Start Saving with Two Simple Steps

Read More

Start Saving with Two Simple Steps

Kiwis are being urged to “Think, Shrink, Grow’ by the Commission for Financial Literacy and Retirement Income in their campaign to improve our money habits. We’ve heard that ‘Think’ means to set goals and plan ahead and ‘Shrink’ is all about getting rid of debt, especially ‘dumb’ debt. Once you have set your goals and tackled debt, it is time to ‘Grow’ your savings. There are three main purposes for saving; for goals such as a holiday, a new car or the deposit on a house; for emergency purposes such as illness, redundancy or unexpected expenses; and for long term goals such as retirement. There are two simple steps to take to be able to start saving.

Step One: Reduce your fritter factor. Saving more means spending less. The easiest spending to cut back on is spending on low value items such as coffee, lunches, magazines and personal items. Simply cutting out one coffee a day could allow you to save $20 a week, or $1,040 a year. That’s enough for a good holiday. Cut back on things that aren’t important to you so you have the money you need for the things that are really important, such as your goals.

Step Two: Set and forget. The most painless way to save is to set up an automatic payment to transfer money into your savings account every pay day. You will soon adjust to living on a lower amount. If you are worried about how much you can save, start with a small amount. Once you get used to living on slightly less, gradually increase your savings. The reward of seeing your savings grow and being able to achieve your goals will give you the motivation to continue.

For more information on how to ‘Think, Shrink, Grow’ click here.

Related Articles

Economy
Liz Koh

Budget Winners and Losers

The latest Government budget had something for everyone but while most households will be a few dollars a week better off, there are some clear winners and losers. In the winners’ corner are businesses, those on high incomes, and savers. The biggest losers are property investors who have built large portfolios financed partly by tax rebates.

Read More »

Top Up or Miss Out

The end of June is an important date for KiwiSaver members. The financial year for KiwiSaver runs from 1 July 2009 to 30 June 2010 and if you have contributed at least $1,040 to KiwiSaver during that time, you will be eligible for the full amount of Government tax credit to be paid into your KiwiSaver account in July.

Read More »

Responsible Investing

There is a worldwide trend for investors to want to make a positive contribution to the world by investing in companies that are socially and environmentally responsible. If you are passionate about the effects of climate change, the scarcity of food and water, and social or environmental policies in general, then you will no doubt wish to ensure that the companies in which you invest are going about their business in a manner that is consistent with your views.

Read More »

Helping You Live your retirement To the Max

Keep in touch

Fill in your details and we’ll get back to you in no time.