Moss(mossassociates.co.nz)

“The more you sow, the more you reap.”