It seems to me that the alternative to people forward planning and taking responsibility for themselves is begging via “give a little campaigns” Here is a good article on how to avoid the need to beg:

http://www.nzherald.co.nz/personal-finance/news/article.cfm?c_id=12&objectid=11490116

If you don’t have an insurance broker who’s regularly in touch, there’s a good chance you’re paying for insurance you don’t need.

Even worse – you could be forking out for insurance you’ll never be able to claim on, while failing to cover risks that apply to you.

One of our clients had an Income Protection policy but he wasn’t even working. He had no regular income to protect so his monthly premiums entitled him to a big fat zero. However, he did need travel cover – but didn’t have it.

Don’t fall into this trap.

If you aren’t really sure what cover you have, or haven’t heard from your insurance broker for a while, I’d be happy sit down with you to review your policies. I can help you check your cover against your lifestyle and risks, and then review your policies if you don’t have an insurance broker to assist you with this.

Make an appointment

We seem to have entered an era of persistently low interest rates. Who would have predicted several consecutive years during a time of economic growth with home loan rates below 5%?

You can treat these low interest rates as a windfall and cruise through life with a higher debt load than before. Or you can use low rates as an opportunity to pay down debt while the economic climate is sunny. I recommend the latter.

Here’s the process I have followed to get rid of debt faster.

First, look at all the small, regular expenses that leave your bank account each month. I reviewed my outgoings and realised I was paying for satellite TV I hardly watched. $100 a month to Sky to watch one game of rugby hardly screams ‘essential.’

Identify these lazy expenses (I can help you with this) and then cut them.

Next, put the money saved against any debt. Get rid of any credit or store card balances, and then ramp up your home loan repayments. You may have to change the structure of your home loans, and this is something I can assist you with.

Now is the time to take steps to pay down debt. If you follow the process outlined above, you’ll hardly notice any difference in your lifestyle.

If you would like to review your household expenses, come in for a sit-down session, and we’ll put together a plan that enables you to pay down debt faster.

Make an appointment

I’ve spent several decades in the financial sector and written hundreds of millions of dollars of loans. Being financially literate is a cause I passionately believe in – but money has never been the driving force.

Instead, I’ve found that life decisions are best made when you work out what you really want, and follow a logical process to get there.

Here’s what worked for me. Maybe it could work for you too?

Step 1. Choose the personal goals that inspire you.

Newly single at the age of 33, I asked myself where I wanted to be in 25 years. The answer was that I wanted to own property, be debt-free and have plenty of opportunities for adventurous travel.

Your answers might be different – but it’s important to ask the big questions. You might put it like this: “How do I have a great life?”

As Steve Jobs said, “Your time is limited, so don’t waste it living someone else’s life.”

Step 2. Create a financial plan to get there.

I suggest you work backwards from the end result, and calculate the amounts you’ll need to get there. For me, the process involved working out the average rent I’d need on a property portfolio to cover my desired income at 60. This provided the basis for creating my property portfolio.

Having a plan with a concrete goal took sentiment out of the property buying process. Decisions were made on rental yield. If the numbers added up, I put in a bid. If they didn’t, I moved onto the next opportunity.

Step 3. Live the dream.

Your financial plan is only a means to an end. It’s simply what gives you the freedom to live your own, unique dream.

My dream lifestyle involves regular time off in places like Bhutan, the Maldives and Norway, where the culture is very different and the challenges are real. In the last five years I’ve been skiing in Japan and mountain biking in Inner Mongolia. I learned to ski at 50 and in the same year completed my first duathlon (which I’m proud to say I won) and took part in my first triathlon. I won my age group in that competition, and if the ankle biters hadn’t been in my race I’d have been 2nd overall!

Of course, there are a few tips and tricks you can use to help you achieve your own particular dream. One is to find a mentor and ask to be held to your commitments. I’ll cover this in next month’s edition of Matters of Interest.