Sometimes the things you really believe to be true just aren’t true. Many people find it hard to believe that it is possible to pay off a 25 year home loan in under 5 years – using less money, and that’s understandable. However it’s important to give new ideas a chance. As they say “success […]
Regulators and some advisors have recently been pushing people towards “principle & interest” (P & I) loans rather than “interest only” (I.O.) loans. The theory and logic is that with a P & I loan, the loan gets paid down, whereas with an IO loan it stays the same. However, there is a lot more […]
To really get ahead, you need to make investing a priority. Most people wait for the world to be perfect before investing, and that time never comes. A wise man was speaking to a group of his students. He put a large jar on the table and carefully placed about 12 large rocks into the […]
Consumer debt Consumer debt is debt incurred on consumer products and services. You don’t get a tax deduction for this sort of debt, so it is really far more costly than tax deductible debt. Consumer debt is usually very expensive – some credit card debts charge up to 22% per annum – and is not […]
Most people only grow their income and wealth in a linear manner. Their income only comes from the number of hours they spend at work. Their accumulated wealth only comes from saving up. The answer for some people is to find ways to increase the number of hours they spend at work and/or their value […]
The best bit is at the end. First we talk about how the world works, then at the very end we talk about how the Canterbury system works. If you are young, you may not think you need to invest or open a retirement account. You probably think it is easier to worry about it […]
The secret to building wealth is not to spend your capital but to only spend the income you derive from that capital. It’s ok to buy luxuries such as flash cars, boats and holidays, but your passive income should pay for them. You should protect the “golden goose” i.e. your capital. It’s one of the […]
Some people think, “I’ve paid taxes all of my life; let the government take care of me in my retirement.” Thirty years ago, that may have made some sense. At that time, there were 7.5 Australian workers funding each retiree. Today, there are just five workers per retiree. If the current trend continues, it’s estimated […]