Shelley Hanna answers your KiwiSaver questions

As your child grows, their happiness will be the most important thing to you. This is not the time to worry about your position on the property ladder. Photo / Getty Images

Q My partner and I are both in KiwiSaver, but she hasn't been contributing as she's on maternity leave with our first child. We are in our late 20s. I have a good job in construction. We are house sitting for a family friend over the winter which is saving us money. My KiwiSaver is now on $45,000 (I am contributing 4 per cent) and hers is on $32,000. We would like to buy a house when we can afford the mortgage repayments. Our friends all seem to be getting ahead and we feel we are being left behind and this is causing me a bit of stress. What can we do to improve our financial situation?

A There is no reason to stress. You are fortunate to have a place to live that suits you and is saving you a lot of money in rent, particularly while your partner is at home taking care of your baby.

House sitting is a great way to save, if you can tolerate the impermanence of it. Now that New Zealand's borders are opening up, there may be more house sitting opportunities if you wish to continue with it.

Your 20s can be a stressful time, as everyone is at a different stage in their lives and careers and it is all too easy to compare yourself with people that you went to school with, or work with. Some seem to rocket ahead financially and — if you believe what they post online — also manage to have an exciting social life.

Be aware that, under the surface, the situation may be quite different.

Also accept that some people are much more competitive than others. Those are the ones that will boast about how much they paid for their car, how big their bonus was and how much their property has increased in value since they bought it.

If this sounds like your friends, it may be time to put some distance between you and them if it makes you feel inadequate.

What are your values? What is important to you? What sort of home do you want for your family?

As your child grows, their happiness will be the most important thing to you. This is not the time to worry about your position on the property ladder or your net worth.

One way to achieve a happy home life is to reduce and eliminate money worries. If you find yourself on a reduced income for any reason (including maternity leave, study or illness), review your spending and make cuts where you can.

It is important to get your partner on board. It is frustrating if you are trying to save money – for example taking your own lunch to work — while your partner is leaving a heater on all day when it's not needed. Having regular discussions is a good idea as well as tracking your progress.

One small change you can make, is to set up regular contributions of $20 per week into your partner's KiwiSaver while she is not working, so that she will get the $521 top up from the government in July. If money is tight, reduce your contribution level to 3 per cent to make this possible.

It will be gratifying for your partner to see her KiwiSaver growing during the time that she is doing the important task of caring for your child.

• •Shelley Hanna is the communications manager with Peak Portfolio Management Ltd which is a Financial Advice Provider licensed by the Financial Markets Authority. Disclosure information is available at www.peak.net.nz or call 06 8703838. The information provided in this article is of a general nature and should not be relied on as a recommendation to invest in a financial product. Send your KiwiSaver questions to shelley.hanna@peak.net.nz