Stats NZ data shows living costs for the average Kiwi household went up 3% last year, with the biggest hits coming from higher mortgage interest, insurance, rates, and rent. It’s not as steep as the 8.2% jump back in 2022, but prices are still climbing and putting pressure on most households.
So, if you feel like you’re just making ends meet, you’re not alone! Managing finances on a tight income can feel overwhelming, so here are seven practical savings hacks that can help all Aucklanders make their dollars go further.
1. Master the 50/30/20 Budget Rule
Budgeting is the cornerstone of financial stability. The 50/30/20 rule is a simple yet effective method: allocate 50% of your income to needs (like rent and groceries), 30% to wants (like entertainment), and 20% to savings. This approach helps you prioritise essentials while still enjoying life and building a safety net. Tools like the Sorted budgeting tool can assist you in setting up and maintaining this budget.
2. Automate Your Savings
Out of sight, out of mind. Automating your savings ensures consistency and removes the temptation to spend. Set an amount to save each week and automatically transfer it to a savings account. To remove the temptation to spend, you could have this account with a different bank and don’t have a debit card associated with it.
You can also use apps like Booster Savvy, which offers features like “Boost” to round up your purchases and deposit the difference into your savings. Tools like this make saving effortless and can help you build a financial cushion over time.
3. Embrace Frugal Living
Frugality doesn’t mean deprivation; it’s about making intentional choices. Simple changes like meal planning, buying in bulk, and utilising public transport can lead to significant savings. Websites like MoneyHub offer comprehensive guides on cutting costs in various aspects of life, from utilities to groceries.
4. Utilise Budgeting Apps
Keeping track of expenses can be daunting, but budgeting apps simplify the process. Apps like PocketSmith and GoodBudget help you monitor your spending, set financial goals, and stay on track. These tools provide visual insights into your financial habits, making it easier to identify areas for improvement.
5. Explore Side Hustles
Supplementing your income can alleviate financial pressure. New Zealand offers various side hustle opportunities, from freelance writing and tutoring to delivering food or selling handmade crafts online.
6. Seek Government Assistance
Don’t overlook the support available through government programs. Initiatives like Working for Families offer tax credits and financial assistance to eligible families. Additionally, Work and Income provides various forms of support, including accommodation supplements and hardship grants. It’s worth exploring these options to see what assistance you may qualify for – you may be entitled to support and not even realise it.
7. Negotiate Your Bills
Many service providers are open to negotiating terms to retain customers. Contact your utility, internet, or insurance providers to inquire about discounts or more affordable plans. Comparing rates and switching to more cost-effective options can lead to substantial savings over time.
How Auckland Loans Can Help You Regain Financial Control
If you’re juggling multiple debts and finding it challenging to keep up, Auckland Loans offers solutions tailored to your needs. Our debt consolidation loans can simplify your finances by combining multiple debts into a single, manageable payment.
Bad credit? No worries. We understand that life happens, and a less-than-perfect credit score shouldn’t prevent you from accessing financial support. Poor credit history isn’t a deal breaker for us. We believe in second chances, that’s why we offer:
- Unsecured loans: Borrow up to $75,000 with interest rates starting from just 11.95%.
- Secured loans: Access up to $150,000 with rates from as low as 9.95%.
Our local Auckland team is committed to providing fast, friendly service, ensuring you receive the support you need promptly. With flexible repayment options and a straightforward online application process, taking control of your finances has never been easier.
