Not many years ago I paid $0.62 per liter of petrol. Guess the price from yesterday; Believe it I paid more than $2.21! There are similar stories with City Council rates, insurance and of course – the food prices, right? You don’t need to look at the crystal ball to figure out that the cost of living in New Zealand is on the way up so quickly that you won’t find an area with stabile prices. You know 2011 is an election year, very positively reflected in the media – but figure out what happens after the election!

Yes – we understand bad weather for farmers, earthquakes and destructions, oil crisis, etc. Even insurances running out of money, but we also paid over more than 20 years our insurance premiums. Where has all that money gone? The truth is - you can’t change the world economy and the inflation. These are the major price up drivers, but what is the take home message for you?

The message is simple – you can only change what is under your control, right? For those of us who already own something like land, a property, or a business - our living will improve more likely, because we can do something about. For those who haven’t thought about the exposure to price inflation, an investment is now becoming more important as it was before.

If you want to live on higher standards and comfortably in retirement, you will need to consider financial security very seriously. And the best way for most New Zealanders is to own a property. If you treat that property like an investment it will pay you back when cutting costs with DIY like

- maintaining a fruit and vegetable garden

- developing skills for doing repairs cost efficiently, and

- managing home improvements resulting in lower living and energy costs

Yes we know it takes self-control and planning. If you extend your home by adding a granny flat, an additional garage or sleep-out you can create “home and income”, rent it and it will subsidize your lifestyle. Again look at your crystal ball and consider your options to cut expenses or to create additional income. In my case the rain waters my garden, wind creates electricity and my solar panels make the best out of sun. Ask yourself - do I get paid as well?

If not – start now.

Klauster