How to start investing now

Thursday 4 November 2004

Who wants to sacrifice present consumption like purchasing a new car or having that spring break in Fiji for future financial security? Apparently not many people in New Zealand.

By The Landlord

After all, you only have to look at the huge increase in use of credit (debt accumulation) cards over recent times. But how much money does it take for an individual to put aside now for a future with greater financial security?

Investing is basically the sacrifice of the certain present benefit (the new car) for an uncertain future benefit (increased income during unemployment).

You may have accumulated or inherited cash, or have the expectation of savings generated from ongoing income. Thus you have the choice ? immediate consumption or postponing spending till some time in the future. There may be many complex reasons for delaying spending until the future e.g. reluctance to borrow for major purchases, to cover ongoing expenses in the event of reduced income like retirement or to pass on wealth to a younger generation.


If you have decided to defer spending today, naturally you would expect some reward i.e. return. Realistically any investment involves risk, returns are not guaranteed but the investor may make choices to reduce the probability of losing capital and return.

Read More - Opens in a new window
Commenting is closed

Property News

Covid be damned – the market is booming

Those who were anticipating a Covid-prompted housing market collapse got it wrong with the latest REINZ data revealing strong growth in prices and sales.

Commercial

Augusta Capital takeover bid now unconditional

ASX-listed Centuria Capital has declared that its takeover of New Zealand property funds manager Augusta Capital is now unconditional, as it has secured nearly 66% of Augusta’s shares.

Mortgages

Borrowing boom in July – before second lockdown

Home lending soared to $6.5 billion in July during New Zealand's Covid-free period, reaching its highest level since November last year.

Site by PHP Developer