New Zealanders are among the world's worst savers ranking 26 out of 29 countries based on household forecasting data from the OECD.
Kiwis are predicted to save -1.23 per cent of their disposable income in 2020 which means they will be spending more than they have, according to analysis by Finder - a comparison website for financial products.
With an average disposable income of $36,148 Kiwis are expected to spend an extra $445 they don't have, putting New Zealand ahead of only Lithuania, Finland and Spain when it comes to saving.
Switzerland topped the household savings rankings with a rate of 17.64 per cent, followed by Sweden (16.43 per cent) and Luxembourg (13.41 per cent).
Angus Kidman, global editor in chief at Finder, said instead of saving money, Kiwis were spending more than they earn.
"While it might not seem like a big deal to go into the red now and again, what most consumers don't realise is the lost opportunity of having that money earning interest in the bank."
Kidman said those struggling to save should start by reducing their overheads.
"Bills like your phone, internet, and even your TV streaming service, can usually be reduced by negotiating a cheaper rate or by switching providers.
"It's also important to make sure you're getting the best savings interest rate. Instead of automatically going with your current provider, compare traditional and online accounts - online account tend to offer higher returns."
World's worst savers
1 Lithuania -4.74%
2 Finland -2.58%
3 Spain -1.94%
4 New Zealand -1.23%
5 Latvia -1.02%
Kidman said long-term saving could be very hard to start and he urged people to think of its as a marathon rather than a sprint.
"If you put away $50 a week into your savings, this will quickly add up to $2,400 a year, plus interest.
"If you're disciplined and keep putting the same amount aside for 10 years, you'll have roughly $30,311 set aside, including over $4,000 of interest at a rate of 3 per cent. This means that regardless of economic conditions you'll have a rainy day fund – one that can also double as your mortgage offset account."
The research found that while Australia ranked better than New Zealand when it came to saving they also took on more debt.
Australians had an average forecast savings rate of 2.1 per cent which meant they were saving an extra $1490 more than Kiwis but had a household debt to disposable income of 216.27 per cent compared to New Zealand's 121.15 per cent.
World's best savers
1 Switzerland 17.64%
2 Sweden 16.34%
3 Luxembourg 13.41%
4 Hungary 10.77%
5 Germany 9.94%