NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / New Zealand

How to prepare for the financial clouds on the horizon

Frances Cook
By Frances Cook
BusinessDesk Investments Editor·NZ Herald·
12 Aug, 2020 05:00 PM5 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Times are tougher, but New Zealanders are preparing for it. Photo / file

Times are tougher, but New Zealanders are preparing for it. Photo / file

COMMENT:

The Herald's Cooking the Books personal finance podcast is here to get you the tips you need to weather the financial storm. Hosted by Frances Cook, with a new expert on each episode.

There's only one good thing about those financial clouds on the horizon – we can see them coming, and many New Zealanders are heeding the warning.

It's Money Week, and so Sorted has released some research to show how we're handling our cash since Covid-19 changed… well… everything.

Listen to the Cooking the Books podcast here:

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

As you might expect, it's a mixed bag. So let's start with the bad news.

Increased numbers of us are facing financial difficulties, with 31 per cent of New Zealanders needing to dip into their savings to pay for the basics.

Even worse, in the May-June period of this year, 24 per cent of those surveyed missed at least one bill or loan payment.

Advertisement
Advertise with NZME.

However, facing increased financial head winds seems to have created a desire to do better with our money. So here comes the good news.

More New Zealanders now have a savings account big enough to pay for one month of expenses, and are trying to save more each month.

Don't get too excited; fewer than one in three of us have the recommended three months of expenses salted away in a savings account. But it's still an improvement on our collective savings situation before Covid-19, and any improvement is good news.

Fewer of us are embarrassed about our money situation, and more of us are willing to talk about it, which is excellent. No matter what's happening in your wallet, shame never helps anyone.

Discover more

Lifestyle

The realities of op shopping through a pandemic

20 Jun 05:00 PM
Personal Finance

Why is the sharemarket strangely positive?

22 Jul 05:00 PM
Personal Finance

Five tips to cut down your food bill

02 Aug 07:37 PM
KiwiSaver

The surprising confidence among KiwiSavers, even after Covid-19

05 Aug 05:00 PM

So with more of us in financial difficulty, and many of us looking to save more even if those difficulties haven't hit yet, it's the perfect time to reassess the budget.

I strongly believe that the ideal budget shouldn't make you feel restricted. It should be about prioritising what's important in your life, cutting out what isn't, and making sure you hit those long-term goals.

Here are some budgeting tips from the latest Cooking the Books podcast, to help you create a budget that doesn't get in the way of your life.

1. Set a goal

Your goal can be as big or as small as you like, but you need to start with why you're doing this.

Do you want to make sure you have enough money at the end of the week for brunch with friends? Do you want to make sure you're saving regularly, so that you feel less stressed?

Advertisement
Advertise with NZME.

Or do you want a save-to-spend account, where you build up enough to go on a nice holiday when the borders finally open up again? Or to hit a big life goal, like finally buying a house?

What matters is picking a goal that excites you. That's what budgeting is all about.

Once you know what you're putting money aside for, it's easier to cut out the other spending that is getting in the way.

2. Figure out what's coming in and going out

At its most basic, a budget checks what's coming in, what's going out, and whether you've got money left or you're going over. There are lots of easy ways to figure it out, and it's just about finding the one that works for you.

Pull up your bank account and write down all the regular bills. Then take note of how much you're paid each week.

Advertisement
Advertise with NZME.

If you're a detail person, feel free to get into excel or a budgeting app, and set down everything with its own category, and balance out the incoming versus outgoing money.

If you're not, no worries! Maybe group together expenses into bigger categories like core bills (housing, transport, food), the kids, savings money, and fun money. Then see which one is hitting your wallet the hardest.

You can also try the Sorted Budgeting Tool if you want a free way to quickly see where you're at.

3. Let's get physical

If you're trying to reduce spending, seeing the money leaving your hands is a psychological trick that really works. This is why some people love the envelope or jar method.

Take your money out in cash once you're paid, and split it into envelopes or jars that are marked for what that money can be spent on. Once that money is gone – it's gone!

Advertisement
Advertise with NZME.

4. Budget for fun, so you don't snap

Budgets and having a fun life definitely mix.

Start by prioritising anything you like to do that's either cheap, or free. Then think about the other things you like doing, and how you can include them in a budget-friendly way.

After that, include these things in your budget. You can't go cold turkey on life's joys just because you're cutting back, and you certainly don't need to.

Listen to the Cooking the Books podcast here:

• Listen to the full interview on the Cooking the Books podcast. You can find new episodes on Herald Premium, or subscribe on iHeartRadio, Apple podcasts app, or Spotify, or wherever you get your podcasts.

Advertisement
Advertise with NZME.

• If you have a question about this podcast, or question you'd like answered in the next one, come and talk to me about it. I'm on Facebook here, Instagram here and Twitter here.

Save

    Share this article

Latest from New Zealand

New Zealand|auckland

'Tragic': Teenage boy dies after West Auckland crash

01 Jul 10:29 PM
Premium
Wellington

Council confirms cost of new parking system after Ombudsman intervenes

01 Jul 10:00 PM
New Zealand

Why an outspoken leader is resigning and returning to Rotorua

01 Jul 10:00 PM

There’s more to Hawai‘i than beaches and buffets – here’s how to see it differently

sponsored
Advertisement
Advertise with NZME.

Latest from New Zealand

'Tragic': Teenage boy dies after West Auckland crash

'Tragic': Teenage boy dies after West Auckland crash

01 Jul 10:29 PM

Crash on Coatesville-Riverhead Highway occurred after police signalled driver to stop.

Premium
Council confirms cost of new parking system after Ombudsman intervenes

Council confirms cost of new parking system after Ombudsman intervenes

01 Jul 10:00 PM
Why an outspoken leader is resigning and returning to Rotorua

Why an outspoken leader is resigning and returning to Rotorua

01 Jul 10:00 PM
Suppression lapses for father accused of smothering daughter, 5

Suppression lapses for father accused of smothering daughter, 5

01 Jul 09:49 PM
From early mornings to easy living
sponsored

From early mornings to easy living

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP