6 spending habits that are holding you back

Habit 6. You're spending too much

Your expenses are too high, and you’re out of money by the time you get paid (or before).

How to fix it: Write down everything you spend for a month. See where you’re spending your money, and areas you can cut spending down. Then, draw up a money plan and do your best to stick to it. Start putting little sums aside for a rainy-day fund.

Habit 5. You don't ask for a pay rise

You simply don’t have enough money coming in. You're guilty of not pushing for pay rises.

How to fix it: Could you organise a pay review, ask for a promotion, or change jobs to one that pays more? Or could you move into a better-paying industry? Start a side hustle if you have the time and energy. Sell unwanted goods online.

Habit 4: You spend too much on major living costs

A mortgage or rent, household expenses, food and transport are usually the biggest spend each pay cheque.

How to fix it: If you’re renting, move to a smaller, or cheaper house, or move in with friends or family for a while. Shop around for better deals on power, internet, and your phone plan. Get savvy at the supermarket – plan meals, take leftovers for lunch, and shop for bargains. Could you swap your car for a bike or walking, or use public transport to save on fuel? 

Habit 3. You like to keep up with the Joneses

Are you buying fashionable clothes, and trying to keep up with the latest trends?

How to fix it: Often the richest people in your community don’t look it. Millionaires often drive average cars, and aren’t flashy. Cut down on expensive brands for a while, and look at op shops, TradeMe, or cheaper clothing ranges. Look to build a ‘capsule’ wardrobe of just a few matching key items and invest in quality.

Habit 2. You can't get on top of your debts

Paying interest is wasted money. Are you drowning in personal debt?

How to fix it: Plan to reduce your debt, starting with by paying off the debt that has the highest interest. MoneyTalks is a free budgeting service that can help. Could you consolidate all the debt into one loan? Sell items to pay off debt.

Habit 1. Your mortgage or rent is too huge

Your mortgage repayments or rent is so high.

How to fix it: See a mortgage broker or financial adviser. You may be able to get onto a lower mortgage rate, or you could change to interest-only for a time, if you’re desperate. Can you get a boarder, flatmate, short-term tenant or exchange student in to help with rent and bills? 

Published 12 February 2020

Pie Funds Management Limited is the issuer of the JUNO KiwiSaver Scheme. You can read our Product Disclosure Statement. All content is correct at time of publication date. This article is general in nature only and has not taken into account any particular person’s objectives or circumstances. Before relying on it, we recommend you speak with an independent financial adviser.