The world of personal and family investment can appear like a daunting prospect for those who have avoided the topic for years. There have been dubious schemes, marketing campaigns and whispers from friends and family about what actually constitutes smart advice and strategy. How is anyone supposed to make sense of it all and where can the gains be made in the real world?
Fortunately there are mechanisms for local New Zealanders to create wealth from just modest savings, allowing them to diversify their assets and create additional streams of revenue without becoming experts in their own right. By adopting a degree of commonsense and a dose of hard work, this is an endeavour that anyone can succeed with if they approach it in the right spirit.
The very first approach that New Zealanders can make with investment strategies for their own wealth is to educate themselves on the subject and throw themselves into it. Speaking with those who have experience in the industry, connecting with friends and family who have tested the waters and reading, listening and watching investment materials will open up new schools of thought. Some perceptions might be challenged while others will be affirmed. Education is a personal investment in and of itself, and this is where the real hard graft begins for citizens.
There will be thousands upon thousands of New Zealanders who will argue that they already have enough trouble balancing their day-to-day costs than worrying about investment strategies. An approach that is beneficial for citizens in this situation is to keep these core costs off the table as far as investment is concerned. From the groceries to the fuel costs and the mortgage repayment, there are just some funds that cannot be touched under any circumstance. This will reduce the risk and ensure that the capital that is used for investment is directed to the right channels.
It is always helpful for New Zealanders to embrace investment strategies that are designed towards a larger objective and financial target. Is this an exercise designed to maximise retirement savings? Is it to save up for a new home purchase? Is it something as short-term as an end of year holiday trip overseas? Putting down a tangible target on paper and working towards that goal helps to drive motivation levels while keeping the participant accountable.
Having a wide portfolio of options helps to improve the chances that these investment strategies will pay off for citizens. This could be achieved through a range of selective measures that are deemed to provide a quality return on investment (ROI) over the span of 5-10 years or more. From a startup business venture to the acquisition of property or the purchase of stocks, there are different methods that can be packaged together under one umbrella.
Working with an accredited financial advisor is where New Zealanders can really embrace the best investment strategies available. Although there will be others who push back against this approach if they feel confident they can educate themselves, this is an exercise that can point individuals in the right direction. There are obligation-free consultations and short-term referrals that limit the financial commitment with these specialists. That can allow the two parties to speak freely, passing on their experience and expertise about the investment market and what they recommend based on the available capital.
Community members can spend weeks, months and even years debating the merits of using investment strategies, but it is only through tangible action that results can be achieved. It is worthwhile starting small and building to something bigger, putting cash away for ventures that return serious dividends over the course of months and years.