Gearing up for growth

What do we mean when we talk about having a 'growth mindset'?

It means not worrying about setbacks or what we haven't done, but identifying areas in which we can develop and improve, and doing something about it.

Discover some simple ways you can improve your financial wellbeing.

Why it’s never too late to join KiwiSaver

When it comes to KiwiSaver, the earlier you start, the more you gain. But if you’ve never been in the KiwiSaver scheme, you might be wondering whether you’ve missed the boat.

Our Chief Executive Blair reveals why it’s never too late to get started.


Join AMP KiwiSaver Scheme

How money can affect relationships

Money can be a big relationship stressor and source of conflict - but talking about money may help your relationship*.

Discover four ways couples can manage their money, and find out which one best represents your relationship.


How to spend money and feel good about it

Don’t have a budget? – you’re not alone. Many Kiwis avoid the dreaded “b” word, believing that budgets stop you having fun with your money.

But the secret to really enjoying the things we buy, is knowing we’ve got the important stuff covered – and that’s where a budget comes in.


Learn how to build a budget

Your path to financial freedom

Sick of hearing the ‘b’ word? Unfortunately, budgets get a bad rap, with many believing that they stop you having fun with your money.

The truth is budgets help you to enjoy spending by giving you greater visibility of what you can spend, while ensuring you have the essentials covered.

Basics of budgeting

The aim of a budget is to spend less than we earn, so that we can use the money left over to reach our goals. This is what’s called having a surplus. When we don’t have money left over, that’s what’s called a shortfall – where we’re spending more than we earn.

For our budget to work it needs to be accurate. It’s important to include all the details about our income and spending in our budget. Here’s five things to keep front of mind when creating your first budget:

  1. Start with the essentials
    This means food, shelter, clothing and utilities

  2. Tackle debt
    Especially high-interest loans like hire-purchase or short-term loans

  3. Schedule spending
    Time expenses like rent or utilities so they arrive around the same time you get paid

  4. Create a budget buffer
    It’s important to have a bit of money set aside to cover unexpected expenses

  5. Have goals
    Highlighted in ‘Setting yourself up for success’ is the importance of having goals to motivate us to stick to our budget

Keep on top of your finances

Unfortunately, you can’t simply ‘set and forget’ with a budget. There’s a few thing’s you’ll need to do to keep on top of your finances: 

  1. Continue to track your spending
  2. Set a date to review your goals and budget
  3. When you achieve a goal:
    • celebrate!
    • then start on the next goal

Ready to take the first step? Sorted’s budgeting tool can help you take control of your finances. Visit Sorted for more information on budgeting.

Important information

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The Government makes an annual contribution (what is referred to in the video as ‘free money’) of 50 cents for each dollar you contribute up to a maximum of $521.43 a year to your KiwiSaver scheme account provided you are a contributing member aged 18 or over and have not yet reached your Qualifying Date.  Qualifying Date means the date you qualify for New Zealand Superannuation (currently age 65); or if you joined after age 60, after five years’ membership of a KiwiSaver scheme or a complying superannuation fund. You will need to reside mainly in New Zealand unless you are a Government employee living overseas or you are volunteering (or working for token payment) for specified charitable organisations.

The KiwiSaver Government contribution year runs from 1 July to 30 June. If you join a KiwiSaver scheme or turn 18 years old part-way through a KiwiSaver tax year (1 July to 30 June), you’ll receive the Government contribution on the number of days in the year you’ve been an eligible member. This may mean you might not receive the maximum $521.43.

The reference to minimum contributions which are less than a cup of coffee a day is a reference to the amount that you need to contribute in order to receive the full current Government contribution of $521.43.

The reference to having more than $30,000 in your account now if you had started contributing to a KiwiSaver account 12 years ago, at the outset of KiwiSaver, is an amount before tax, fees and returns, and is based on the following assumptions:

  • That you and your employer contributed consistently for 12 years at the minimum rate (3%) and that your salary was no less than $34,762;
  • That you received the Government kickstart of $1,000 (the Government kickstart was removed in 2015 and is no longer available to new joiners);
  • That you received the full Government contribution for each of the 12 years since you joined KiwiSaver, with the Government contribution for the first four years being at a higher rate of $1,042.86 each year (the maximum Government contribution was reduced from $1,042.86 to $521.43 for the year ended 30 June 2012 and following years); and
  • That you did not make any early withdrawals.

Past performance is not indicative of future returns.  The information included in this video is of a general nature, is the opinion of Blair Vernon, and is not a substitute for financial or other professional advice. To the extent that the information constitutes advice, it is class advice only. Before taking any action, you should always seek financial advice or other professional advice relevant to your personal circumstances. For personal financial advice, we recommend you contact your Adviser or if you don't have an Adviser, contact us on 0800 267 263 and we can put you in touch with one. A copy of your Adviser's disclosure statement is available, on request and free of charge.

The information in this video is of a general nature only and reflects the opinions of the presenter as at the time of release (September 2018). It is no substitute for personalised advice. If you would like advice that takes into account your particular financial situation or goals, please contact your Financial Adviser. Your Adviser has a disclosure statement that is available on request and free of charge. While care has been taken to ensure that the information in this video is accurate, no entity or person gives any warranty of reliability or accuracy or accepts any responsibility arising in any way including from any error or omission.