Kiwis urged to rethink spending by ‘saving first’

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New Zealanders aren't great at saving, a survey of 2000 people by the Financial Services Council has found.

The survey also found that more than a third of the public would not be able to pay its mortgage or rent and bills beyond a month if it lost jobs.

The study is the first of a three-part research project.

Financial Services Council chief executive Richard Klipin told RNZ’s Morning Report talking about money needed to be a national conversation.

"Being good with money is a special language and we need to get to speak it a whole lot more effectively because when the rainy day comes we need to be able to tap into our savings and resources. Sadly, there has not been too much improvement."

He hopes the COVID-19 pandemic would get people to "rethink, relearn and restart the conversation".

"The research found that only 21 per cent of us actually feel like we're in control of our finances."

He says there was a link between relationships, overall health, wealth and wellbeing.

As the pandemic took off, he says spending had dropped.

"It hopefully gave us all an opportunity to pause and reflect what do we actually spend our money on, what gives us happiness ... and maybe it is not going out every night or getting those takeaways. Maybe it is about paying ourselves first, saving first."

In March, Finance Minister Grant Robertson said a universal basic income was one of the options being considered to help people who lose their jobs or face uncertainty.


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Saving is hard.

Posted on 20-06-2020 14:08 | By morepork

But it CAN be done. Pay yourself first by taking 10% of everything you earn (including wins from gambling or debts repaid) and putting it into an interest bearing account. Make automatic payments to that account and don’t even think about touching what is in it for at least the first year, and after that, only in EXTREME emergency. Pretend it doesn’t exist and go on with your life. Read a book called: "The Richest Man in Babylon". It should be compulsory in all our High Schools so kids can learn about managing money.

Your dreaming mate

Posted on 16-06-2020 20:31 | By Lyrch

Easier said than done, been on 80% of my wages since lockdown and have exhausted my credit, savings and then some. It’s going to be at least another six plus months before I can even look at any savings?!


Posted on 16-06-2020 20:31 | By Carcass

Savings destroys the cash flow that is how we live and businesses survive and employ people.If you can not make enough money how do you save?What next goodness me it is a simple formula