To achieve financial well-being, meticulously budget your combined $78,000-$86,000 income, prioritizing savings. Explore housing options with a $40,000 deposit for potential homeownership. Diversify investments, create a robust emergency fund, and seek professional advice for personalised financial planning and resilience.
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“My partner and I are working now in Wellington. The salaries are 78000 and 86000. I know it is not that much, but anyway, it’s better than nothing. We also have a small deposit, around 40000, which is really small. Consider our rent with the bill is 2000 to 2200 and other stuff is 1500 to 2000 max. What should we do with the rest of this money? Is our expenditure too much? I am looking for a house now; we are living on 410 dollars weekly, but I hate it as this house is really cold and a bit old in Khandallah, Wellington. I will change it, but I know that will be expensive.”
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It’s great that you’re looking into managing your finances and considering your options. Here are some general suggestions:
Budgeting and Expenses:
Managing your finances begins with a detailed budget. Track all your expenses, including rent, bills, groceries, and miscellaneous costs. With combined salaries of $78,000 and $86,000, you’re in a position to allocate funds wisely. Ensure that a portion of your income goes towards savings for emergencies and future goals. Evaluate your current spending to identify areas where you can cut back, and consider setting a realistic budget that allows for both enjoyment and financial security.
Housing Options:
Given your dissatisfaction with your current rental in Khandallah, Wellington, explore your housing options. While upgrading to a warmer and more comfortable rental is an immediate solution, consider the long-term benefits of homeownership. With a small deposit of $40,000, investigate the feasibility of entering the real estate market in Wellington. Keep in mind the additional costs associated with owning a home, such as maintenance and property taxes. Balancing your desire for comfort with financial prudence is vital.
Savings and Investments:
Prioritise building and maintaining an emergency fund, ideally covering three to six months’ worth of living expenses. Simultaneously, explore investment opportunities to make your money work for you. This could involve contributing to retirement accounts or exploring other investment avenues like stocks or bonds. Diversifying your financial portfolio can provide stability and potential growth over time. In addition, Ensure you have an emergency fund in place. Financial experts often recommend having three to six months’ worth of living expenses saved in case of unexpected events like medical emergencies or job loss.
Professional Guidance and Future Planning:
Consider seeking advice from financial professionals, such as financial advisors or real estate experts. They can offer personalised guidance based on your specific circumstances and goals. Define both short-term and long-term financial objectives, whether it’s saving for a down payment, investing for retirement, or other life events. Regularly reassess your financial plan, adjusting it as needed to accommodate changes in income, expenses, and goals. Striking a balance between enjoying your current lifestyle and securing your financial future is crucial for long-term financial well-being.
Hope this helps.
Regards, Clive Fernandes (Financial Adviser)
Director – National Capital
Disclosure: I am the director of National Capital, a KiwiSaver advice firm. The views expressed in this article are the views of the author. The information provided is of a general nature and is not intended to be personalised financial advice. You may seek appropriate financial advice from a Financial Adviser to suit your individual circumstances or contact National Capital.
