We know! Money can be stressful! But getting your finances in order doesn’t have to feel like it’s affecting your mental health. We have some tips to boost your financial wellbeing and hopefully help keep those anxious thoughts in check.
Set money goals
Making specific money goals gives you something exciting to work toward. Every good money goal needs:
- A goal – What you’re saving for
- A dollar amount – How much it’ll cost
- A date – When you want it
- An action – what you need to do to get there
Instead of saying “I should save more” (too vague!), try “I’m saving $2,000 for my emergency stash by December.” Then do the math: if you get paid every two weeks and have 10 paydays until December, you need to save $200 each time.
Understand what your lifestyle costs
Ever reached the end of the week wondering “where did all my money go?” We’ve all been there! Understanding what your lifestyle actually costs, helps you plan for the future.
The Sorted budget planner is a great tool to work this out. Enter in:
- What money comes in (your income)
- Must-pays (rent/mortgage, power bills, groceries)
- Fun stuff (takeaways, Netflix, hobbies)
- What you’re saving or investing
You’ll see right away if you’re spending more than you earn or if you’ve got extra cash to play with. If you make a second budget, you can see what you need to alter to be able to afford your next move. Maybe you want to upgrade to a bigger home, start a business, or maybe cut back your hours at work.
Money buckets, simple visual way to manage your cash
Picture this: payday arrives and instead of wondering where all that money should go, you already have a plan! That’s the magic of “money buckets.”
Try these buckets with our suggested splits:
- Mortgage/Rent (about 40%)
- Bills bucket (about 25%)
- Future-you fund (savings/investments – about 15%)
- Fun money (about 10%)
- Personal spending money for you and your partner (about 5% each)
These numbers are just a starting point – adjust them to fit your life!
Cole Murray can help
Financial wellbeing isn’t about being rich – it’s about having a money system that works for YOU. With clear goals, knowing where your cash goes, and automating your money, you’ll be well on your way to feeling great about your finances.
Need a hand setting up KiwiSaver for your first home or retirement? Or want to grow your money through investments? Come and talk to our friendly Wealth Advisers.
Thinking about buying a home or investment property? Or ready to be your own boss? Our Mortgage Advisers can help you!
