The Simple Life: Drop the shopping, Save your finances
It seems as though shopping has become a part of our daily lives. Walking through malls and browsing online has become a hobby for many. However, is it actually necessary? In this article, we explore the idea of letting go of shopping and instead, investing in our futures. Mary Holm, a New Zealand-based financial author, shares her thoughts and provides insights into how she manages her finances.
The downside of shopping
As we accumulate more and more belongings, clutter becomes an issue. In addition, we also leave behind the burden of our possessions for our loved ones to deal with when we’re gone. Clothes shopping can also be a nightmare for those who struggle to find pieces that fit their body type. Holm personally avoids shopping for clothes, makeup, and jewelry altogether. Furthermore, investing in “posh” brands can be a trap, as often the products don’t justify their high costs.
Invest in your future
Holm’s approach to finances is simple: invest in what you need instead of what you want. At the age of 25, she made the decision to buy a house in Auckland with a $10,000 deposit. Instead of buying a bigger house or trying to keep up with the latest fashion trends, she invested in herself and her future. She also advises young people to open and maintain their own bank accounts in addition to a joint account with their partner.
The Five Gs
Holm lives by the motto of the “Five Gs” – groceries, golf, gardening, gym membership, and giving. She believes in cooking from scratch and eating most meals at home. Playing golf, gardening, and working out at the gym are all investments in her physical and mental wellbeing. She also regularly donates to her family and charities.
Choosing smarter investments
For those interested in investing in shares, Holm recommends exchange-traded funds (ETFs) as a good starting point. ETFs invest in a wide range of companies and charge low fees. However, there’s also an option for unlisted index funds that operate like KiwiSaver funds and can be purchased directly from the provider. Holm explains that unlisted index funds typically have lower total costs for investors as no broker fees are involved.
The Simple Life: Drop the shopping, Save your finances, invest in your future, and choose smarter investments. Let’s all aim to acquire only what we need and stop trying to keep up with the Joneses. It’s a win-win situation for both our finances and the planet.
Related Facts:
– Over-accumulation of possessions can lead to clutter and burden for loved ones
– Investing in what you need instead of what you want can lead to a more financially secure future
– ETFs and unlisted index funds are low-cost investment options that provide good diversification
Key Takeaway:
Invest in what you need instead of what you want. Consider low-cost investment options such as ETFs and unlisted index funds.
Conclusion:
In today’s world, shopping has become a part of our daily lives. However, by letting go of the need to constantly acquire more possessions, we can lead a simpler life that leads to more financial stability. Holm’s approach to finances, by investing in what we need instead of what we want, provides us with a clear path towards our financial goals. So, let’s embrace the simple life and invest wisely in our futures.
