Worst Per­form­ers

Sunday Mail - - WORLD -

IOOF Hold­ings ....... -33.33% Ly­nas Corp ........... -20.00% Aus­drillLtd ............. -12.41% After­pay ................. -11.99% Met­cash Ltd ............ -11.91% Adel Brighton ........ -10.23% Seven Grp Hldg ....... -8.41% CYBGPlc .................. -8.01% Pil­baraMin ................ - 7.73% Seek Lim­ited ............ -7.46% A MATE of mine has a $3500 kayak. I didn’t re­alise that a kayak could cost that much.

Ap­par­ently, it’s all to do with the de­sign, the qual­ity, the deluxe padded seat and – wait for it – the foot ped­als. Yes, to­day’s top kayaks have foot ped­als to al­low your legs to do the work while your hands hold a fish­ing rod, a cam­era, or maybe a beer.

In fact, you can now spend a lazy $6600 on a new kayak with all the bells and whis­tles.

Af­ter jok­ing about my mate spend­ing big money on a glo­ri­fied pad­dle boat, we started talk­ing about needs ver­sus wants, and quickly re­alised that more than 90 per cent of ev­ery­thing peo­ple buy is a want, not a need.

As we head into the year’s cra­zi­est fort­night for spend­ing money, it’s worth tak­ing stock. Needs are food, clothes and shel­ter, and enough stuff to stay healthy, but not much else.

Wants will al­ways dif­fer dra­mat­i­cally from per­son to per­son. Whether it’s break­fast ce­re­als, brand-name cloth­ing or boats, no­body should feel guilty about spend­ing money on some­thing they want.

If the needs are cov­ered, go for it and en­joy. The key is to know what you want, and also what you re­ally re­ally want. Just like the Spice Girls asked.

Be­fore Christ­mas con­sumers are bom­barded with mes­sages to buy stuff for them­selves, chil­dren and other fam­ily mem­bers that they don’t re­ally want. Think stock­ing fillers – isn’t that just a trick term to buy a bunch of cheap junk that kids will never play with?

Then there’s the pop­u­lar buy one, get one free deal. But if you don’t re­ally want the free item, is it worth it? Smart shop­pers use a few strate­gies to make sure their money is wisely spent on things they want. They will:

shop with a list, which low­ers the risk of im­pulse buy­ing.

them­selves again if they re­ally want the item, be­fore they take it to the cash regis­ter.

if they’re buy­ing the best deal. Re­search­ing this has never been eas­ier thanks to the in­ter­net.

pre­pared to ask for a dis­count, or at least if they’ll price match.

Wants be­come dan­ger­ous if we go into debt to pay for them, and have no plan to get out of that debt be­fore painful in­ter­est charges hit.

If you can af­ford your wants and are happy with your spend­ing, ig­nore any­body who says you’re wast­ing your money. The main pur­pose of money is to cre­ate rich ex­pe­ri­ences rather than have riches locked away in a safe. If you can do both, even bet­ter.

If in­stead, you feel like your fi­nances are sink­ing, it’s prob­a­bly a sign that too much money is be­ing spent on wants. Pro­fes­sional fi­nan­cial ad­vis­ers or free fi­nan­cial coun­sel­lors may be able to help get back on track.

Re­mem­ber, there’s noth­ing wrong with want­ing stuff. My mate loves his ex­pen­sive kayak. Good on him. I’ve also been known to splurge on boats — all in the name of fi­nan­cial re­search, of course.

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