In 2016, Westpac undertook the “Money Week Survey” which highlighted a number of concerns around many New Zealander’s approach to finance. According to the survey results, only one in three Kiwis felt financially secure and five out of six were experiencing financial stress. To help get you onto the path to feeling financially secure, we’ve outlined some of the steps you could take right now.

Draw up a budget

One of the simplest and most effective steps towards gaining financial control is setting a budget: knowing where your money goes and how you spend lets you pinpoint the areas you can cut back on or make changes to spending habits. 

Get out of debt

Once you know where your money is going each month, and you’ve identified areas where you need to change spending habits, it’s time to take control of your debt. Pay off your short-term debt, like credit cards or HP, as soon as you can and avoid impulse spending.

Make saving a habit

If you haven’t already set up an emergency savings fund, now’s the time. Make it the first thing you pay every pay day by having a set amount automatically transferred from your salary or wages into a savings account. Don’t think about it, just make it happen!

Focus on the future

Set yourself some long-term goals and then work out a saving and spending strategy to help you get there. If your long-term goal is to retire without a mortgage, work out how much extra you need to be paying into your mortgage each fortnight or month in order to reach your goal.

Improve your financial situation

Regardless of how financially secure you feel right now, it is possible to make progress and improve your financial situation by making small changes to your spending and saving habits. Here are our tips to help you build a more stable financial future.

• Avoid spending more than you earn – kick the credit card habit and live within your means.
• Sign up for KiwiSaver – make regular contributions and focus on the long-term gains. You’ll be surprised at how quickly you build up a nest egg with employer subsidies and tax credits.
• Get rid of your short-term debt – the sooner you pay this off, the better.
• Put aside a little each month for emergencies – to help cover those unexpected expenses like a new dishwasher or an illness requiring time off work.
• Buy property and pay off your mortgage – it’s your key to long-term wealth. Talk to a Mortgage Express adviser to find out how you can get a foot onto the property ladder.

If you’d like advice around managing your finances and improving your financial health, talk to a Mortgage Express adviser about how we can help you.

References: Survey: Only 1 in 3 Kiwis feel financially secure:

https://www.westpac.co.nz/rednews/lifestyle/survey-only-1-in-3-kiwis-feel-financially-secure/

Disclaimer:

While all care has been taken in the preparation of this publication, no warranty is given as to the accuracy of the information and no responsibility is taken by Mortgage Express Limited for any errors or omissions. This publication does not constitute personalised financial advice. It may not be relevant to individual circumstances. Nothing in this publication is, or should be taken as, an offer, invitation, or recommendation to buy, sell, or retain any investment in or make any deposit with any person. You should seek professional advice before taking any action in relation to the matters dealt within this publication.

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