financial literacy aaaaaaaaaa
I was feeling super overwhelmed and stressed at the start of the week.
I read a personal finance book called Your Money, Your Future by Frances Cook and I was introduced to the world of investing. I mean, I had a Kiwisaver (a voluntary first home and retirement savings scheme here in NZ), so I was technically already investing. But this is the first time I’m actually aware of what my money is doing. The book also gave a formula for figuring out the amount you need to be financially independent.
Monthly Expenses x 12 (to get yearly expense) x 25 = Amount needed for Financial Independence
The number I wound up with was demoralising to say the least.
After some light research, I found out how pathetic the return rate was on my default Kiwisaver account. I felt like beating up my past self. WHY DIDN’T YOU LOOK THIS UP EARLIER?! THINK OF ALL THE MONEY YOU COULD HAVE HAD TO BUY YOUR FIRST HOME!!!
PSA to anyone reading who is still in their default Kiwisaver - reasearch the return rates online with Mindful Money or Sorted’s Smart Investor and be careful of high fees! Low fees are more important than a high returns (according to the book)! Also, you can plug numbers into this investment calculator to see how much your money will grow!
Anyways, I sorted everything out now. I’ve changed Kiwisaver provider and I’ve put some of my savings into an investment fund. Better late than never i guess.