It’s that time of year again - the one when we start buying gifts for those we love, and worry about how we’re going to afford them.
Maybe you’re getting creative,thinking of DIY gifts , or perhaps you took advantage of the recent Black Friday sales. However you go about it, trying to give something thoughtful to each and every key person in your life without overspending can be a major headache.
Our message to you this holiday season is this: saving on your Christmas presents won’t save you.
Now, before you rapidly close this tab, let’s be clear: we do not advocate for spending more than you can afford, nor are we claiming that saving on presents will have no impact on your financial wellbeing.
However, we do believe there is so much more to planning your finances than simply spending a little less at Christmas.
We want to empower you to look at the big picture and not let the stress of aggressively saving ruin your holidays.
Focus on the long-term
It’s all well and good to save in everyday life, and we encourage you to make a realistic budget for holiday spending, but saving on your Christmas presents is not the key to long-term financial security.
You can make a bigger impact on your finances when you look at your long-term goals and make a plan to smash them.
We know that if you’re saving to buy a home, you might feel guilty spending on gifts. The pressure to save every cent to make your dream home a reality takes over and steals the joy of the season.
Or, perhaps you’re dutifully saving for retirement. You’ve read the advice about how much you should be saving and you have realised that you need to work hard now to maintain your lifestyle later. Spending on Christmas presents feels like stealing from your future self.
BetterSaver has a better plan. With a little preparation, you can put your money to work.
The easiest way to save has the biggest impact
KiwiSaver was designed to help Kiwis save for retirement. As some of the worst savers in the OECD ( one of the bottom five countries), we needed some help. With low barriers to entry (you’re signed up automatically when you get a job), over three million Kiwis have KiwiSaver accounts
The thing is, your KiwiSaver fund can make a bigger impact on your finances than saving on everyday small purchases. Your contributions, along with your employer’s contributions and the government’s contribution, are invested for you. Each fund varies on what it is invested in and how risky the investment is. You earn money in returns and compound interest, without having to actively manage it yourself.
It really is that easy.
Sort your finances with less stress
By taking a few simple steps, you can sort your KiwiSaver and put things in motion to get on track to reach your long-term financial goals.
First, decide what your goals are. Map out whether your next milestone is home ownership or a comfortable retirement.
What does that mean for you? How much money will you need? When do you see these things happening?
Then think about what sort of risk taker you are. Are you comfortable with taking a chance with some loss for potentially greater gains? Or do you prefer to stick with what you know and take a slow, steady, more secure path?
Also,what’s important to you? We’re talking about your values and ethics. Some people strongly advocate for climate change action, others try to recycle and reuse but it’s not a major focus. Some are totally against nuclear energy, while others see some benefit in continuing research. Only you know where you stand on ethical issues.
The last step is the easiest. Simply sort your KiwiSaver by taking our fund finder quiz. We’ll ask you about all of the above so we can match you to a KiwiSaver fund that suits you. We will find a fund that matches your comfortable risk level while enabling you to smash your goals, all while investing in things you want to support.
BetterSaver makes it easy to save
Our team works hard to research KiwiSaver funds so you don’t have to. Why? Because KiwiSaver is the easiest way to improve the financial livelihood of New Zealanders. It has the potential to enhance many people’s lives and the country’s economy as a whole.
In less than five minutes, you can be on your way to a solid financial future - and lose the stress about how your everyday spending is impacting your long-term goals. Take the quiz today and get started being a better saver.