ASB: Tips to manage your money with confidence

Financial stress is one of the biggest challenges facing New Zealanders right now. According to the Financial Services Council’s 2024 Financial Resilience Index, 70% of Kiwi worry about money on a regular basis¹. The high cost of living, coupled with economic uncertainty, is making it harder for many to get ahead, or even stay afloat.

There are small things we can all do to boost our financial wellbeing so we sat down with Rachel Looi, ASB’s Financial Wellbeing and Inclusion Lead, to explore practical ways to manage your money with confidence.

We’re seeing a lot of pressure on people right now. The cost of essentials like groceries, fuel and housing has gone up, and it’s affecting everyone. 

From our research at ASB, we know that around half of New Zealanders are either struggling or just getting by. Even more concerning is that 43% of Kiwi don’t have $1000 available in the case of an emergency. Without a safety net, it’s easier for an unexpected expense to derail your finances. 

Sometimes it can feel easier to avoid looking too closely at your finances. But the first step to financial wellbeing is understanding where your money is going so you can make intentional choices.

Budgeting is simply a spending and savings plan. It’s not about cutting out all the fun, it’s about deciding how to use your money in a way that supports your priorities.

The ASB Budget Template is a great place to start. It’s free for anyone to use and helps you list your expenses, calculate how much you’re spending on essentials, lifestyle and savings, and gives you a clear breakdown.

If you’re an ASB customer, pair it with ASB Spend Tracker, which automatically categorises spending, and ASB Card Tracker, which identifies subscriptions you may no longer need, to make spotting opportunities to save even easier.

A good starting point for budgeting is the 50/30/20 split:

• 50% for needs (housing, bills, groceries)

• 30% for wants (entertainment, lifestyle)

• 20% for savings (short term or long term goals)

Everyone’s situation is different. If your essentials take up more than half your budget, you might try a 70/20/10 split or adjust to focus on paying down debt or building an emergency fund. The goal is to find a balance that works for your life.

A simple strategy to help manage your budget is using ‘money buckets’ or separate accounts for bills, fun and savings. Each payday, automate transfers into these accounts to ensure you’ll have the money you need to cover essentials and reduce the temptation to dip into savings. If you want to go even further, split your savings into two accounts: one for emergencies and one for personal goals.

It's about having control, not restriction. 

If you have debt, always start by making the minimum repayments and avoid taking on new debt where possible. Don’t forget things like Buy Now Pay Later or store cards are also debt that can easily add up.

Then choose a strategy to tackle your debt – here are three options you could consider;

• Pay more on your highest interest debt to reduce costs quickly.

• Focus on clearing your smallest debt first for a quick win and motivation boost.

• Consider debt consolidation (if eligible) to roll multiple debts into one easier to manage repayment, often with a lower interest rate.
   

Focus extra repayments on one debt at a time, then move that payment to the next once it’s cleared.

There are a few common misconceptions about budgeting that I hear often.

• “Budgeting means going without.”
  Not at all. A good budget is about spending on what matters to you, not about cutting out joy.

• “I’ve budgeted once, so I’m sorted.”
  Your budget should evolve with your life. Check in regularly and tweak it as your goals and expenses change.

• “I don’t earn enough to get financial advice.”
  That’s simply not true. You don’t have to be a high earner to benefit from advice and guidance. There are also free budgeting services available to people who need support.

• “All debt is bad.” 
  Actually, debt can be a useful tool. Think student loans or a mortgage. What matters is how it supports your goals and whether you have a plan in place to pay it back. 

Financial wellbeing is about being able to meet your everyday needs and handle life’s unexpected moments. It also means making steady progress toward your goals, whether that’s enjoying a family Christmas, buying a home, or retiring comfortably.

Budgeting and planning help you take control, shift your mindset about money, and build habits you can carry through life and pass on to your whānau. 

Here are some of the most useful tools to support your financial wellbeing:

• ASB MoneySpace – Online content with practical steps to build financial wellbeing (for anyone)

• Financial Wellbeing Score – Get a better understanding of your financial wellbeing in just a few minutes (for anyone)

• Financial Wellbeing Review – Organise a Financial Wellbeing Review with an ASB banker to discuss your personal money goals and create an action plan, in person or over the phone (for anyone)

• Support Finder – Discover government benefits you may be eligible for (for anyone)

• ASB KiwiSaver Scheme calculators – Check your first-home or retirement savings progress (for anyone)

• Budget Template – Build and review your budget (for anyone)

• Spend Tracker – Categorises and tracks your spending (ASB customers)

• Card Tracker – Check where you've saved your card details and any regular subscriptions you're paying for with your ASB Visa card (ASB customers)

• Mortgage repayment calculator – See how extra repayments save time and interest (for anyone)

• ASB Card Control – Set spending limits or turn off online spending on your ASB Visa cards (ASB customers)

• Rainy Day Savings Planner – Calculate how much you should set aside for emergencies (for anyone)

• Save the Change – Round up purchases into savings automatically (ASB customers)

• Hide a Savings account – Remove from view to reduce temptation (ASB customers)

• Goal Planner – Create savings goals and track your progress in the ASB Mobile Banking app (ASB customers)

*“For anyone”, means the tool is available for anyone to use, regardless of whether you bank with ASB.
“ASB customers” means the tool is available to ASB customers through the ASB Mobile Banking app or via Fastnet Classic Internet Banking.

Whakamā or shame around money matters is unfortunately very common, but you don’t have to manage it alone. If you’re still struggling despite budgeting and planning, help is available:

• MoneyTalks – Call 0800 345 123 for free, confidential advice from trained financial mentors

• Sorted – Free impartial tools and guides to help you manage your money