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August 02 newsletter
Should you invest overseas? We have updated the information on Portfolio Investing to help you answer that question.
Welcome to the Shape of Money's step-by-step programme on the secrets of wealth.
The programme has previously covered three secrets to wealth: planning, tuning the thinking engine and, most recently, budgeting.
The fourth secret to wealth is the "tempest".
Before the election, we began to look at the "tempest" and how the Zolas might apply it. To help the "tempest" work effectively, they needed to do some work on "successful budgeting".
Now that they have been using a budget regularly for several months, they're gaining an accurate picture of where their money goes.
Last month, the Zolas discovered that they're expecting a second child (a younger brother or sister for Samantha). While they'll be entitled to some Government assistance, it has made the need for their new home more urgent.
After doing more work, they're confident that they have a realistic budget. The work on their budget also uncovered a few nuggets of information.
The Zolas now have four financial goals:
Now that their budget is ready and they've refined their goals, they're in a position to start looking at where they can save money. The "tempest" works quite simply: try and save 10% on each of your expenses. Some you won't be able to change in the short term, such as rent, but on others you may be able to save more than 10%. The Zolas were surprised, for example, to work out that giving up takeaways will save them over $5,000 over the next four years. With other costs, you may be able to save 10% by careful planning and focus.
Next month, we'll see what changes the Zolas have made in order to save $22,500 of their required $30,000 over the next four years.
Tune your internal thinking machine with tip number 4: Be completely and utterly focused on your goals.