Real-life read: Noreen

The theme of Sorted Money Month 2025 is emergency savings. Do you have money set aside to support you in an emergency? 

My partner and I are equipped to handle smaller financial surprises, such as unexpected car repairs, and prioritise maintaining at least three months’ worth of expenses in our emergency account. Having this financial cushion significantly reduces our anxiety about unforeseen circumstances and provides us with a greater sense of security, knowing we can support ourselves and potentially other family members during difficult times. 

As well as car repairs, what other types of other events would constitute emergencies to you? 

My children are heavily involved in sport, and between registration fees, uniforms, travel and other related costs, supporting their passion can be quite a financial undertaking. Having an emergency fund allows me to readily cover these expenses and them to participate, even when unexpected costs arise with little warning. 

We also consider unexpected Samoan family obligations or events, fa’alavelave, to be emergencies. Both of my parents have more than eight siblings, so funerals, weddings, title bestowments and other major events involve deeply rooted cultural obligations to express love, respect and support. Despite living in New Zealand and facing economic challenges, we still feel obligated to contribute financially. 

Has there been a situation in which you didn’t have an emergency fund but wished you did? 

I remember the time my dog became seriously ill and needed an urgent trip to the vet. After X-rays and treatment, I received a $1800 invoice. This happened shortly after a significant payment for my daughter’s school sports trip to Tauranga, so even though we had an emergency savings fund at the time, it wasn’t enough to cover these two events. It prompted me to re-evaluate my spending and discuss increasing our contributions to our emergency savings with my partner to avoid future distress. 

How do you build and maintain your rainy-day fund? 

In 2018, when we bought our first home, we received a $5000 cash-back offer from the bank, which we immediately put into our emergency fund, giving it an initial boost. Since then, we’ve consistently contributed to this account each fortnightly payday. Every January, we review our expenses from the previous year, consider the current cost of living, and agree on a transfer amount. We started with $100 each per fortnight in January 2018 and upped it this past January to $150. 

This year, I also started a 12-month, $10,000 challenge for extra motivation. Beyond my regular contributions to my emergency fund, instead of making impulse purchases, I’m depositing any spare cash I have into a big piggy-bank-style tin that I got from a dollar store and have turned into my own savings game. I’ve written values of $5, $10, $20, $50 and $100 across 480 squares from my son’s old math book – yes, I’m upcycling too! – and if I add the corresponding value to the tin and cross it off, it’ll all add up to $10,000. This strategy gives me hope for a stress-free Christmas this year, because we’ll have it covered. 

What are your top five tips for growing and maintaining your fund?