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Change your financial outlook with one conversation
When it comes to managing money, everyone has an opinion or hot tip to share. Just jump online and you will quickly find a bottomless source of chatter and advice about how to reach your financial goals.
While doing your homework online is a great first step, trying to filter through this content can be overwhelming.
Head of Resimac NZ, Luke Jackson, believes all too often New Zealanders place limits on their financial future because they do not have the right information.
"From fearing debt to thinking you won't qualify for a loan, there's a lot of misinformation out there that stops people from exploring their aspirations," says Luke.
Join Luke as he separates the fact from financial fiction and shares how you can change your outlook with just one conversation.
Good versus bad debt
One myth that stops people from getting ahead financially is the idea that all debt is bad.
"At the beginning of each year, we think about the essential items or big dreams we'd like to achieve. Some of these goals, such as buying a home or investment property, upgrading your car or starting your own business, won't get off the ground without financial support.
"Debt can and should work as an asset for you. The important question to ask is whether your debt is working to get you ahead, or are you working for the debt?" says Luke.
According to Luke, when debt is clearly aligned with your overall strategy, it becomes easier to make positive financial decisions.
"Good debt contributes to your future potential and sustained happiness, while bad debt such as personal loans or overdue credit card bills will stop you from moving forward," says Luke.
Understanding the difference between good and bad debt will allow you to balance ‘in the moment' choices with your longer-term financial plans.
Don't let your past define your future
Very few of us make it through life without experiencing a financial hiccup or setback, but these past experiences do not have to define your future wealth. Missed payments or the impact of a major life event, such as divorce, are bumps in the road that can be addressed.
"If you have a low credit score due to previous financial blunders or misadventure. it's not the end of the line. With time and discipline, you can improve your credit score by lowering your credit card limit and committing to paying your rent, mortgage, and utilities on time and in full," says Luke.
You may also be able to access financial support during this time.
"Resimac caters to a broad range of borrower types and offers a variety of innovative lending solutions that are tailored to meet their evolving circumstances," advises Luke.
The most important finance conversation you'll have this year
2021 is likely to be another challenging year for New Zealanders. With upcoming regulatory changes and continued uncertainty for employment and property markets, it is essential to speak to the experts, says Luke.
"Each person's financial journey is different. You won't know what is truly possible until you've spoken with a financial planner or loan expert who can assess your situation and provide you with specific advice.
"Spending an hour with a financial expert could change your entire financial outlook for 2021. Resimac can then work with you and your planner or mortgage adviser to realise those goals," concludes Luke.
If you have any queries or want to chat more about the features of your loan, our Customer Care experts are on hand to help. Please contact Customer Care via customerassist@resimac.co.nz.
Luke's tips for improving your finances in 2021
- Define your financial goals for the year
- Talk to a financial planner to understand your position and develop a tailored strategy
- Share your plan with your adviser or Resimac customer care team to make it happen
The opinions expressed in this article are the opinions of the author(s) and not necessarily those of Resimac. The above is general commentary only and is not advice tailored to any individual's financial situation. We recommend seeking advice from a finance professional before implementing changes relating to your finances.
