Making that little extra go further

Changes to tax rates will mean many Kiwis have a bit more take-home pay from this month. So how should you make the most of that extra cash in your pocket?

If you don’t need the money to help you meet day-to-day living costs, there are two steps you can take that will help your financial position now and in the future.

Step one is to put the extra to paying off debts – focusing on high interest debts, like credit cards and hire purchase. 

Step two is to use the extra for saving – adding it to your existing savings or starting a new savings plan. If you haven’t already, start saving for an emergency fund - an amount you can call on if the unexpected happens.

To avoid facing debt in the New Year, how about putting some money aside each week to help fund your Xmas presents and summer holiday plans?

Or if saving for a first home or retirement is on your mind, then this could be the right time to seriously consider KiwiSaver. Maybe you can afford the contributions now.

You can get more information on managing debt and saving (along with four other steps to getting sorted) in the new booklet ‘Sorted - Your guide to getting there’ which you can order free online or by calling 0800 SORT MONEY (767 866). You can also pick up a free copy from your local branch of ANZ or The National Bank.

The Sorted website has tools to help you achieve these steps, including Debt, Saving and KiwiSaver calculators.

If you don’t think you can afford to pay off debt or save, start by making a budget using our Budget calculator or call 0508 BUDGET (283 438) to talk to a trained budget adviser.

Published Tuesday 14 October 2008