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10 immutable laws of money; Creating a five year plan; Money in your 20s; Mortgage free in retirement; Review, renew, and reestablish; Win a copy of my book

Personal Finance
10 immutable laws of money; Creating a five year plan; Money in your 20s; Mortgage free in retirement; Review, renew, and reestablish; Win a copy of my book

By Amanda Morrall

Well, I used to think this was the cheesiest, most commercial Hallmark occasion on the calendar but today I'm blissing. I'm in love with life and it feels awesome. A few factors, some special people, have enhanced my rosy outlook but mainly it's owing to a quantum shift in my thinking of late. So Happy Valentine's Day to all you loyal readers out there. May you share your love even if it's with your cat. 

1) 10 immutable laws of money

What distinguishes those who get ahead from those who languish or stay trapped in a vicious cycle of debt? Choices. Here, via Zero Hedge, are 10 immutable laws of money that shape your financial destiny. Some sensible advice.

2) Five year plan

Back in my 20s, when I was working hard to find a good job in journalism, when there weren't many going around, I went through several job interviews. I dreaded them because I thought most of them were contrived and missed the point of the meeting (which had to do with whether it was a good match) by focusing too heavily on questions themselves. One that I dreaded answering had to do with the plan; "So what's your five year plan Amanda?'' At that time, I couldn't really think further than my next holiday. Such is the thinking of your typical 20 year old I suppose. Now I'm all about planning, five, 10, 20 year plans are starting to form in my head.

Financial blogger Wisebread.com offers some suggestions on how to create a five year plan here.

3) Money in your 20s

Incidentally, I also came across this personal blog on managing money in your 20s. Also some good advice. Of course, my mother nagged me incessantly about these matters back in my day but I duly ignored her. Yes mum, you were right, as usual. Never too late to take control of your finances. 

4) Mortgage free

Recent research from the new Centre for Personal Finance Education revealed some pretty harsh truths about what living off New Zealand Superannuation affords you. What was alarming was that the budgets, for the no-frills lifestyle (which was pretty bare bones) didn't even factor in rent or mortgages. Becoming mortgage free before you retire will buy you considerable breathing room. 

More reflection on that theme here via thefrugalpath.com

5) Two to one and back again

Personal finance is not a static affair. Like life, you are constantly having to make adjustments, review and fine tune. What's interesting though is we often get stuck in a pattern of thinking where we allow circumstances to dictate our financial situation without thinking outside the box.

The following, from frugalconfessions.com (don't you love all these names), looks at the importance of reviewing to adjust for life changes.

Bonus: 

I had an interesting interview today with Radio Dunedin who are giving away a copy of my book. Here's the link if you're keen to enter your name in the draw.

To read other Take Fives by Amanda Morrall click here. You can also follow Amanda on Twitter @amandamorrall or at www.amandamorrall.com

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4 Comments

A few factors, some special people, have enhanced my rosy outlook
 

You're welcome ;-)

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Ha ha ha ha ha ha.

 

Smooth move Flanders.

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LOL come on, who else could it be???

 

;-)

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#2 I'd have to question anything that comes out of Zerohedge as 'immutable'. Especially when you consider point (2)...

It is always surprises me when I council people

Really? You want to take financial advice from someone who doesn't understand the differerence between council and counsel? Just because it's Valentines Day today that is no excuse for incorrect grammar (Grammar Nazi moment over, now mounting personal high horse) ....

#9 Who still buys Lotto tickets??? Happy people don't buy Lotto tickets! Lotto is a Stupidity Tax. Case in point:- sales of tickets go up as the prize rolls over - the more it rolls over the more ticket sales go up. So you have to ask, why would people buy tickets knowing that the more people play the less chance they have of winning. And even if they do win, there will be a greater chance of having to share that prize with other winners?

And why do people buy more tickets when the Lotto is $20 million instead of 1-2 million??? Is one or two million not enough for you?? Only 20 million will do???

Immutable Law of Money #11. People who buy Lotto will never be well off.

(Lotto High Horse moment over).

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