Stop over­spend­ing with money guide

Whangarei Report - - BOOKS - What in­spired you to write The New Zealand Money Guide?

In­vestor, au­thor, en­tre­pre­neur, pro­fes­sional speaker Lisa Dud­son is recog­nised as one of New Zealand’s lead­ing busi­ness peo­ple and ed­u­ca­tors in the prop­erty and fi­nan­cial sec­tor.

She be­gan in­vest­ing when she was just 16 years of age and owns a diver­si­fied port­fo­lio of in­vest­ments.

Dud­son has just re­leased the book The New Zealand Money Guide, an es­sen­tial re­source for all things money.

It’s sim­ple and easy to fol­low and is full of prac­ti­cal ad­vice to help you cre­ate the fi­nan­cial free­dom to live the life you de­sire.

We asked her a few ques­tions: I’ve al­ways been pas­sion­ate about help­ing ed­u­cate peo­ple to be smarter with their fi­nances so they have more op­tions in their lives. This book was a great way to do that.

Do you think New Zealan­ders in gen­eral over­spend and if so why?

Yes they do and the statis­tics sup­port that. The cost of liv­ing is high and there is also a lot of temp­ta­tion to spend money through ad­ver­tis­ing, etc. We are also a bit ad­dicted to ‘stuff’ and of­ten buy a lot of things that we don’t need or don’t end up us­ing, like ex­ces­sive amounts of cloth­ing, din­ners outs, toys, etc.

What are some typ­i­cal money traps peo­ple fall into and how do you over­come them?

The num­ber one is spend­ing too much. Hav­ing a spend­ing plan or a bud­get helps so you don’t get side tracked and buy things you don’t re­ally need. Stay­ing away from the shops also helps as then you won’t get tempted. Be­ware of buy­ing some­thing be­cause it seems re­ally af­ford­able as it’s only $x per week, of­ten the case with new things. When you add all those pay­ments it can amount to a lot of money and cre­ates a reg­u­lar fi­nan­cial com­mit­ment that may not have been nec­es­sary.

What is the $21 chal­lenge fea­tured in your book and does it work?

Ab­so­lutely it does. The con­cept first came out around a dozen years ago and thou­sands of peo­ple have suc­cess­fully com­pleted it. You can use things you al­ready have in your cup­board, fridge or freezer. It’s a great thing to do a few times a year to save some ex­tra money. It might be also great for your waste waist line as well!

Do you have some top tips to help chil­dren save and un­der­stand the value of money?

Have con­ver­sa­tions about money with your chil­dren from a young age so they gain an un­der­stand­ing of money and its value. I also think us­ing pocket money is help­ful.

Is there a way in in­crease your in­come?

There is a chap­ter in the book about this. One idea is to in­crease your skills and ed­u­ca­tion so you are more valu­able to an em­ployer.

How do you get the best out of your mort­gage?

Put any spare money you can into ex­tra mort­gage pay­ments, even if it’s only a $100 a month, over time it will save you a lot of money in in­ter­est costs. Hav­ing a goal of when you want to pay off your mort­gage off, that you re­view reg­u­larly, helps you stay fo­cused.

Do you have some money sav­ing tips?

A great one is to pause be­fore you spend any of your hard earned money and ask your­self if what you are go­ing to buy is a good use of your money. It will help you be a lot more con­scious of your spend­ing.

Who do you think The New Zealand Money Guide is tar­geted for and who will it help?

Any­one who wants to be im­prove their fi­nan­cial po­si­tion. I had a num­ber of peo­ple re­view the book, in­clud­ing some who are very fi­nan­cially savvy and even they learnt a few things. The book is easy to read and un­der­stand. It cov­ers a wide range of con­cepts; mind­set, money man­age­ment, in­vest­ing, Ki­wisaver, plan­ning for re­tire­ment, get­ting the most out of your mort­gage, stay­ing on track.

Do you have an­other book in the pipe­line?

Not yet. I’ve now writ­ten seven books so I’m sure there will be!

The New Zealand Money Guide All you need to know about be­com­ing fi­nan­cially se­cure by Lisa Dud­son, $29.99

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