Life Stages > Budget too tight?

Budget too tight?

Shaun and Lucy have just had a baby. Shaun is 30 and earns $60,000 and Lucy is now a full-time Mum at home.

They'd like to get into KiwiSaver but they're not sure they can afford to save 4% of Shaun's wages right now. Having gone from two incomes to one and with the costs of a new baby, their budget is tight.

First they use Sorted's Quick KiwiSaver calculator to find out how much they could potentially save for their retirement. When they see the figures, they decide it's worth taking another look at their budget. But on Shaun's salary, 4% is $92 a fortnight, and they can't really see where to make savings.

Together they decide to get help from a budget adviser. Shaun calls 0508 BUDGET and the adviser helps them to take a hard look at their spending. In the end they work out that they can save the $92 a fortnight if Shaun takes his lunch to work and Lucy stops a gym subscription she no longer uses now she's busy with the baby. The adviser also suggests Shaun negotiate for a pay rise when his contract comes up for renewal.

Lucy and Shaun are comforted by the fact that, if they find it too hard to stick with their budget at any time after a year in KiwiSaver, they can take a contributions holiday.

Glossary: adviser
A person who sells financial advice and/or products. They include financial advisers, insurance agents, planners, sharebrokers, mortgage brokers and bank managers or agents. They may be salaried, paid a commission or have an hourly rate.