What money lessons could you learn from John Key? Double your salary with low effort.

What money lessons could you learn from John Key?

With an illustrious foreign exchange career and accumulating personal wealth, John Key has learned some valuable investment lessons.

“In general, in areas where I did not fully understand the risks, they could not quantify the risks or make rash decisions,” he says.

His advice to kiwis is to take no risk if you can not afford to lose your investment.

“The hardest financial decision I had to make is to sell an investment when it lost money, it’s always easier to make a profit, and it’s much harder to crystallize losses.

“You need to realize that sometimes, with all your best intentions, you misunderstand things – if you do not understand why an asset performs so poorly, you better stop reassessing it from a position of calm and neutrality.”

Good research is the key to successful investment, he says. “If you are not sure that you fully understand the information, you should seek professional advice, and even if you cost money, you can save money in the long term.”

 

Set goals and prioritize

Keys father died when he was a child, and he was raised by a single parent in a Christchurch state house. As a boy, he decided to become a millionaire.

“I grew up with limited financial resources, which is why I’ve always recognized the importance of financial security and I highly valued it, which gave me the natural ambition to have what I thought was more than enough money.”

He worked hard at school and his early interest in money meant he shared an economic prize.

During school holidays he worked for an accountant and graduated with a Bachelor of Commerce. He tried accounting before coming to Canterbury International and asking for a job.

“I set out to achieve my goals by making sure I got the education I needed to have a job that paid me well.”

Then he saw what currency traders were doing and knew that this would be his next career move. He worked as a dealer for Elders Merchant Finance. “I was willing to take some risks with my career and go to areas where I thought I was well paid.”

Key’s reputation as a Forex trader grew rapidly. He moved from Christchurch and London to Auckland.

 

PAY THE HEARING, HAVE A HOUSEHOLD

“In a position where our income was relatively high, my wife Bronagh and I were relatively conservative and rescued, and we repaid our mortgage as soon as possible,” he says.

And that’s his advice on kiwis. “Paying your mortgage as soon as possible Buying a property is an important step as it is usually the biggest asset of most people.”

Key now owns an impressive home in Parnell and a beach house in Omaha.

He says having a budget and clinging to it are tips he and Bronagh followed in their early married life.

“Make your budget realistic, so there’s some money for treats and nice things, otherwise you’ll never stick to the plan – if you save a small amount each week to save it, put it somewhere.”

For those of us who are not millionaires, the former prime minister says KiwiSaver is the answer to a better retirement.

Because of the nature of KiwiSaver, in which both your employer and the government make a contribution, KiwiSaver achieves the highest return that most people will make. ”

The former prime minister gives some practical tips for kiwi investors.

History tells us that most people do not diversify their investments sufficiently, Key says. “It’s the old story: do not put all your eggs in one basket, most of them are housing, and that can be reasonably viable as well as a realistic option, because it announces a series of boxes.”

However, diversifying your investment is a good strategy, be it through KiwiSaver or other financial investments, he says. “The evidence shows that diversified portfolios are less risky and likely to deliver better returns over the longer term.”

 

KNOW WHEN YOU FINISH AN INVESTMENT

Key is a multi-millionaire, and he certainly understands the investment landscape. But he has made investments in the past and understands the reasons.

 

Read more about John Key biography
early life and career

Key was the son of an English father and a Jewish mother who fled Austria in 1939 to Britain. The couple married in 1948 and emigrated to New Zealand, eventually settling in Auckland. When Keys father died in 1969, the family moved to Christchurch, where she lived in a state-owned rental house, and Keys mother worked as a night porter and cleaning lady to repay the accumulated debts. Key has done well at Burnside High School, where he has excelled through lectures, debates and economics. He later studied accounting at the University of Canterbury, where he graduated in 1983 with a degree in commerce, a year before his marriage to classmate Bronough Irene Dougan.

 

After British Prime Minister David Lange’s British Labor government eased exchange controls on the New Zealand dollar in 1984/87, Key quit his job at a sports apparel garment manufacturer and took up a position as a Forex trader in Wellington for Elders Merchant Finance of Australia. In 1988 he was lured to the newly founded Bankers Trust in Auckland. From 1995, Key worked for US investment bankers Merrill Lynch in Singapore, London and Sydney, assuming responsibility for various business units, notably international currency trading and European bond and derivatives trading. He developed a reputation as an intelligent risk-bearer and joined the Federal Reserve Bank’s Foreign Exchange Committee in New York in 1999. He completed management studies at Harvard University.

 

In 2001, Key returned to New Zealand to stand for the National Party for parliament. The following year he won the seat of Helensville (Auckland) by a narrow margin of 1,589 votes. three years later, he retained his seat with a majority of 12,778. In November 2006, Key, the then party spokesman for finance, was elected as the successor to national leader Don Brash. Key revived the party with a new focus on education and reduced taxes. In the parliamentary elections in New Zealand on November 8, 2008, the National Party took 59 of the 122 seats, and eleven days later, Key was sworn in as prime minister.

 

Premier Ministry

Key ruled the country in difficult times in response to the global economic downturn that began shortly after he took office and confronted the New Zealanders with a tragedy and loss caused by the 2010-2011 Christchurch earthquake. In November 2011, he received a second term as Prime Minister, when the National Party won an historic victory in the parliamentary elections and received 48 percent of the votes (the highest number of votes since the introduction of proportional representation of mixed members in Europe 1996) and 60 seats in the House of Representatives (Houses of Parliament).

 

Much time and treasure has been invested in the earthquake recovery effort, which Key identified in 2013 as “the largest commercial enterprise in the history of New Zealand.” This represented almost 20 percent of the country’s annual GDP. Earthquakes and aftershocks to a magnitude of 6.6 shook the country again in 2013, this time under the Cook Strait, but caused only superficial damage in Wellington, although in the small southern island community of Seddon several apartments were destroyed.

Under the leadership of British Minister and Finance Minister Bill English, New Zealand experienced a robust economic recovery following the 2008-09 international financial crisis. By 2014, New Zealand was one of the first industrialized countries to return to normal development after the global crisis. Mainly because of this success, the National Party won 60 seats in the House of Representatives under the mixed-member proportional representation system in the 2014 general election and returned Key for a third term as prime minister after the government won the government’s support of the Maori party (2 seats) and ACT New Zealand and United Future (1 each). The victory of the National Party was related to its Megaupload website due to copyright infringement despite the political consequences that they had experienced in the attempted delivery of the US-born Internet entrepreneur Kim Dotcom – permanent resident of New Zealand since November 2010 , The case was delayed by a government investigation into alleged New Zealand espionage by Dotcom by New Zealand security services.

 

In the meantime, Key and his family visited British Queen Elizabeth II in September 2013 at Balmoral Castle. Later that month, in a speech to the United Nations General Assembly (UN), Key demanded the reform of various UN bodies, including the Security Council. He said they were “hostages against their own traditions and the interests of the most powerful” and damaged them The reputation and credibility of the UN itself In November 2014, Key Chancellor Angela Merkel and the Chinese president organized state visits to New Zealand. Xi Jinping.

 

During the election campaign in 2014, Key promised to hold a national referendum on choosing a new flag instead of keeping the old one. After a two-year search for a new design, a referendum followed in March 2016 and voters chose the pre-existing national flag, the Union Jack, which marked the flag of the United Kingdom. Key identified the failure to replace that flag as one of his great disappointments when he surprised New Zealanders in early December by announcing that he intended to step down as party leader and prime minister with effect from December 12. He said he had “given everything” According to Job, Key said he wanted to spend more time with his family and did not believe he could commit “much longer than the next election”. Key retained his place until shortly before the 2017 legislature elections, in order not to cause a by-election for that seat.

 

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