Money hacks for students

Sensible and satisfying saving goals

Saving more crops up a lot as a New Year resolution, but what should or could you be working towards and how much do you need to save?

The sensible

Emergency fund

It’s a really good idea to have 6-9 months worth of living expenses put aside in case you encounter a hefty unexpected bill or your income is cut for whatever reason. It will take a while to build up that much but anytime is a good time to start.

Retirement savings

The younger you start, the better so boost your Kiwisaver contribution up a % or two. It’s taken out of your pay before you even knew it was there.

First home deposit

It will take a while but you have to start somewhere. Investigate what you’re entitled to through Kiwisaver and the HomeStart grant. Research building over buying; in some areas it can be more cost effective and you can sign up with as low as 5% deposit with some home building companies

Car fund

Every pay, put $20 aside to create a little pool of funds available for when it’s time to get rego, WOF, service and repairs.

The satisfying

Travel

You can do this two ways. Set a destination, plan a trip then save up what you know you need. Or, save a set amount from each pay then when you have $1500 per person, see what the best deals are out there and make a decision based on that.

Wedding

The cost of a wedding depends on what you envisage the day to be and how important it is to you to have it all. Weddings can be very expensive and luxurious or done on a budget. Check out our tips for saving money on your wedding.

Debt-busting NY resolutions

The New Year is a fresh start, time to set a new goal. After health and fitness related resolutions, financial ones are the most popular so here are some you could adopt to help become debt free.

Get unhealthy bad habits under control

Kill two (or three or four!) birds with one stone. Save money by giving unhealthy habits the boot. Stop smoking. Leave the card at home and only take a set cash budget when you go to the pub. And think twice about opting for takeaways.

Prioritise your debts

Make a list of what you owe and the interest rate of each then prioritise one debt for special treatment (eg. paying back more than the minimum). Just remember to also make the minimum payments on all the other ones.

Pay off student loan

Use this calculator to see how much faster you could pay off your loan if you paid more than the minimum.

Increase income or decrease costs

Look at ways to earn extra cash or save on your current costs of living and put this money towards paying off your debt. Likewise if any extra money you weren’t counting on comes your way (from a tax refund perhaps?!) it needs to go straight towards paying off your debt.

Make 2018 the year of the budget

Write down when money comes in and when it’s due to go out. If you want help, seek advice from a budget advisor or other such service.

Manage your time better

This could be as simple as changing your routine to pack a lunch at night or getting up 10 minutes earlier to make it in the morning. Take a little time to plan your groceries by researching what’s on special.

Small challenge ideas

Go one week of strictly buying only what you need.

Aim to have $5 left in your account on the last day before payday.

How to enjoy a debt-free Christmas

It’s one of the most expensive times of year with gifts, food, drink and parties galore! It’s easy to just swipe your credit card and let ‘2018 you’ worry about it. Here are some clever ways to avoid credit card debt over the silly season.

Plan your shopping lists

Whether it’s gifts or groceries for Christmas dinner, people who shop using lists are far less likely to overspend.

Set a budget

A good way to stick to a budget is to take out cash and leave the card at home.

Cash in on rewards points

If you’ve been earning points or rewards on your credit card, use them to knock something off the gift list.

Start early

Spacing out the shopping over a longer period in the lead up to Christmas means you’re only using a little bit from lots of pays rather than a lot from just one or two. It also saves on the stress of trying to find parking. And think about setting up a Christmas savings account for 2018.

Secret Santa

Rather than buying for everyone, as a group draw a name and set a spending limit. Or play the alternative – Greedy Santa. Everyone buys a gift and on the day you draw numbers to see who picks a gift first. Whoever picks next can either choose a new, unopened gift or “steal” one that’s already been opened. This continues until all pressies are open.

Earn more

Look at picking up extra work around this time of year. People always need childcare/babysitting with all the parties happening. How about decluttering? Sell stuff you don’t need in the lead up to Christmas to earn extra coin.

Check out our latest Money Hack for more great gift ideas.

Christmas gift hacks

With so many gifts to buy for Christmas these ideas should help you get the most for your money.

Shop all year round

No matter when you see a great gift for someone, buy it and stash it away. If you haven’t done it this year, remember it for next. Also, keep notes on gift ideas to refer to come shopping time.

Set a budget

And stick to it. Get cash out so you don’t use your card.

Shop online

Keep an eye out for coupons or good deals on discount websites/apps. You can dress up small things like this with a nice envelope and ribbon.

DIY gifts

A quick Pinterest search will return hundreds of ideas but here are some fast and easy faves:

• Edible gifts like truffles or Christmas cookies in a nice box, brownie mix in a jar, or flavour infused oils, salts, butters or vodkas go down a treat.
• Photo books are cheap, easy and personal. Write your own story inside to go with them?
• Bath bombs are easy to make with basic ingredients from the supermarket.
• Put together a fort kit for kids with twine, a flat sheet, some pegs and clamps, and a torch for ambience.

Wrapping hacks

Craft gift bows from old magazines. Use plain brown paper and dress it up with a ribbon or bow or paint it yourself. Upcycle last year’s Christmas cards into gift tags.

Be prepared

Eat a decent breakfast before and take a bottle of water with you. Christmas shopping takes a lot of effort and stopping to buy food to boost your energy is not being smart with your Christmas budget.

Smart ways to save on you wedding

Can money make you happy?

Whoever said money can’t buy happiness doesn’t know how or where to spend it. While we need to take care of basic needs, most of us spend too much on unnecessary purchases that don’t have any long term effects on our happiness.

Spend money on experiences for yourself

Think about the memories associated with spending money on experiences versus buying material possessions.

Remember the anticipation you felt when planning a holiday? Do you experience that same sort of excitement when purchasing new shoes? New shoes quickly become worn out or go out of fashion, but you’ll never forget the memories made visiting Italy for the first time.

Spend money to save time

Consider outsourcing household chores to help achieve a better work-life balance.

Does grocery shopping do your head in? Try a food delivery service like My Food Bag to save you quality time without compromising on delicious, nutritious meals.

Is buying a bigger, nicer home worth it if you’ll be spending more time in traffic, commuting to and from work? Why not look at investing in a smaller property that’s closer to your office.

Spend money on others

Surprise a friend or family member with a gift they weren’t expecting and witness their joy at this unexpected gesture.

Giving money or food to someone who can’t repay you is one of the greatest feelings in the world. Supporting a charity you feel strongly about is a great way to put things in perspective and is guaranteed to make you happier.

How to save money while travelling

It’s time to spring clean your finances!

Spring has sprung, which means it’s time for the annual task of spring cleaning your home. People often forget that their finances need attention as well. While you’re busy deep cleaning nooks and crannies, here are some effective ways to clean up your finances as well:

Throw away old paperwork

That overflowing pile of paperwork on your desk? Spring’s the perfect time to tackle it – whether it needs to be filled out, filed or recycled, get yourself organised and prepared for the new season.

Take a look at your budget

With summer on the horizon, now’s the time to reassess your budget. Take stock of how you’re spending your money; are you on track or is there room for improvement? Take note of any ‘wants’ that have slipped into the ‘needs’ basket. Be honest with yourself, do you need to rein in your expenses? It’s better to catch any issues sooner rather than later.

Re-evaluate your financial goals & priorities

Are you on track to pay off your debts with the current payment plans you have in place? Set aside some time to check in on your finances and make sure your financial goals still make sense. It’s okay to step back and determine a new way forward.

Forecasting

Forecasting involves presenting estimated information based on past, current, and projected financial conditions. It can help you identify future income and expenses that have an immediate (or long-term) effect on your plans and goals. Take seasonal variation into consideration as well. You’ll want to account for summer holidays, time off work and increased spending on gifts and getaways.

Fashion on a budget

We all have to wear clothes and some of us are more passionate about it than others. Here are 9 tips to get the stylish wardrobe you want without draining your account.

Learn what your style is

Trends come and go, real style usually comes when you wear things that look good on you, and when you wear them with confidence. Think about what’s really “you” and you’ll stop wasting money impulse buying what’s not right.

Wardrobe inventory

Try everything on and get rid of what doesn’t fit or look good. Review what you have and make a list of what you truly need.

Sell stuff

As part of this cull, if you have nice things you don’t wear but think others might, sell them and earn some extra cash.

Set an allowance

Decide how much you’re going to allow yourself to spend each pay on clothes and shoes and don’t go over it. If you can’t afford it, layby until next pay.

Shop the classics

A small collection of quality clothes that fit well is much more stylish than a huge wardrobe full of cheap, ill-fitting items. “Classics” are the kind of items that pull your wardrobe together; garments that never stray too far off trend and are easily brought up to “now” with the latest accessories.

Keep the basics, basic

There’s a time and a place for quality. For simple, more casual items, it doesn’t hurt to go cheap. You’ll get more value and wear from ten $10 white t-shirts than a $100 designer version.

A co-ordinated colour palette

A stock of items in complementary tones and colours will be interchangeable with each other, creating many different looks.

Shop online sparingly

Without being able to try things on, it’s risky. Many of us are a bit lazy when it comes to sending back things we don’t want so look for free shipping and the option to return to your local store.

Charity Shops

Not all op-shops are created equal. Try those in the more upscale areas, or go to ones that specialise in pre-loved designer threads. Their stock may still be expensive but for a fraction of the original price you could bag yourself a real classic piece.

How to get fit for free

Gym memberships range from $12-27 per week + joining fees and more for group classes. In reality, you can get fit for free with little to no specialist equipment needed. Do it at home or in the park.

Tools to help you budget

People run budgets for different reasons: to keep track of where their money goes, to help reach a savings goal, or to make sure bills are paid on time. Here are a few tools for keeping a budget.

Excel spreadsheet

How it works

Run dates down the vertical column and list income and expenses next to the day they’re due.

Why it’s good

It’s free and you can see at a glance what bills need to be paid during a pay cycle.

What’s not so good

Because it’s manual data entry, it’s very time consuming to set up and maintain, and there’s a lot of room for human error.

Google Sheets

How it works

Using the monthly budget template, input income and expenses, and list transactions.

Why it’s good

It’s free and reasonably easy to work out. You can access it anywhere as its part of your Google account. It will tell you how much money you have that isn’t needed for expenses and savings.

What’s not so good

Requires manual entry, takes time, room for human error. It also doesn’t alert you to when bills are due.

Sorted.org.nz

How it works

Input your income and expenses (it lists common ones) and it will tell you how much is left over every pay.

Why it’s good

Great for beginners who don’t know where their money goes. Very easy to use and quite thorough.

What’s not so good

It doesn’t tell you when bills are due or help you forecast savings.

PocketSmith

How it works

PocketSmith is really smart personal finance software that allows you to connect with your bank account for a real time view of where your money is going.

Why it’s good

It also allows you to create budgets and offers cash flow projections so you could see how much you could save if you cut spending in a certain area, or how long it might take to save a certain amount.

What’s not so good

You have to pay for it. At $9.99 a month for the Premium package, PocketSmith isn’t super expensive but in the interests of busting debt and saving more, it’s not worth it. There is a free version but it’s rather time consuming as you have to manually upload bank transactions and categorise your purchases before it tells you anything useful. In fact, this is what we found with all the apps/websites we investigated. There are lots out there but you have to pay for the really useful features.

So what is best?

It depends what you want your budget to help you with. If it’s to make sure you pay bills on time, you need something that is calendar based. If you’re just starting out with budgeting and need to learn to track your spending, or have a savings goal in mind, go for something list based with a calculator.

Say goodbye to financial products you should live without

Financial products are things like insurance, warranties and loans. And there are plenty out there that you not only CAN live without, you SHOULD! Many of these can be covered by just being a better saver.

Overdraft

If you need an overdraft it’s because you’re living beyond your means, plus you’re paying extra in fees for the privilege of being in debt! You’d be richer long-term by drawing up a good budget.

Credit Card Cover

If you’re carrying enough credit card debt to warrant spending even more on insurance to cover payments if your income dried up, prioritise getting this paid off quickly.

Funeral Insurance

Being prepared so your family isn’t left with a huge bill is a nice, but this can be achieved through basic saving. Build up a decent emergency fund and make sure you have a will.

Payday Loans

The interest on these is super high. While they’re specifically designed to only get you from one pay to another, you’re losing even more money by taking one out.

Bonus Bonds

Not a great investment; treat them more like a kind of lottery ticket that gives you a chance of winning a million bucks. They’re not bad to have but you’re better off to have just a few and focus on saving.

“Basics” Health Insurance

Pointless. Why give money to an insurer only to have them give it back to you to help pay for minor medical treatments?! Insurance is supposed to be to pay for the things you can’t afford on your own.

Store Warranties

Unnecessary. The Consumer Guarantees Act offers adequate protection be specifying that products should be of acceptable quality and fit for purpose. If something breaks down long before it should (eg, an appliance should be expected to last over 3 years) stores are bound by this law to fix or replace it.

Smartphone Insurance

If you’ve bought a phone you need to insure because you couldn’t afford to replace it, you’ve spent more than you can afford. If you have house and contents insurance, list it under that; just watch your excess though.

Store Cards

This is just a credit card with a shop logo on it and higher interest. Bad deal all round, even if there’s a sweetener introductory discount.

Shifting priorities to pay off debt

How to take advantage of end of season sales

Although you’re saving money compared to if you paid full price, it’s easy to get caught up in the deceptive psychology of it so here are a few tips to help you come out on top:

Set a budget

The savings you’re making are pointless if you still overspend, so have a top end figure in mind before you hit the shops. That way, when you’ve got 10 items you think you want, you can reduce these down to the key things that fit within that number.

Know what you really need

Just because t-shirts are 2 for $10 doesn’t mean you need them. Go through your wardrobe before you shop (maybe clear out the things you don’t wear or that don’t fit) and make a list of things you actually need.

Stick to basic essentials

Sales tend to happen at the end of a season so while you might see something beautiful, you might not get to wear it for another 12 months and by that stage it might be off trend. Stick to the things that won’t be out of fashion by the time next season rolls around.

Patience

Often sales will have several rounds of mark downs so hold out for better deals.

Make sure you can return it

Most end of the season sales are final so make sure you’re sure and that it fits perfectly because there’s no going back.

The best ways to accrue Airpoints

You can earn Airpoints by taking flights and by just going about your everyday business. Here are the top four ways to add to your Airpoints balance the smart way.

Commit to one programme

This is a loyalty scheme after all. Don’t sign up for them all, pick one and dedicate your spending towards it. With Air New Zealand’s Airpoints programme you can use the points/dollars on flights with a number of different airlines as well as in the Airpoints store.

Get a credit card that’s partnered with your airline

Kiwibank and Westpac have the best flight rewards. Just remember the golden rule of credit cards – don’t get one “just because”, and pay it off in full every month! By doing this, you’re earning the points but not paying any interest so it’s almost like you’re getting them for nothing.

Shop with programme partners

You can earn points on things other than flights. Mitre 10, Z, New World, Mercury Energy, Liquorland, Snap Fitness, NZ Post and Farmlands are just some of the retail partners out there. See how much you’ll earn at each retailer using this chart.

Band together for faster rewards

Shairpoints™ means you can combine your Airpoints with up to four friends and/or family to get your next reward faster.

11 things debt-free people do

How come some people manage to get rid of their debt and others never break free? It takes a lot of work to become debt-free but the lessons you’ll learn during the process will stick with you forever. Here are 11 characteristics you’ll find in debt-free people.

1. They’re organised and detail-oriented

Debt-free people know when their bills are due, how much they earn and how much they save. They check their finances regularly and will often keep track of everything using a spreadsheet or similar.

2. They run a budget

And they stick to it. Just because they have money doesn’t mean they spend it willy nilly.

3. They shop around

Coupons, discount vouchers, special deals – debt free people shop around for these things WHEN THEY NEED THEM. They’ll also compare a few different products/places before they purchase.

4. They understand value

Debt-free people spend time considering if a purchase is really worth it before they spend.

5. They’re patient and willing to make sacrifices

If they can’t afford something, they’ll walk away, or wait until they can afford it. If taking on new debt is a must they’ll think long and hard about it first.

6. They’re not materialistic

Money and possessions don’t equate to happiness. Debt-free people simply want for less. They don’t have nothing, but they also haven’t wasted their money on heaps of stuff.

7. They’re future focused

Thinking long term as a habit means making smarter decisions and not falling into the trap of instant gratification.

8. They live on less than they make

Debt-free people will often design their budget to be significantly under what they’re bringing in so there is money for the future.

9. They save

Debt-free people not only have savings, they are part of their budget and it happens automatically every pay.

10. They ask for better deals

Debt free people are always looking for the best deal so they’re not afraid to engage in a bit of haggling to see if they can shave a few dollars off an item or get some free added value.

11. They understand and respect credit

Credit isn’t a bad thing…as long as you use it properly. Debt free people NEVER use credit cards as a substitute for cash. And they always pay the bill off in full every month.

How to save money on a night out

Going out with mates or your partner is fun, but the costs can add up pretty quickly. Here are some ways you can have a good night out without going broke.

Why you should say NO to credit cards!

Credit cards can be great…provided you pay them off in full each month. Paying the minimum amount is a surefire way to inflate the cost of everything you’re putting on your credit card. Even when you pay more than the minimum it’s still costing you.

TIP: If you’re in a cycle of accruing more and more credit card debt, look for a deal where you can switch your credit card for a set period of 0% interest. Work really hard to pay down your debt during this time before the interest kicks back in.

Choosing the best savings account

Looking to open a savings account? There’s a lot of choice out there. Most banks offer a basic savings account with a low interest rate that allows you regular access to your money, and another which offers bonus interest rates to encourage you not to make withdrawals…you are trying to save, after all!

We took a look at what some of the most commonly used banks are offering. Check out the pros and cons of each:

Kiwibank Notice Saver

Pros:

• A great combination of a savings account and a term deposit
• Get better returns than a savings account
• Funds aren’t locked away
• You can keep adding money to it to grow your savings
• 32 Days’ Notice – 2.25% interest p/a
• 90 Days’ Notice – 2.75% interest p/a
• No account management or transaction fees
• Kiwibank was named Canstar’s Bank of the Year for Savings

Cons:

• Minimum deposit of $2000
• Need to give 32 or 90 days notice, depending on which account you’ve chosen

ASB Fastsaver

Pros:

• Great if you have a smaller savings balance, because every dollar earns the same interest rate
• No minimum or maximum balance
• Add to and access your money whenever you like
• Move money between your ASB accounts with no fees

Cons:

• Not a high interest rate though – only 0.10% p/a

ANZ Ready Saver

Pros:

• Gives you access to your money whenever and however you want
• Ideal if you want to make withdrawals regularly
• Straightforward and easy to use
• Earn more interest as your savings grow
• Balances over $5000 earn 0.10% interest p/a” or “Over $5000 = 0.10% interest p/a
• No fees for deposits

Cons:

• $1 fee for withdrawals
• $2 monthly account fee. No charge if your average daily balance is over $500
• Under $5000 – no interest earned

Westpac Online Bonus Saver

Pros:

• Bonus interest rate – 2.00% p/a if you make at least one deposit and no withdrawals
• No minimum balance needed
• No monthly account maintenance fee
• No fee for deposits

Cons:

• Low base interest rate – 0.10% p/a
• No ATM or in-branch withdrawals possible. Withdrawals require a Westpac transaction account

Payments that roll over without you noticing

The first step in getting some savings together is to know exactly where your money goes. Write a list of all the things you pay for over the course of a month then decide which ones you really need.

There may be some surprises on the list, things like direct debits for subscriptions to apps and other services you’ve forgotten you signed up to and have forgotten you get charged for.

What about those “free” trials? We all know how it works, you provide your credit card or bank details so that if you decide you want to continue the service after the trial is over the company can charge you for it. But a lot of the time people forget to cancel when the trial is up and keep paying for it.

These are sometimes called “ghost” or “phantom” expenses because you may not even know they exist! If you’re not sure how to spot them (because sometimes the company name on your statement doesn’t always match up to what you know the service as) there are apps like Trim and Truebill that you sync up to your bank accounts and credit card. Then you can scan your purchase history to find all the recurring costs so you can cancel them.

Ask yourself if you’re getting your money’s worth or if there’s a cheaper alternative. How much is your monthly gym membership? Divide that by how many times you’ve been in the last month to work out how much each visit costs; is it worth it?

Online streaming services fall into this category too. Netflix, Lightbox, Neon, Sky, Amazon Prime. If you subscribe to more than one of these, ask yourself if you really need them all or if you’re getting your money’s worth.

How to save money on food

Dreading another trip to the supermarket? We don’t blame you, food ain’t cheap! But there are some super easy ways to cut back on what you’re spending on groceries.

• Plan your meals and write a shopping list to stick to.
• Shop with cash only – a great way to stick to a budget!
• Take food with you – whether it’s packing a lunch for your work day, or a picnic for a day out, taking your own food will always be cheaper than buying it readymade somewhere else.
• Check the “reduced to clear” or “quick sale” items (but only buy them if you actually need them)
• Shop in more than one place – check the supermarket flyers to work out where the best deals are and follow your local produce shops on Facebook for their weekly specials.
• Eat what’s in season.
• Bulk out meals with cheaper ingredients like a side of rice, frozen veg or put lentils in your mince dishes.
• NEVER throw away leftovers – even if it’s just a tiny bit, after a few days you’ll have at least a snack’s worth of food. Or you might be able to repurpose them into a new recipe.
• Don’t shop hungry!
• Buy generic brands – often they’re produced by the bigger brands and just packaged differently
• Use your slow cooker and take advantage of cheaper cuts of meat.
• Compare the price per 100g – often the label at the supermarket will give you the price of the item and the price per 100g; this is a great way to compare the different brands and figure out which one is actually cheaper.

Top 5 Beauty Hacks

DIY your way out of debt

Buying something readymade is a surefire way to spend more money than you need to. If you’re trying to tackle your debt, check out these nifty ways to save money!

DIY gift ideas

• Print pictures on wood. Reverse an image, print it on wax paper then rub it onto a piece of wood for a rustic, antique looking piece of art.
• Get baking – everyone likes food. Dress up a stack of biccies with a nice ribbon. Make a Cupcake snow globe by placing a lovely decorated cupcake on a jar lid then screwing the jar on overtop. Layer brownie ingredients in a jar, decorate the lid and tie the instructions around the neck.
• Bath bombs or shower steamers always go down a treat. They’re made from pretty basic ingredients that you probably have in your pantry or at least can get from the supermarket for the most part. And there’s not much more to it than mixing them altogether.
• Framed keyboard letter art is unique every time. Take an old keyboard, pop off the letters you need to spell our your message and glue them into a cool frame.
• Make bespoke glassware by decorating plain glasses by dipping them in water and nail polish. Super simple and every glass is unique.
• Flavour infused oils, salts, butters or vodkas are so easy and inexpensive to create and the flavour combos are endless. Simply mix in their favourite ingredients for a fabulous foodie gift. How does cinnamon vodka sound? What about chili and garlic oil, lemon and basil butter or a Tuscan salt rub? Yum!

TIP: Make your DIY gifts look more expensive than they really are by packaging them up nicely. Take a trip to your local variety shop and check out what they have in the way of bottles, jars, boxes, bags and crafty bits to embellish them.

Upcycling winners

• Turn old bottles, jars and tins into all manner of things: vases, pen-holders, bird feeders, votives, lampshades, even a kayak to use in the pool!
• Turn old jumpers into scarves or mittens. You don’t even need to know how to sew!
• There are endless things you can make from pallets, from bedheads, to coffee tables and storage units.  You often see pallets being given away for free on the side of the road. Just go for a drive around your local industrial area.

Other DIY money savers

• If you have olive oil, a lemon, baking soda and white vinegar, you’re on your way to making your own cheap and cheerful, chemical free cleaning products.

How to become debt-free.

First of all, there’s good debt and bad debt. Good debt is when you borrow money for an investment that’s likely to grow in value, generate income, or you’re going to get a lot of use out of, eg. a mortgage on a house. Bad debt is borrowing for something you can’t actually afford and doesn’t have any long-term benefits.

Here are 6 ways to get on the road to becoming debt free:

Change it up

Getting out of debt will require some pretty serious lifestyle changes; things like cutting out bought coffees and drinks when you’re out on the town or taking a packed lunch to work rather then buying it every day. The savings you make should go towards paying back more than the minimum payments of your debt if possible.

Consolidate your debts

If you have multiple debts, then debt consolidation is the way to go! This is when you take out one loan to pay off all the others. Overall you end up with a lower average interest rate and it makes keeping on top of what you owe so much clearer and easier.

Avoid fees and penalties

Stay on top of your payments to avoid any late fees and penalties, which further add to your debt. Set up automatic payments with your bank to ensure you never miss a payment.

Create a budget

And stick to it!! Running a budget is a great way to keep track of when things are due. Write down when money comes in and when it’s due to go out. You’ll never miss a payment and you’ll have a really good grasp on where your money is really going.

Get a better credit card deal

Shop around for switching deals, where credit cards offer a very low interest rate for a set amount of time to get you to switch over your debt. If you do this, make the most of the low interest rate and make a concerted effort to lower the amount of debt.

Increase income or decrease costs

Look at ways to earn extra cash or save on your current costs of living and put this money towards paying off your debt. Likewise if any extra money you weren’t counting on comes your way (from a tax refund perhaps?!) it needs to go straight towards paying off your debt.

How long does it take to save a deposit for your first home?

In New Zealand the median house price – that’s the middle of the range – is $515,000 (figures from Real Estate Institute of New Zealand, Q3 2016) with the average house price sitting a bit higher at $631,000 (figures from April 2017 according to QV.co.nz). Lenders now ask for a minimum of 20% deposit on the value of a property before they’ll approve you for a mortgage.

You can tap into your Kiwisaver funds to go towards this, and if you meet certain criteria, you could also be eligible for a $5000 grant from the Government to top that up. But is it enough? How much do you need to save and how long will it take to get a deposit together for your first home?

Please note, our figures are based on a two-income household bringing in a combined $3,000 per fortnight before tax (that’s because Kiwisaver contributions come out of your pay before income tax is calculate and deducted). We’re also making the assumption you’re both eligible for the full KiwiSaver HomeStart Grant of $5,000 per person.

Going overseas? Don’t get slammed with currency exchange fees.

So you’re going on holiday – lucky you! You’ve been saving hard to get some spending money together so you don’t want to lose heaps of it to fees when converting your currency. Here are a few tips to help you make the most of your money.

Get money before you go

In the lead up to your trip keep an eye on the currency exchange rate of where you’re going to make sure you get the best deal possible.

Shop around the different banks and places that offer foreign exchange to get the lowest fees and best conversion rate. Interest.co.nz has a great calculator that compares four main banks when buying. Just tap in how much you want to buy.

Never change money at the airport

Kiosks at the airport tend to charge about 10, sometimes even 20 percent more than other places!

Pool your money

If you’re in a group, put all your money together and exchange it so you only have to pay one conversion fee. You might also qualify for a better rate if the total is high enough.

ATMS and cards

Don’t use your Eftpos card; you’ll be charged every time you use it. Do take your credit card though. You’ll need it for security deposits when renting a car or staying at a hotel. And it can be a lifesaver in an emergency.

If you are going to use an ATM, withdraw as large an amount as you can. Every time you use one you’ll be charged fees for the conversion of your money, fees by your bank for using your card overseas and sometimes even a fee by the bank whose machine you’re using – a triple whammy!

Prepaid travel cards

Prepaid travel cards are great if you don’t want to be laden with cash. You can put more than one currency on them if you have more than one destination and you can lock in an exchange rate before you go. Product ratings company, Canstar reviewed four prepaid travel cards and Qantas Cash came out on top with 5 stars, so is a great option when it comes to travel cards. The Qantas Cash travel money card offers online purchases, emergency fund transfers, the chance to earn rewards points and the ability to pre-load up to 10 foreign currencies. It also advertises no monthly account fees, no fees to pay when loading money and no domestic ATM fees with Qantas Cash within New Zealand.

Have a student loan and going to work overseas?

If you’re just going on a holiday for six months or less, the way you pay your loan doesn’t change. If you’re going for longer you will have to make payments and you’ll also be charged interest.

Your best option is to increase your regular payments and try to pay back as much as possible before you go. By cutting down the amount you owe before you leave the country, you’ll incur less interest while you’re away. Check out the IRD’s repayment calculator that will come in handy to work out your repayment obligation. You also have the option to apply for a repayment holiday of up to a year.

You will need to make at least 2 payments a year while you’re away but you can also choose to make smaller, more frequent payments. FYI, if you’re in Australia you can set up a PayWay from your bank account over there and IRD will pay the currency conversion cost. Get in touch with IRD to set this up.

Is being on the wrong tax code costing you?

Being on the wrong tax code is either costing you every pay because you’re paying too much tax, or you’re not paying enough and you’ll get a tax bill at the end of the financial year.

The tax code you’re on is based on the number of jobs (or sources of income) you have, your residency status, whether you have a student loan and/or receive any benefits.

If you’re paying too much tax, we can help you claim your refund.

To avoid not paying enough tax and getting a surprise bill, check your tax code with your employer, and make sure you always keep them informed of any change to your circumstances.

Not sure what tax code you should be on? You can ask your employer for an IR330 form anytime or just download a copy yourself. It has a flowchart that helps you determine which tax code you should be on.

Make budgeting sexy!

Don’t be fooled into thinking budgeting is unsexy. Swap the word ‘budget’ for ‘pre-planning’ or ‘forward thinking’; suddenly it sounds very on-trend.

Find your motivation

What is it you desire? Find your motivation to budget and save. Remind yourself of it often by making a vision board. Visualisation works and by keeping what you want front of mind it makes it easier to distinguish between the things you need and the things you want.

Shop around. Compare notes

Play the field. Shop around. Compare quotes. Check out those pesky supermarket mailers to find the best deals that week. Avoid buyer’s regret by sleeping on it instead of buying straight away.

Credit card rewards schemes

Take advantage of credit card rewards schemes. Choose one that gives you rewards and use it to pay bills and fund your lifestyle, BUT pay it off in full every month so you don’t incur interest. This way, you’re getting a little something extra pretty much for free.

Compete

Compete with yourself (or someone else) – if your groceries cost $100 this week, can you better it the next? Enjoy the buzz you get from seeing that savings total rise.

So, how do you actually budget?

It doesn’t have to be hard. Start by writing down WHEN your essential bills and expenses have to be paid by, and HOW MUCH they are roughly. (Tip: give yourself wiggle room, round each one up a dollar or two. Anything left over can be saved, no matter how small it is.)

Compare this to when your pay comes in. If you are paid more than once a month, see if you can split your bills over different pays. (Tip: a spreadsheet is an excellent way of keeping track visually.)

Now you have a choice. You can either take the amount left over and decide straight away how much of it will be savings and squirrel it safely away in another bank account you don’t use for spending. Or the other way round, decide how much of that you will limit yourself to spending and put the remaining balance into your savings.

If you have a certain savings goal in mind go with option 1; this way you’ll be able to work out how long it will take you to get there…it may even motivate you to save more!

Another tip: Arrange for your bills to be paid by direct debit on a credit card. Often you can get more than a month interest free period and could look at splitting your bills across even more paydays. You do need to be pretty disciplined and onto it to pull this off though; it requires keeping any eye on your credit card statement and balances due (easy to do with online banking). This works best for those who are paid more than once a month.