Living in New Zealand requires prudent financial management. Start with budgeting to track income and expenses, then save automatically for short and long-term goals. Build an emergency fund, tackle high-interest debt, and manage subscriptions wisely. Shopping around and government assistance can also help. Join KiwiSaver for retirement savings and practice spending wisely by prioritizing needs over wants. Remember, personal finance varies, so consult a financial advisor for personalized guidance.
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“Any tips would be much appreciated.”
(Original question on Reddit)
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Living in New Zealand, like anywhere else, requires careful financial management. Here are some tips that might help you get by financially:
Budgeting
Gives you control of your money and your life. It helps you to see how much money you have, what you spend your money on, and think about ways to make your money go further. So, creating a monthly budget that outlines your income and expenses is important. This will help you track your spending and ensure you live within your means.
Saving
Start saving as soon as possible. Set some savings goals for the future – both short and long-term – to help you focus and keep you motivated. It’s easier to save when you don’t have to think about it. So, set up an automatic payment that goes into your savings account every payday.
Emergency Fund
Build an emergency fund to cover unexpected expenses. Aim for at least three to six months’ worth of living expenses in savings. Put this money in a high-interest savings account to earn you some interest without locking it in for a fixed term.
Manage Debt
Pay off high-interest debt as soon as possible. Prioritise credit card debt and loans with the highest interest rates. This way, you can avoid unnecessary interest charges, saving you money you can spend elsewhere.
Managing Subscriptions
Spring-clean your subscriptions and memberships. Check your bank or credit card statements over the past 12 months to catch any recurring fees you may have forgotten. Consider cutting out subscriptions you don’t need, such as Netflix, if you barely use it. Look for ways to cut down on unnecessary expenses.
Shopping Around
If your mobile or broadband plan is up for renewal, check if there’s a better deal from another company. Look out for sales, use coupons, and compare prices when shopping to get a better deal. Also, be mindful of impulse purchases.
KiwiSaver
Join a KiwiSaver retirement savings scheme, including employer and government contributions, making it a valuable retirement savings tool. You can also use KiwiSaver to save up for your first home purchase, making reaching your financial goals easier.
Government Assistance
Check what financial support is available from the Government. If you’re struggling to meet your living costs, Work and Income may be able to help with housing costs, food costs, power, gas, water bills or heating, and school costs, including uniforms, stationery and school fees.
Spend wisely
Avoid overspending and prioritise needs over wants. Cook at home, use public transportation, and look for discounts to reduce living expenses. Over time, this will add significant savings, helping you allocate it towards your financial goals.
In conclusion, financial management is a personal journey, and there’s no one-size-fits-all approach. What works for one person may not work for another due to unique financial circumstances. Therefore, it’s essential to consider these tips as a starting point, but always seek personalised advice from a financial advisor or conduct further research before making significant financial decisions.
Hope this helps.
Regards, Clive Fernandes (Financial Adviser)
Director – National Capital
Disclosure: I am the director of National Capital, a KiwiSaver advice firm. The information in this post is only general in nature and is not personalised financial advice. Please contact us if you want financial advice.
