Money – it’s something we strive to collect and we all believe in some way or other that the more we have the happier we’ll be.  Here are some ideas and tips on trying to keep hold of it and achieving your financial goals.

1. Prioritize long-term goals. Saving for retirement should be one of your highest concerns.  Kiwisaver and other superannuation funds offer you the ability to save and save quickly for our retirement.  If you’re not in a super scheme get in to one as soon as you can.  While Kiwisaver schemes are available through lots of different institutions we recommend that you seek the advice of an AFA as to which Kiwisaver is likely to offer you the best return for you.
2. Get on the same page with your significant other. Going over the bills and budget together can end squabbles about money.  Address where the money is spent and be accountable for what is spent where.  Discussing it means that you’re more likely to be aware of where each other is coming from in regards to your financial goals.  
3. Be patient. Save until you have cash for big ticket items like a home theatre system, holiday or even a car.  While that may not always be possible for a car which may be needed in order to get out and earn an income – if you are in the habit of saving for any big ticket items you will be reliant less on credit.  NZ as a society has got in to the frame of mind that we have to borrow to pay for these items when in fact all we have to do is save and wait!  
4. Balance your bank accounts. This helps you start, monitor and stick with a budget.  If you have spent more than you had budgeted for an item you can amend your budget or you have to reign in your spending
5. Keep savings and checking accounts at separate banks. If you don’t see your savings when you log into your more frequently accessed checking account, you won’t be as tempted to tap that money.
6. Issue yourself an envelope filled with your monthly fun money. Once that cash is gone, wait until the next month for the next “fun” expenditures.
7. Have an emergency fund. This is your safety net in case a job loss occurs or a huge expense pops up. (You should also build a fund for smaller irregular expenses like medical prescription costs or appliance repairs.)
8. Talk to your lender or banker. Shop around for better terms on lending.  As you set up a plan to pay off debt, questions may arise. Credit card companies and banks often will agree to better terms or cut fees if asked.  
9. Embrace the power of cash. Paying with paper gives you leverage to negotiate discounts, and your natural reluctance to give up cash can curb frivolous purchases.

This post was written by

Trish Marsden - who has written 5 posts