Troubled financial times are with us.
Our spending power is being rapidly eroded by the relentless increases to rent and property prices, rising inflation and interest rates, as well as the ferocious rising cost of petroleum and commodity prices.
For most people, salaried income does not rise yearly to reflect inflation, let alone to adequately cover the increasing cost of basic expenses.
This reduces individual saving rates.
Unfortunately, New Zealand currently has one of the lowest saving rates amongst the developed countries.
Erosion of financial security can impose stress on emotional and family life, and may adversely impact your health.
The gap between the rich and the rest of society will continue to widen, leading to rising crime rates.
Many, especially those in their 20s and 30s, who live in metropolitan areas where the cost of living is high, are feeling the pinch as life is becoming seemingly harder with little prospect of getting ahead.
Regrettably this may get worse, a main reason being our aging population.
According to Statistics New Zealand, currently around 12% of the population is aged 65 years or over, however this is projected to reach 25% by year 2050.
This will place enormous strain on the government in terms of pension and social welfare provision, and particularly on the already strained health system.
Who will be expected to take on the added economic burden? Those who are still in the workforce! This means in addition to an increasing cost of living, you may need to think about funding your own retirement, because state-funded retirement is struggling to meet demand.
Note that these crises are occurring globally, including Australia and the United States, although New Zealand may be more fragile given the smaller size of its economy.
Ask yourself this, if you lose your current salary due to illness or economic downturn, how long can you maintain your current lifestyle? Is it two weeks, five years or 12 months? If your answer is "not long", or "not sure", then you are swimming naked in the face of a coming financial storm.
The casualties? Your health, your psychological well-being, and your family life - the pillars of true happiness.
It is thus important for everyone to become financially savvy and to get themselves out of bad debts in order to protect and strengthen our economy, in turn improving the psychosocial challenges facing the country.
Our spending power is being rapidly eroded by the relentless increases to rent and property prices, rising inflation and interest rates, as well as the ferocious rising cost of petroleum and commodity prices.
For most people, salaried income does not rise yearly to reflect inflation, let alone to adequately cover the increasing cost of basic expenses.
This reduces individual saving rates.
Unfortunately, New Zealand currently has one of the lowest saving rates amongst the developed countries.
Erosion of financial security can impose stress on emotional and family life, and may adversely impact your health.
The gap between the rich and the rest of society will continue to widen, leading to rising crime rates.
Many, especially those in their 20s and 30s, who live in metropolitan areas where the cost of living is high, are feeling the pinch as life is becoming seemingly harder with little prospect of getting ahead.
Regrettably this may get worse, a main reason being our aging population.
According to Statistics New Zealand, currently around 12% of the population is aged 65 years or over, however this is projected to reach 25% by year 2050.
This will place enormous strain on the government in terms of pension and social welfare provision, and particularly on the already strained health system.
Who will be expected to take on the added economic burden? Those who are still in the workforce! This means in addition to an increasing cost of living, you may need to think about funding your own retirement, because state-funded retirement is struggling to meet demand.
Note that these crises are occurring globally, including Australia and the United States, although New Zealand may be more fragile given the smaller size of its economy.
Ask yourself this, if you lose your current salary due to illness or economic downturn, how long can you maintain your current lifestyle? Is it two weeks, five years or 12 months? If your answer is "not long", or "not sure", then you are swimming naked in the face of a coming financial storm.
The casualties? Your health, your psychological well-being, and your family life - the pillars of true happiness.
It is thus important for everyone to become financially savvy and to get themselves out of bad debts in order to protect and strengthen our economy, in turn improving the psychosocial challenges facing the country.
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