Money – it’s a bit like a good mate. Treat it right, and it’ll have your back when you need it. Take it for granted, and before you know it, you’re left scrambling. For Kiwis, managing money better isn’t just about stashing away dollars; it’s about striking the right balance between living a good life now and securing the future.

So, how do we develop financial habits that work for us? Let’s unpack the typical Kiwi approach to money, the common traps we fall into, and some practical ways to get ahead without feeling like we’re sacrificing everything fun.

The Attitude Toward Money: A Love-Hate Relationship

If there’s one thing we Kiwis are known for, it’s our ‘she’ll be right’ attitude. We tend to live in the moment, whether it’s splashing out on a bach getaway, buying rounds at the pub, or funding our weekend footy rituals. While there’s nothing wrong with enjoying life, this carefree attitude sometimes comes at the cost of financial security.

Many of us grow up with little formal education about managing money better. It’s no wonder that personal debt levels have crept up, with credit cards, BNPL schemes, and personal loans becoming part of our financial toolkit. While these can be useful when used wisely, they can also create a cycle where we’re constantly playing catch-up.

Common Money Mistakes We Make

1. Living Pay-check to Pay-check: We’ve all been there. You get paid on Thursday, and by Monday, you’re wondering where it all went. This cycle makes it hard to get ahead, leaving little room for savings or emergencies.
2. Ignoring a Budget: Budgeting sounds boring, but not knowing where your money is going is like driving blindfolded. Without a plan, small expenses sneak up, and suddenly, you’re wondering why your bank balance is lower than expected.
3. Relying on Short-Term Fixes: Credit cards, overdrafts, and payday loans can feel like lifesavers, but they’re expensive long-term solutions. Interest and fees add up quickly, making it even harder to break free from debt.
4. Falling for Lifestyle Inflation: Got a pay rise? Sweet as! But instead of saving or investing the extra cash, we tend to level up our spending – a fancier car, more takeaways, a gym membership we barely use. Before we know it, we’re in the same financial position as before.
5. Not Preparing for the Unexpected: Life is full of surprises – a sudden job loss, a car repair, or an unexpected bill. Without an emergency fund, these surprises can throw everything off track.

How to Start Managing Money Better

The good news? You don’t need a finance degree to get on top of your money. Small, consistent changes can have a massive impact over time. Here’s how:

Get Real About Your Spending

Grab your bank statements from the last three months and have a proper squiz. Where is your money actually going? You might be shocked to see how much those daily flat whites and Uber Eats orders add up to.

Set Up a Budget That Works for You

Budgeting doesn’t mean giving up everything you love. Instead, it’s about prioritising. Try the **50/30/20 rule**:

• 50% for essentials (rent, bills, groceries)
• 30% for lifestyle (entertainment, dining out, hobbies)
• 20% for savings and debt repayments

Apps like Pocketsmith (a Kiwi-made budgeting tool) can help track your spending without the headache.

Build an Emergency Fund

Having at least three months’ worth of expenses saved up can be a game-changer. It means you won’t have to rely on credit cards or loans when unexpected costs pop up.

Smash Debt Strategically

If you’ve got multiple debts, consider the snowball method (paying off the smallest first for quick wins) or the avalanche method (paying off high-interest debts first). Refinancing or consolidating debt with a lower-interest loan (like those offered by Rhino Solutions NZ) can also be a smart move.

Make Saving Automatic

Set up an automatic transfer to a savings account the moment your pay comes in. Out of sight, out of mind – and before you know it, you’ve built a decent savings buffer.

Invest for the Future

KiwiSaver is a no-brainer – free money from your employer and the government? Yes, please! If you’re not already contributing, at least aim for the 3% minimum to take advantage of employer-matched contributions. Beyond that, explore other investment options like shares or property to grow your wealth over time.

A Relationship Worth Working On

Your relationship with money is like any other relationship – it takes time, effort, and a bit of trial and error. The goal isn’t to hoard every dollar but to find a balance where you can enjoy today without stressing about tomorrow.

By making small changes – from tracking your spending to setting up automatic savings – you’ll start managing money better without feeling like you’re missing out.

At Rhino Solutions NZ, we understand that sometimes you need a helping hand to get back on track. Whether it’s consolidating debt or funding a big life goal, we’re here to help Kiwis build healthier financial habits and a brighter future.

Ready to take control of your finances? Start today – your future self will thank you for it!