Nine Things to do to get Your Personal Finances in Order Nine Things to do to get Your Personal Finances in Order Contact Us 5. Set financial goals and save for them. Most people have dreams and goals. Problem is we don't plan a strategy to achieve them. Rather than saving for things like a new car or overseas trip, we go into debt to pay for them. Set goals, price how much those goals will cost, work out how much you need to save per month to save that amount, and go for it! 6. Protect what you've got. We all struggle with the "I" word = Insurance. If we never make a claim insurance can seem like money thrown away. Many people have fallen into a lifetime of debt because of inadequate insurance. Here's the general rule of thumb - anything you need but cannot afford to replace with cash if you lost it should be insured. This includes your ability to earn money. (Futurisk give free no-obligation insurance consultations; contact us to make an appointment). 7. Make a financial plan for retirement. People often ask, "When is the best time to save for retirement?" The answer is "now." There are two basic mistakes people make; the first is that they leave it too late to begin saving for their retirement. The second is that they assume their family home is an adequate investment for their retirement when it is only part of what they will actually require. A great way to save for retirement is through a workplace savings scheme, especially if your employer will make a contribution too. And, whatever your age, a great time to start is now. 8. Invest! Make your money work for you. There are many ways to invest other than property or the share market. We all need to determine which is best for us. Simply leaving money idle in the bank, however safe and secure it may be, is not maximising the earning potential of those savings. 9. Teach your kids about money. There is a definite lack in our school system as regards the teaching of basic personal financial management. Teach your children about budgeting, saving for things they want, how to write cheques and use internet banking, the true value of the things we buy etc. It'll pay off in the end - maybe they'll help you build a ‘granny-flat' on the back lawn of their mansion!! The team at Futurisk have three rules regarding personal finance: Spend less than you earn Pay off debt Don't go into debt This article expands on those rules - do these nine things and you need never worry about your finances again. 1. Know what you've got and work to increase it. A person's net worth is the value of everything they own minus everything they owe.In other words; assets minus debt. Many people do not know what their net worth is. Some would be surprised at how high it is, others shocked at how low it is. Set goals and plans that will enable you to increase your net worth. Decide on a figure that you would like to achieve in the next ten years and work out how you can achieve it. I think you might be surprised how much you could increase your net worth over a decade if you just start now and keep at it. 2. Budget! In New Zealand today the average person is spending 17% more than they earn, and that does NOT include mortgages (Dept of Statistics figure) - that means they are now adding to their net worth, they are going into greater debt. The reason people overspend is because they have not calculated how much money they are able to spend without going into debt. The answer is simple; do whatever you have do to ensure you spend less than you earn. Now, it's difficult to never go into debt but it must be avoided unless absolutely necessary. Borrow only what you absolutely need to, e.g. to buy a house. And, when you borrow money, make sure you know the true cost of borrowing that amount. Once interest payments and fees are added onto a purchase it can make for a very expensive item! 3. Pay off debt. This is one of the fundamental principles of good personal finance; pay off debt as quickly as possible. Start with the debt you're paying the highest interest on. This will usually be credit-card and hire purchase debt followed by personal loans and mortgage debt. Remember, the faster you repay debt the better off you are long-term because it is the interest payments that cripple us financially. Paying just the minimum repayments on your debt means you pay thousands of dollars in unnecessary interest. 4. Save for an emergency fund. The killer for the personal finances of many people comes when their washing machine dies or their car breaks down or some other unexpected crisis arises. With no savings we often go into debt that can that haunt us for a long time. Having savings equivalent to three month's income can overcome such an eventuality. NOTE: this is a good thing to do even if you are paying off a mortgage. However, if you have high-interest debt, pay that off first. View next post At Futurisk, we work for you, not the insurer. So when it’s time to make a claim, we’ve got your back. We’ve got your back Enquire Now Freephone 0800 17 18 19

Top tips for keeping your house warm this winter Top tips for keeping your house warm this winter Contact Us Opening the curtains during the day is also a good idea. We often think that open curtains during daylight hour means losing all your precious heat during the day, but opening the curtains makes the most of the sun - the most effective and affordable heater known to man. Just make sure you remember to close them when the sun goes down. Closing unused rooms is another effective method to prevent your precious heat being wasted. If you're not intending to use certain rooms for the rest of the day, close the doors. That way your heat stays where you want it to be. Bear floor boards are a welcome invitation for the cold, and account for as much as 10 percent of heat loss. Wooden floors are the worst for leaking heat, but this can be prevented, or at least minimised, by placing rugs and blankets over the floor. This also has the added bonus of keeping your feet warmer too. If you're keen to know how you can further prevent heat loss in your home, get up and walk around on a cold evening. Are there drafts coming from outside? From beneath doors? From between the floorboards? Have a think about what you could do to keep your house warmer this winter without splashing the cash! Reference NZFSG Keeping your house warm over winter can be hard. It can cost a small fortune to generate enough heat to get your house warm, and then there are so many ways for cold air to take its place. Luckily there are some affordable and simple ways to keep your house warm this winter that don't require a big budget or a degree in rocket science. Thick curtains are great for trapping your heat inside, and curtains with thermal lining are even better. But if you have only got standard curtains in the house, there are a couple of tricks you can use to maximize their heat retention. Thermal lining can be expensive, but other materials, such as cheap fleece, can be almost as effective. Just line the backs of your curtains with some fleece from your local fabric shop, and you'll be able to see the difference. In fact, you can even use an old PVC shower curtain to do the same thing. And it's not just the windows that need to be covered. Doors are notorious for leaking heat, so putting a curtain over your door might be a good idea too. And why not put a rug or folded towel at the foot of the door to stop your precious heat leaving the room. View next post At Futurisk, we work for you, not the insurer. So when it’s time to make a claim, we’ve got your back. We’ve got your back Enquire Now Freephone 0800 17 18 19

How to Navigate New Zealand’s Changing Investment Markets. How to Navigate New Zealand’s Changing Investment Markets. Contact Us Equity Market Outlook The NZX 50 index has had some ups and downs lately — you’ve probably noticed your KiwiSaver and other investments dipped slightly in the first quarter of this year. The outlook remains positive, however, and you will have also noticed that, in the past month or two, your investments have started to pick up again. With interest rates coming down, shares are becoming more attractive to investors, and company profits are expected to improve as the economy continues to recover later in 2025. This is good news for investors so keep your eye on your investments. Government Initiatives to Attract Investment A further encouragement for investors is the policies that the government has implemented to attract foreign investment. These include easing 'golden visa' requirements and positioning New Zealand as a 'safe harbour' for investors amidst global economic volatility and uncertainty. Globally, New Zealand is perceived as a socially cohesive, safe, and stable nation which has revitalised the economy and bolster investor confidence. Conclusion So, it’s true that recent shifts in New Zealand's investment markets have caused concern for many. However, the underlying economic indicators and proactive government policies suggest a trajectory towards recovery. At Futurisk, we advise investors to stay informed and, as is always the case with investment funds, maintain a long-term perspective, because the current financial environment presents numerous opportunities for growth and resilience. If you have any questions or concerns about your KiwiSaver or other investments, please give your Futurisk Financial Adviser a call. Caution, not panic is the key. New Zealand's investment markets have experienced notable shifts in the opening months of 2025. Many of these shifts have been as a result of overseas events which are out of our control, such as changes of governments, inter-nation conflicts and changes to international trading conditions. It’s natural that such changes will lead to some investor concern but there’s no need to panic. In fact, at Futurisk, we believe there are real reasons for cautious optimism. Economic Recovery Underway 2024 was a challenging year. Phrases like “looming recession” made many of us nervous and we watched with concern as our investment savings dipped a little. As we progress through 2025, however, the country’s economy is showing definite signs of recovery. In the fourth quarter of 2024, GDP grew by 0.7%, surpassing expectations, with projections indicating growth of 1.4% in 2025 and an acceleration to 2.7% in 2026. On top of this, the Reserve Bank reduced the Official Cash Rate to 3.75% with the aim of stimulating economic activity. View next post At Futurisk, we work for you, not the insurer. So when it’s time to make a claim, we’ve got your back. We’ve got your back Enquire Now Freephone 0800 17 18 19

Frequently asked questions when buying a home Frequently asked questions when buying a home Contact Us Should I get an appraisal? Yes. An appraisal is an opinion of the value of the property you are planning to purchase. It's one of the requirements needed to apply for a home loan. Should I pay for a home inspection to check the house? Yes. It is a must to have a professional house inspector check the house first before you decide to buy to get your money's worth. We all want some peace of mind when buying something important like buying a house. Should I use an Agent to buy a house? Yes and No. Yes, because an agent can help you with finding a home that will suit you by giving you a list of available homes within your price range and can also give you some information about the housing market. However, be careful to choose by comparing background, experience and agencies. Or you can ask someone you can trust. No, if you want to do it personally and are ready to take on some house shopping yourself. Should I go directly to the bank or other mortgage lenders to borrow? You can go directly to your bank and ask about their mortgage lending criteria. Or you can let us help you by getting the best offer without the hassles of going through the all the rudiments of getting a home loan. How much can I afford? The answer to this depends on your income and your liabilities (debt). Ideally, most home buyers purchase a house that costs between 1 ½ to 2 ½ times their annual income. However sometimes, there are no houses available in your ideal price range. If this is the case, you may need to spend a bit more. Just keep in mind that your monthly mortgage repayment can't exceed 29% of your gross monthly income and your total debt payments (mortgage payments, car payments, credit cards and hire purchases) can't exceed 40% of your gross monthly income. How much can I borrow? It depends on a number of factors and these may include: The value of the home Your income and your ability to repay the mortgage How much you have saved towards your deposit If you are eligible for a First Home Loan Type of home you are planning to purchase How much should I offer for a house? Each property is unique on its own and the ideal offer will depend on how the buyer perceives the value of the property. If a particular house is overpriced an offer below the listing price would be appropriate. If it's just within the ideal price range, an offer at the asking price or just below the listing price will be fine and if it's priced below the actual value, then you are in for a good bargain (get it while you can soonest!). View next post At Futurisk, we work for you, not the insurer. So when it’s time to make a claim, we’ve got your back. We’ve got your back Enquire Now Freephone 0800 17 18 19

Futurisk's Hot Tips for Saving Money on your Insurances Futurisk's Hot Tips for Saving Money on your Insurances Contact Us 4. Increase your excess. For most insurances (not life insurance), you will almost always have to pay an excess when you make a claim. By agreeing to pay a little more if and when you make a claim you can often get a discount on your insurance premiums. The one thing to be careful of is that whatever the excess is, you are able to meet that amount should you have to make a claim. 5. Work out the best way to make your payments. Insurance companies will often give a discount if you pay your insurance premiums in a yearly lump sum. That suits some people while others may prefer weekly or monthly payments. You need to do what is best for you. One thing is for sure though; there are savings to be made if you can pay annually. By the way, if you pay yearly it is good to spread the renewal dates for insurances throughout the year. If they all come due in one month it can be quite a stretch financially. 6. Review your insurances regularly. I can say with a degree of certainty that most people, if they haven't reviewed their insurances in the last three years or so, can save money by getting new quotes and reinsuring. It's worth taking an hour or so occasionally to contact a few insurance companies and ask for quotes on your insurance needs, in particular, vehicle, house, and contents insurance. 7. Go with one company. Many insurance companies will give generous discounts if you place all your vehicle, house, and contents insurances with them. When you buy an insurance policy, make sure you ask the question, "What discount will you give me if I put all my policies with your company?" 8. Use an expert! There is nothing like an expert to define what you require and discover where the best price can be found. Find a broker you can trust and get him/her to regularly review your insurances. If we were buying a new appliance or vehicle, we'd shop around. If we wanted some new computer gear or were renovating our kitchen, we'd look for the best deal. So why don't we do that with insurance? It seems many New Zealanders think of insurance as coming in a fixed package at a fixed price, but there are some practical things you can do to save money on your insurances. Here are six hot tips. 1. Work out what you need. Insurance premiums are calculated on the value of what you insure, so the higher the value, the higher the insurance premiums. To insure something for more than what it's worth means you are throwing away money every month. Whether it's for your life, car, home, contents or something else, work out what you want insured and how much it is worth. Don't be one of those people who waste money by over-insuring and so paying premiums that are higher than they need be. Also be careful not to risk a financial crisis by under-insuring and receiving money that doesn't cover the loss of an item. 2. Get quotes. If you are arranging your own insurance, get quotes from a few different companies. Especially for vehicle and house and contents insurance - the cost can vary greatly from company to company. One good way to know if you are getting a good deal is to work through a broker. They have usually sourced the best deals and may even be able to offer discounts because of the number of deals they put through. Remember though, the cheapest price may not equate to the best deal. That's where tip number three comes in. Read on.... 3. Make sure you know what you're buying. View next post At Futurisk, we work for you, not the insurer. So when it’s time to make a claim, we’ve got your back. We’ve got your back Enquire Now Freephone 0800 17 18 19

How important is third party car insurance How important is third party car insurance Contact Us Should third party car insurance be compulsory? The Government seems to be weakening on this issue. Some politicians are saying they want to see compulsory third party insurance on cars, and most New Zealanders agree with them. What many people don't realise is how inexpensive third-party insurance can be to buy and how expensive having no insurance can be in the event of an accident. I think our family's story should be a warning to every car owner; you may think you'll never have an accident of any sort, but they happen, and when they do, they can be very expensive. Insure your car and avoid debt! If you have a vehicle, insurance is vital. Remember, when you insure something such as a car, it is not the car you are insuring. You are insuring yourself so that, if you cause damage with that car you will not be placed under the pressure of a debt you may never be able to escape from. Vehicle insurance is not about insuring your car - it's about insuring yourself against a lifetime of debt! If you are uninsured because you find it too expensive, phone an insurer and ask for a third-party insurance quote - it's worth it for your own peace of mind. For years people have been writing letters to the editors of newspapers and phoning talkback saying that third party car insurance should be compulsory. We're not going to go into answering that question here, but one thing we do know for sure; if you're driving your car without at least third party insurance, you are crazy!! A lesson learned Let me tell you a story about our youngest daughter's most horrifying moment. We had an old blue Corolla. Three children had learned to drive in it and they were pretty good drivers. It was an old car, but it was a good car. Mechanically, it went well and there was very little evidence of rust. One day our daughter came home, parked the car in the drive and went inside. Minutes later, she heard a crash. She'd forgotten to put the handbrake on! The car had rolled backwards and into our neighbour's house. Amazingly, there was very little damage to the car. However, the house didn't fare so well. The car was now sitting in the front bedroom. The cost to repair the house was $27,000! As I talked with our daughter about this I pointed out, "If you didn't have insurance, you would be paying that off at $100 a week for the next five years." What is third party car insurance? Third party car insurance is insurance you take out to repair or replace any damage you do with your vehicle, it doesn't cover damage to your own vehicle. There are two types of third-party insurance; Basic third party insurance insures the damage you may cause to another person's vehicle or property with the insured car. Third-party fire and theft is slightly more expensive and insures damage to other vehicles, and to yours if your car if it is damaged by fire or stolen. So, while your car isn't covered, any damage your car causes is. That makes third party car insurance ideal for cheaper cars. The Corolla I told you about was only worth $1,000. To insure it was going to be about $500 a year because of the age of our children. Third party insurance, however, was only $150 a year - and it was worth every cent for our family. View next post At Futurisk, we work for you, not the insurer. So when it’s time to make a claim, we’ve got your back. We’ve got your back Enquire Now Freephone 0800 17 18 19

Refinancing, Refixing, or Restructuring Your Home Loan? Refinancing, Refixing, or Restructuring Your Home Loan? Contact Us The right structure can save you thousands The way your home loan is structured can make a huge difference to the amount of interest you pay over time. When structuring a home loan thought needs to be given to: The mix of fixed and floating rates. The length of your fixed terms. Whether or not you would benefit from have a revolving credit facility. Your stage of life and your financial goals. Despite these considerations, many homeowners stick with the same setup year after year, unaware of the potential savings a smarter structure could bring. That’s why it makes sense to let your Futurisk mortgage adviser help you reassess your mortgage structure in light of current rates, lifestyle changes, and financial goals. Peace of mind in uncertain times Finally, a mortgage is the biggest financial commitment most of us will ever make. Let’s face it, even an average sized mortgage is a lot of money. It’s no wonder some people feel overwhelmed. Getting professional advice from your Futurisk adviser will give you confidence that you’re making informed decisions. If you’re about to refix or restructure your home loan, or if you or someone you know is about to take out a new home loan, get the best advice you can – talk to your Futurisk qualified mortgage adviser. Good Advice Matters Good news! Interest rates are finally starting to ease. That means, many Kiwi mortgage-holders are asking whether now is the right time to restructure, re-fix, or refinance their home loans. While lower rates can offer the opportunity to reduce your monthly repayments or pay off your mortgage faster, navigating the options isn’t always straightforward. That’s where good advice from your Futurisk mortgage adviser can make all the difference. Here’s why good mortgage advice is essential: Every mortgage is different Home loans aren’t all the same. That’s because, when setting up a loan, your current financial situation, your long-term goals, and the structure of your existing loan(s) are all taken into account to ensure the best move for the next period of your life. But situations change as we go through various life stages. Depending on your current situation, it may make sense to break your fixed-term mortgage and lock in a lower rate. However, not always. Breaking a loan early can trigger costly break fees that outweigh the savings. You Futurisk mortgage adviser will help you calculate the real costs and benefits, and tailor a strategy that fits your situation—not just for now, but for the years ahead. Timing is everything The Reserve Bank signalling a lowering of the OCR (Official Cash Rate), is good news and we would expect interest rates to gradually trend downwards. During times of adjustment in interest rates, banks move independently and those movements can be unpredictable. So, when should you refix or restructure your loan? The temptation is always to grab a lower interest rate as soon as you see one. However, fixing too soon or for too long can mean missing out on later interest rate decreases. Your Futurisk mortgage adviser will track market trends, explain what’s likely to happen next (although there are never any certainties), and help you strike the right balance between risk and opportunity. View next post At Futurisk, we work for you, not the insurer. So when it’s time to make a claim, we’ve got your back. We’ve got your back Enquire Now Freephone 0800 17 18 19

How to decide before you buy something How to decide before you buy something Contact Us THREE: What will this item really cost me? If ever you decide to buy something on credit, the first question you should ask it this: "What will this actually cost me?" Recently I saw a lap-top that I'd quite like. It cost around $1,000. But there was a deal - the store said I could have it for just $10 a week spread over three years. $10 a week didn't seem much, until I worked it out. Spread over three years, $10 a week is a lot more than $1,000 - it's $1,560! You see what I mean? It wasn't such a great deal after all. I was paying one and a half times what the lap-top would have cost if I paid cash. Avoid purchasing anything on credit, but if you do, calculate the actual cost of the item - it may make you change your mind! FOUR: What can't I have if I buy this? We all have a limited amount of money to spend. That means, when we spend money on one item, we have to go without something else. So, before you buy anything ask yourself, "What is it that I won't be able to afford to buy?" Then ask which of those items you'd rather have. Remember this, if we buy a luxury item with cash, but then have to put our weekly groceries or petrol on our credit card, we have, in effect, gone into debt for that luxury item. FIVE: Will buying this item blow my budget? This question is like a summary question of the previous four. Living without a budget is dangerous for our personal finances. But a budget is only worth anything if we stick to it. So, if you don't have the available money to buy that treat, put off buying it until you do, it could save a lot of heartache in the long term. If you'd like any advice on your personal or business finances, contact the team at Futurisk. "Your money is burning a hole in your pocket." That's a phrase my mother used to use. It's another way of saying, sometimes we just feel like buying something! And, we've all felt like that at some time or another. We're down at the mall and we see something we'd like. We say to ourselves, "I've got to have that, and it only costs..." The reality is this, every time we purchase anything it impinges on our future lifestyle and living standard. That's why we need to pause and ask ourselves a few searching questions before we pull out our eft-pos card. Here's Futurisk's five questions to ask before you buy anything: ONE: Do I really need this? Impulse buying can quickly lead to regret, especially when a credit card is used. While there's nothing wrong with buying the occasional luxury, we need to ensure those purchases are within our budget. The best thing to do is set aside some money for those treat-type items, and stick to your budget no matter what! TWO: If I buy this, will I go into debt? The answer to this question is always, "yes," unless you're buying with cash, eft-pos or debit card, or you can clear your credit card before the next due date. New Zealand is facing a debt crisis and this is the number one way ordinary New Zealanders get themselves into trouble with their personal finances;we overspend on our credit cards. It only takes a small luxury here and another small one there, and before you know it - you're struggling to repay your credit card debt. The simple rule is - avoid going into debt View next post At Futurisk, we work for you, not the insurer. So when it’s time to make a claim, we’ve got your back. We’ve got your back Enquire Now Freephone 0800 17 18 19

Insurances You Can’t Live Without – General Insurance Insurances You Can’t Live Without – General Insurance Contact Us Insuring the things you own – contents insurance. While house insurance covers the actual building you live in, Contents Insurance covers the possessions within that building. Usually it’ll also cover those possessions while they’re temporarily out of your home (but not while they’re overseas). Most insurance companies separate Home Insurance and Contents Insurance into two separate policies and will give a discount if you take out both with them. There are two simple mistakes people can make with Contents Insurance policies. The first is to be under insured. The average New Zealander has their home contents insured for around $50,000. The average value of contents within a home in New Zealand is nearer $100,000. That may seem a lot, but take a walk around your home and begin to total up the value of everything you own—from your television to your computer, bedroom furniture, curtains, tools in your garage… it all adds up. The second mistake is to not read and understand your Contents Insurance policy before signing up for it. Many people assume they have a comprehensive policy only to find, at claim time, that it’s quite basic with many things not covered. Insuring your vehicle. To drive without car insurance is very unwise. It has caused many people to fall into debt that becomes very difficult to get out of. There are two main types of car insurance: The first is third party insurance. This is the most basic of policies and will cover any accidental damage you cause to another person’s vehicle or property, but does not cover damage to your own car. The second is comprehensive or full cover vehicle insurance. This covers damage to both your car, and any other vehicles or property you might accidentally damage. Full cover Vehicle Insurance is more expensive than a third party insurance policy, but, unless you can afford to replace or go without your car while, you save for a replacement, you should purchase full vehicle insurance cover. In all of this, remember that insurance is an essential part of your personal finances. Without it you can find yourself in debt; and once in debt, it can be very difficult to escape it. Sometimes it’s easy to feel like insurance is a waste of money, particularly if we’ve never made a claim. Before you get to thinking this way, however, remind yourself what insurance is for. When we purchase insurance, we’re purchasing a product. It’s like when we pay for groceries or petrol or a new television. In the case of insurance, we’re buying protection for our assets and for our financial future. A simple fact of life is this, unfortunate things happen. These things happen when we least expect them, and often catch us completely by surprise. In New Zealand today, one of the most common ways people fall into debt is through the unexpected need to replace a lost or damaged asset that was not insured. Here’s a general rule to bear in mind: anything you need for day to day living, which you could not replace with cash if you lost it, needs to be insured. In general, that boils down to three things: your home, your house contents, and your vehicle. Insuring your home – house insurance. House insurance—everyone has it, right? No. Not everyone does have their home insured. Following the Christchurch earthquakes it was discovered that around 15% of people were not insured and almost half of the homes that were severely damaged, were underinsured. You never know when your home will be damaged or how. Insuring your house: Following the Christchurch earthquakes, insurers have revised their method of assessing a home’s worth. For many years, insurance companies have used a formula based on size, improvements, building materials, etc. to calculate the cost of rebuilding a property. This is about to change. From this year, homeowners will have to state the amount they wish their home to be insured for, and the premiums will be set accordingly. This is good in one sense because it means you will receive the amount of money required to rebuild your home—provided you have insured your home for the proper amount. This new assessment method means you may require a valuation on your home to determine its replacement cost. View next post At Futurisk, we work for you, not the insurer. So when it’s time to make a claim, we’ve got your back. We’ve got your back Enquire Now Freephone 0800 17 18 19

Six Credit Card Traps to avoid Six Credit Card Traps to avoid Contact Us 4. Missing payments Be careful, with some credit cards, if the bank does not get full payment the day it is due or before you will be charged interest in the full balance. The best way to ensue this does not happen is to arrange to have your credit card bill paid monthly by direct debit or internet banking, that way you never miss a payment. 5. Purchasing goods overseas When you use your credit card overseas you will usually incur two fees: the first is the bank's fee. The fee is often associated wit currency conversion and may be called something like a "currency conversion fee." The second fee is charged by the credit card company. When combined, thee fees can add up to 3% (perhaps a little more) onto your purchase price. It doesn't seem much, but 3% added onto your overseas trip can become quite a large sum of money. 6. Lodging security Sometimes, when you use your credit card to book overseas travel-related items,you will be charged interest immediately; e.g. if you use your card to book a hotel room for a trip you are to take three months' time, you may be charged interest from the time of booking rather than the time of staying in the hotel. In a similar way, if you rent a car overseas the trader ma reserve an amount of credit to secure their payment or to cover any possible damage to the car etc. That means, you may find when you use the card it has less credit on it than you expected despite you having actually bought anything. Most people know nothing about the lodging security until it's too late. If you are travelling overseas with your credit card, or using it overseas with your credit card, or using it overseas from within New Zealand, it pays to find out first, what the various conditions of use are. So, these are Futurisk's six credit card traps. One thing we cannot stress enough- avoid credit card debt. What if I'm already in debt? If you find yourself struggling with debt right now, contact the team at Futurisk. We may be able to restructure your debt in a way that savs you hundreds, even thousands of dollars. Credit card can be dangerous! Many people in New Zealand today find themselves buried by inescapable debt that can be traced back to being overzealous in the use of their credit card. Sure, credit cards are handy. They provide an easy way to purchase things online or if you don't want to carry cash around with you, but it's so easy to forget when you buy something with your card, you are incurring a debt. And, once you get into credit card debt, it can be very difficult to get out of. That's why the team at Futurisk want to remind you of the six credit card traps you need to watch out for: 1. Extra Credit Every credit card will have a credit limit - that's a maximum amount you can have owing on your credit card at any one time. When you first received your card the issuing bank will told you what credit limit is. As time goes by, the bank will offer to increase this limit for you - particularly if you have been paying your card off each month before the interest payment clicks in. BEWARE: this increased limit will immediately increase the chances of you overspending. That's what the banks are hoping for....to get you into debt so that they can make money off the interest you owe. There was a time when banks didn't even give you a choice about the increased credit, they just put it on your card and called it a, "privilege." The law has changed, however. These days banks should ask if you want the extra credit. If the bank approaches you to ask if you want to increase your credit limit, decline their offer 2. Cash advances Here's something a lot of people don' realise. When you buy goods with your credit card there is usually a one month credit free period, BUT, when you get cash out on your credit card you begin to pay interest immediately. A void using your credit card to et cash out of the bank. 3. Card payment surcharges Have you ever gone to use your credit card and had a vendor tell you it will cost you extra to put purchases on a card? That used to be illegal. These days it's considered acceptable provided the vendor tells you about the surcharge before you use your card. I still think it's a bit on the nose, however, and I refuse to pay such surcharges. Wether you do or not is up to you, but be aware, the surcharge is usually a percentage of the purchase price of our goods. That means, on a large item the surcharge can be quite high and can easily wipe out any saving you thought you were making. View next post At Futurisk, we work for you, not the insurer. So when it’s time to make a claim, we’ve got your back. We’ve got your back Enquire Now Freephone 0800 17 18 19

Do you have an emergency nest egg? Do you have an emergency nest egg? Contact Us Most financial gurus and advisers these days recommend having a separate account that’s just for emergencies, and they’re not hard to set up. In fact, most banks will let you do it online. Just log in to your banking website and create a brand new internet account.But having the account is only half the job – now it just needs some money. Because many people live from pay day to pay day, putting a couple of hundred dollars aside into your emergency account is much easier said than done. Instead, consider starting an automatic payment, so every week or fortnight even as little as $5 is transferred into your emergency account without you having to do anything. $5 doesn't sound like much, but within 10 weeks you’ll have more than enough to put petrol in your car and buy some lunch if your pay doesn't come through. One of the key pieces of advice given about keeping an emergency accounts is to make it a little harder to access than your regular accounts. If you had a card in your wallet that had access to your emergency account, the temptation to spend the money would be too great. Instead, make it so that the only way to access that money is to have to transfer it from the special account into your regular account. So next time you need some emergency cash in a hurry, all you’ll need to do is whip out your smartphone, transfer some money and you’ll be away laughing. Earlier this year this was a glitch with ANZ’s payment system, and a whole lot of New Zealanders woke up on payday to discover they hadn't been paid. It didn't take long for the issue to be resolved, and everyone was paid by lunchtime, but the ANZ Facebook page was still inundated with complaints and tales of tragedy as people claimed they were now starving, cold and unable to put petrol in their car because of ANZ’s mistake. If you woke up on payday and found yourself in this situation, what would your day be like? Would you be going to work hungry because you couldn't afford to buy food for lunch? Would you have to walk to work because you had no money to pay for petrol or a bus? Or would you just transfer a few dollars from your emergency account and go on your merry way? For many, waking up on pay day to find their account empty should be a wake-up call, and one of the best things you can do if you’re scared of ever being in this situation is to create an emergency account. View next post At Futurisk, we work for you, not the insurer. So when it’s time to make a claim, we’ve got your back. We’ve got your back Enquire Now Freephone 0800 17 18 19

Six Things Your Bank Will Never Tell You Six Things Your Bank Will Never Tell You Contact Us 4. Bouncing cheques are good for your bank’s business as long as you don’t write too many. Providing there’s no fraud involved, your bank earns big bucks every time a cheque bounces. Not only do they sock you with a fee for the bounced cheque, you'll pay a higher rate of interest if you go over your agreed overdraft. 5. You can pay your entire credit card bill by setting up a direct debit like you do with your power or phone. Banks don’t actively encourage customers to do this. Why should they? They can’t earn interest on your credit card if you pay it off each month. For the bank, the best credit card is one that has money owing on it. 6. Bank advice may be self-interested. Sometimes, when you use your credit card to book overseas travel-related items,you will be charged interest immediately; e.g. if you use your card to book a hotel room for a trip you are to take three months' time, you may be charged interest from the time of booking rather than the time of staying in the hotel. In a similar way, if you rent a car overseas the trader ma reserve an amount of credit to secure their payment or to cover any possible damage to the car etc. That means, you may find when you use the card it has less credit on it than you expected despite you having actually bought anything. Most people know nothing about the lodging security until it's too late. If you are travelling overseas with your credit card, or using it overseas with your credit card, or using it overseas from within New Zealand, it pays to find out first, what the various conditions of use are. So, these are Futurisk's six credit card traps. One thing we cannot stress enough- avoid credit card debt. What if I'm already in debt? If you find yourself struggling with debt right now, contact the team at Futurisk. We may be able to restructure your debt in a way that savs you hundreds, even thousands of dollars. This information is adapted from Consumer Magazine (January/February 2006, Issue 455, Page 23). There’s something every person who uses a bank needs to understand—a bank is a business. It exists to make a profit and it does that by maximising the use of your hard-earned cash. Knowing how they do that could save you money. Here are six things your bank will never tell you: 1. Your bank wants you to overspend and stay in debt. That may sound a little harsh, but that is the simple reality. You see, banks make money from people who are in debt. In fact, if you are $250,000 in debt you are a better customer for a bank than a person with $30,000 cash in their savings account. The more you spend the more interest the bank earns from you. And, if you’re prone to cheques bouncing, or if you don't pay your credit card bill off in full every month, then you are the bank’s best-friend. 2. A bank’s review of your account is really a sales pitch. The bank is thinking of its bottom line, not yours. If you’re offered a review of your finances or get a call from your “personal banker,” then chances are they want to sell you a new product—usually insurance. It could be that the product on offer is good value, but ask yourself two questions: Do I need the product at all? And, is the bank’s product better than the one I already have or can get elsewhere? 3. Banks prefer to keep their savings-rate changes under wraps. When banks advertise new accounts with flash savings rates, they do so to attract new customers. The banks can’t afford to put their existing customers on these new high-flying rates and they often don't tell you about them. That’s why it pays to ask. View next post At Futurisk, we work for you, not the insurer. So when it’s time to make a claim, we’ve got your back. We’ve got your back Enquire Now Freephone 0800 17 18 19