Morena! Morena!

So Christmas, Boxing Day, New Years Eve and New Years day have all gone by – we have the photos, the memories and now the bills to prove it.

Poor Man2009 was a shocker of a year for many of us – job instability, little access to loans from banks, frequent visits to Cash Convertors and more money spent that received.

Thinking CapMany of you have sent thru New Years Resolutions based around refocusing on life and its essentials: health, family, fitness and finance sound like the Top 4. So then, there have been a few nudges for us to post advice on saving money and making money in 20/10, so we’ve put our thinking caps on and put together this:

Top 10 Ways to Save $$ & Make $$ in 20/10:

10: Be honest and look at your daily, weekly, monthly spending NOW
It seems easy enough to do but one of the most difficult things to admit to – how much did you REALLY spend over the XMas/New Years break? Most would say “…oh, only a few hundred” when actuality it was probably more like a few thousand! Not only were presents brought but you also paid for food, rent, petrol, a few dollars for ice cream, a this and a that…all of this can really add up, so it pays to write down how much you spent and on what (regular bills included). It might be private but at least younow have a good idea of where all your money has gone;

9: What is your current job and how much to you get paid before tax and in the hand?Money
Probably more important than #10 as it determines how much you can actually spend. In this instance, how much did you make last year, last month and in the next 4 months? Figuring out how much you paid out needs to be matched by how much you brought in. If they are even, then ka pai you. If you earned more than you spent, massively awesome! But if you spent more than you earned, please read on…

8. Put together a Budget and look where you can make Savings over the next 4 months
Now is probably a good time as any other to now put these two sets of working sums together and figure out your current financial health. We must remember that the more assets and capital under your control, the more choices Coin1and options you will have. In any case, a Budget sets out your financial position and begins to see where some savings can be made. For instance, are you doing an AP that can be brought down a little? Do you really need to buy a brand new car when 2nd hand will do? How many coffees do you drink in a week? The Budget is the first tangible action to saving any money and starting to set your financial future. It is always good to remember that the more you spend, the higher the risk. Spend $3 and lose, well, that’s dumb but life goes on. Spend $2000 and not be happymeans major problems ahead. Add to this, where you do find savings, instead of splurging, pay your debts as this will save money on interest charges and free up long term cash later; putting coins in a savings jar is great too;

7: On 1-page, write out your Lifes Dream, your FinancialTargets and prepare and develop a definite step-by-stepPlan of Action
Some advice I overhead went “Every well built house started in the form of a definite purpose plus a definite plan in the nature of a set of blueprints” (Napoleon Hill) amd that so rings true for me. All it takes is writing down on 1-page where you want to be and then think about what it will take to get there. Clear, simple statements are good. You could well be looking to improve many areas in your life (i.e. whanau, work/life balance) so, by focusing on your Big Picture View of Life and then marking progressive steps toward achieving, it is possible to buildtoward fulfilling those dreams;Money3

6: You have you now, sogo and get others
What we have found is that no matter what the area, it is always invaluable to get some advice from someone acting as a mentor. The great thing is mentors are everywhere and pretty much freely available: if you want to be a chef, go to your local restaurants and try to talk to the kitchen crew. If it is a Hairdresser, go to your favourite salon and talk it over with them. They are bound to give you invaluable advice and the perfect guide may be there to help. Utilise whanau and friends to meet those involved in your focus area and get them to meet with you, txt you, give you rough nuggets of advice. Always respect what is taught and where possible, pay them back with compliments and even a meal if you are able. Your Action Plan should hint toward the direction you a re looking and a localYellowpages (or CAB, online, or parents/elders) could put you in touch with people who can help. FInance is most definitely a team sport, so bring together a great time with excellent coaching and support staff. Always be discussing and where needed changing your Plan of Action;

4: Know the difference between necessity, habit and luxury and save the difference
You should now be able to see what is necessary (like your mortgage, rent, power, phone, food, petrol etc.), what are your habits (daily coffee, weekly dvd’s, takeaways etc.) and what are your luxuries (multiple cars, impulse purchases, new toys, etc.) If you are serious about whanting to save $$ and make $$, the first thing to do it look at the necessities – now, is it possible to reduce these costs? For instance, do you really need a landline if you mostly use your cellphone? Are you able to reduce your internet plan? Is it possible to find a better insurance rate and package the house, car and content for greater savings? If so, please do. Now, the next two come under the “do you really need this” category. Did you realise that if you take a home-made lunch to work everyday, ate out only once a week Coin3and drank one to two coffees a week, you would save hundreds a month and thousands a year? How much you save is just as important as how much you make. The key here is to treat a luxury item and a habit as part of your ‘leaky pocket syndrome’ and some urgent repairs will be needed there but will be so worth it. Once you have saved a few dollars, put it in an account you can’t readily access straight away – you will need this in the coming months;

Money23:Adopt an Entreprenurial Mind
Now we’ve spent the first 7 ideas talking about saving money, because these areally your fundamentals in creating a strong financial growth system. Ultimately its about the basics – knowing what you make, watching what you spend and re-prioritising on the move. This one is equally fundamental as it looks into opportunities around making money. You must adopt an entreprenurial mind. Do you have a skill you can teach to a small group (like english language, cooking, te reo) or do you have a shed filled with items you no longer need? Can you bring together a dynamic team and cover the market in a unique product that you have designed and developed or are you able to create a killer product for an upcoming market? Take a look and listen to problems faced by friends and whanau and research solutions – if you are first to market, sell it, focus on pleasing your new customer and improve the product/service. It could also be called monetising your hobbies. New Zealand has a habit of squashing the entreprenurial spirit (we’ll talk about this a lttle later) so get some advice and be ready for a challenge. Remember, people are spending smaller amounts today, so it will take a keen eye/ear to figure out what people will pay for and then evaluating how they can purchase from you. But selling a service or a product are all in the mind and while it is totally freaky, it can be rewarding;

2: Introduce yourself to improve your prospects
It is said that networking is the key to any successful venture, as it is as much about what you know as it is who you know. Look in your local paper for opportunities to meet with people in the same industry as you, to talk to peopleCoin2 in the same field and to take courses and ask the experts about what you can be doing to improve your prospects. Initially, it will be word of mouth that gets you those valuable first referrals, so circulate and spread your net widely. It could be at the kids sports gameon Saturday or while taking the kuri for a walk – talk with passion and with clarityto people who could be interested in what you are doing. In this instances, money is usually mentioned last, as the personal relationship requires that you build some sort of bond first. Taking courses to improve your skill base is vitally important as this new economic era requires that many of us re-tool but always be ready to quick pitch. If you have had a few jobs, use some of that money to buy Business Cards and start to utilise Social Media to get your name out there (this includes your local shop noticeboard);

And the Number 1 way to Save $$ & Make $$ in 20/10 is

1: Treat every dollar like it is an investment
Huh? Nah true whanau – by now you could have saved a few dollars and made a few dollars, so you already have a Money1good idea that every dollar, every single cent is important. What we have written here look like things that can be done immediately but it will actually take time for many of them to pay off. There is lots of advice about what to develop, where to buiild, who to connect with and we recommend you take a look at all of it. For instance, it is important to stick to what you know and improve from there but equally important is to go where no one else is – it could be risky but it could also mean you are in position first. We have seen that everything changes – 10 years ago, few knew who Google were and today they dominate the internet. The same could happen to you, so it all depends on your personal attitude, commitment and ability to bring ideas to action and to turn action into results.

As stink as this sounds, keep focused on the bottom line as this will ultimately determine whether your dreams, targets and ideas rose to the top or sunk to the bottom. Over the next 12 months, we will re-visit this blog and continue to keep you updated.

Korero more soon.
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  • Sent in from The Great Attractor:

    To get yourself out of "the hole" as it were, you
    need to do 4 simple things.

    They aren't "sexy" or "exciting" but there's no
    way around it. You need to knuckle down and do
    this stuff *now* unless you want to have that
    monkey on your back forever.

    1. Stop the Bleeding

    You need to get in and find out where you're
    bleeding cash and put a stop to it – immediately.

    2. Stop the Stress

    Chances are there are several factors in your life
    that are making your situation more stressful than
    it needs to be.

    Is your significant other stressing you out and
    making you paranoid?

    Do you have bill collectors hounding you?

    You've got to get them off your back – and fast.

    It's quite difficult to make sound decisions when
    people are stressing you out.

    3. Get a Cash Injection

    There are so many ways to generate revenue right
    now on the Internet that are so easy, there's
    absolutely no reason not to give yourself (or your
    business if it's your business that's in trouble)
    an immediate cash injection. It just takes a little
    concentrated action.

    4. Refocus

    Whether you're fending for yourself or for the
    survival of a whole business, you need to ask
    yourself:

    Will the thinking that got me in this mess keep
    me out of it?

    Probably not …

    You need to figure out what's important in your
    life and what's gonna' make you happy. You are
    obviously not doing something that's making you
    happy or you wouldn't be where you are right now.
    (no offense – we've all been there)

    This process is pretty obvious and simple … but
    hold up for a second.

    It's very likely you're about to fall into what I
    call an "I already know that" trance.

    Knowing it is one thing. Doing it… Well, that's
    a whole 'nother "ball of wax."

    So, you get it – why aren't you doing it?

    Two reasons:

    First, the above plan has a few blanks to be filled.
    If you start out on a plan like that on your own,
    it's quite easy to get stuck without knowing the
    "where to now" details.

    Second, you don't have anyone to guide you through
    the process. It's tough going it alone…

  • potaua

    Kia ora Amelia. Thanks for reading and choice for your comments.

    For us I think #10 was the most difficult – I mean, who really wants to be honest with their finances, especially during the holidays, christmas, etc? But we've had to have a better look at where our money goes and importantly, look at the bills which don't stop coming during this busy time.

    #9 has been very revealing for the fact that when you are in business but very little money is coming in, you have to be creative and think about how to pay the bills, let alone pay yourself. When we had regualr work, things were a little easier as the job/boss always looked after pay, taxes, etc, whereas now, it's all about us and if help isn't right there, problems will definitely arise.

    We are currently working on #8, the Budget at the moment (which also depends on the mahi we have now and into the future) but think it is all about paying bills now and going from there and #7 is being written tonite, which I will post in the next few days.

    Now, #6 is something I've been extra active with – connecting with the likes of the Business Facilitation Service at Te Puni Kokiri, reaching out to friends and whanau on Facebook, emailing inquiries to people I consider experts. My thought was never around building a team – it is now as I can really see the collective gaining momentum much better than the lone wolf approach. It is also a great way to hear about opportunities and to gain better insight, information and analysis.

    Hehehe – just spotted that there is no #5 so will add that in later tonite (aue eow!!)

    Since writing this blog, I've had a better look at impulse buys and things that are purchased but not really necessary. The first part is identifying where the money is spent, the next is cutting back where it doesn't need to go. We've started making more breakfast, lunch and tea at home, take snacks from home when we go out for a walk and don't buy things just because they look cool. Taking the 24hr approach to non-essentials (see it' love it, wait 24hrs and will probably see that it is not really necessary) really seems to work. it is all those little buys that do add up that we have to watch…

    Since adopting an Entrepreneurial mind, I've been able to see ideas all around me and can't wait to apply these in rotorua and online. I'd like to talk more about this soon so will post a blog to go more indepth I think.

    #2 is going to mean buying Business Cards – a real basic. Another easy one is to practice a 15 second pitch so that when people ask, I can convey what we do and what we can do for them. We're working on a Business Board to go by our office (most people don't even know we have an office) and will start getting some tshirts, stickers made to spread the word + support material we can hand out.

    And #1 is probably the one piece of advice I love the most. Every cent is precious and can be wasted, much like water. You know, if there were an equivalent of leaving a bucket outside to collect the rain drops I would do it (is that considered passive income??) but truth be told, every dollar spent means less to buy things later and at the same time, every cent saved goes toward building a cushion which will help during those rainy days.

    When we worked, the pie could be easily rationed. Now since we're the bosses and the workers, things are way more difficult to predict. My advice at the moment would be to pay the bills this month and into March, save a little each week, even if it is $5, pause before making any big purchases, don't utilise credit too readily and start looking for ways to turn $1 into $2.

    We have a few projects underway which hope to do just that and if you want to learn more, please send me a message potaua@tangatawhenua.com.

    Thanks again Amelia.

    BTW, do you have any advice on these and/or what would you recommend for #5?

    na Potaua

  • Amelia Te Aroha

    Love the korero, would love to know about the experiences yous at TangataWhenua.com have encountered (re the above) and what you did to take thoses opportunity or overcome the challanges etc. Chur!