Starting to save

From little acorns…

Even if you can only afford to put aside a few dollars a month, do it. Not only will those few dollars eventually add up to something substantial, you’ll also start forming good savings habits.

Pay yourself first

Rather than save whatever’s left at the end of the month, do things the other way around. Set your savings aside as soon as you’re paid. Work out a budget to see how much you can afford to save - just make sure you’re being realistic, otherwise you won’t stick to it.

Be ready for life’s hiccups

One of the first things you should think about saving for is an emergency fund. Life doesn’t always go to plan, so aim for enough to cover you for at least three months' expenses. That way if something unexpected comes up, you won’t have to dip into debt to sort it out.

Insurance can help protect you too. There are different options depending on your needs and circumstances.

Set goals

Once you’ve got your emergency fund covered, think about what else you want to achieve and how long you think it will take to get there.

Having concrete goals, like saving for a holiday, a car, or a house deposit, tends to be more motivating than just simply saving for the sake of saving.

Our Goal Tracker can help you visualise your savings. You can enter your savings target and your deadline and link it to an account. You can then track your progress every time you log into that account.

Mind the fees

One of the easiest ways to save money can be to understand what banking fees you’re paying every month and figure out what you can do to avoid them. Check out our tips on how to reduce bank fees.

Choose the right accounts

We’ve got a bunch of savings or investment options. To find the one that will best suit you, have a think about what’s important to you – is it a higher interest rate? Instant access to your money? No account fees?

If you don’t need immediate access to your money, a Notice Saver or a Term Deposit might suit you. If you do want instant access, then something like an Online Call account might be better for you.

Think about the future

Retirement might sound like a long time off, but to make it comfortable you need to start thinking about it early.

KiwiSaver is a simple and affordable way to save for your retirement. It’s voluntary but comes with a lot of great incentives to join up, including employer contributions and if you’re eligible, government contribution. It makes saving easier because the money you contribute comes directly out of your pay before you receive it.

Making a decision about joining a KiwiSaver scheme is an important one. As with any investment, it makes sense to do your homework and choose a scheme that best suits your individual needs.

Your money is generally locked in until you turn 65, but first-time homebuyers may be able to dip into their KiwiSaver accounts to help fund their first home.

If you’re employed you’ll have to contribute the minimum of 3% of your gross (before tax) wage or salary to your KiwiSaver account, unless you are eligible for a Savings Suspension.