The post Managing your finances when life throws you a curveball appeared first on Credit Simple NZ.

If you’ve never had a budget, or if you’ve tried and given up on one before, it can be easy to get overwhelmed. Visions of complicated spreadsheets and living on nothing but 2 minute noodles make the idea seem at best, snore-inducing and at worst, overly restrictive. But the truth is it takes very little effort to get a basic system – ‘money buckets’ – in place. This is great news, as it can mean the difference between major savings and none at all.

If you’re hesitant to set up a budget, or even if you have one now that’s only kind of working for you, here’s a solution that may just work: separating you money into ‘buckets’.

What is a money ‘bucket’?
The concept of ‘money buckets’ has been doing the rounds of the personal finance blogs and media for a while now, and it’s a simple one: instead of a complicated line-by-line budget that accounts for every cent, you simply split your income into large ‘buckets’, setting up a separate account – and automatic transfers – for each. That way, you automate your saving and spending so it becomes easy to save: it’s that simple.

Step 1: Track how you’re spending now
For a week, or better yet, a month, track your spending. You could log this manually in an app or sync one with your bank account, but actually, many banks in Australia and New Zealand have this function built in to their online banking already, categorising all your transactions for you. However you choose to do it, you’ll soon see trends emerging, and you’re ready to move onto the next step.

Step 2: Choose your categories and decide how much goes in each
Once you have all your info, it’s time to come up with a few broad categories that reflect a realistic picture of how you want to spend and save. For example, you could have categories like rent or mortgage and bills, emergency savings, groceries, eating out, fun money, travel savings and debt. Less is definitely more – fewer categories makes for a simple budget that’s easy to stick to, making it easier to save. Once you’ve set your buckets, decide what percentage of your income needs to go into each. Assuming you’re not spending more than you’re earning, this needn’t be vastly different from how you’re spending now.

Step 3: Open an account for each bucket
With a different account for each type of spending and saving, you’ll know exactly how much you have in each bucket. Many financial institutions offer an option for multiple accounts linked together, and you can even give them customised names so you can see, at a glance, how much you have in each of your ‘buckets’.

Step 4: Set up your automatic transfers
As with many things in life, set and forget is the surest path to success. Make sure you set up direct debits for each of your buckets so your money is moving where you need it without you needing to think about it. Many companies will let you split your salary this way, or you could have all your income go into one account to begin with, with regular transfers set up to move money between accounts automatically.

Step 5: Regular check-ins
Whether monthly or quarterly, it’s a good idea to check your buckets regularly to make sure they’re where they need to be. That way, if you find one overflowing while another is almost empty, you’ll know it’s time to tweak your transfers to better match your spending and saving goals.

So what are you waiting for? It’s time to let your savings take care of themselves. Get started on your money buckets to see how automating your finances can help you save towards your dreams.

The post This could be the secret to better budgeting appeared first on Credit Simple NZ.

Ready to change your money mindset? These fantastic money podcasts may be just the inspiration you need…

My millenial money
This Aussie podcast is perfect if you want to sort out your financial future but aren’t sure where to start. Join Glen James and John Pidgeon for a laidback discussion on heaps of financial themes particularly relevant to those in their 20s, from HECS debts to ‘rentvesting’.

So Money
In this daily podcast, financial expert Farnoosh Torabi interviews people from all walks of life about their finances and answers questions from listeners. Perfect for if you need a bit of inspo to start the journey towards your financial dreams.

Afford anything
This is a practical podcast for anyone who wants to improve their decision-making around money. Paula Pant interviews financial experts as she blogs her way to financial freedom, covering themes like financial independence, wealth creation, retiring early, and how to afford your big goals.

Planet Money
Focussed mostly on the US economy, NPR’s Planet Money tells stories that explain real-world economics in an entertaining and engaging way. Its genius lies in how it can make seemingly boring topics fascinating, diving deep into the money behind everyday things.

HerMoney
Financial editor of NBC’s ‘Today’ show, the best-selling author of 11 books, Jean Chatzky talks personal finance for women, covering the intersection between money and career, family, relationships and more.

The Tim Ferris Show
More of a business and self-improvement podcast, but with a big money focus, Ferris interviews top entrepreneurs to find out what makes them tick. Each episode, he chats with experts in their field to find the routines, habits and strategies that make them successful.

These are just a handful of our favourite financial podcasts, but there are plenty more podcasts (and blogs) out there that can help you take the first steps to financial freedom.

What are some of your favourites?

The post 6 personal finance podcasts to change your money mindset appeared first on Credit Simple NZ.

The post 7 money saving tips you can complete in 10 minutes each appeared first on Credit Simple NZ.

If the school holidays have you fearing those dreaded words, ‘I’m bored!’ but you know you don’t have cash to spare, never fear – a quick Credit Simple brainstorm is all you need.

Check out our top 5 tips to help you survive – and thrive – during these school holidays, with your budget and savings well and truly intact.

1. Get out and about – for free
Whether you’re planning a vacation or a staycation, the school holidays are the perfect time to get out and enjoy heaps of free and low-cost activities on offer. From kid-friendly museums and galleries, to parks, adventure playgrounds, libraries, national parks and even that ol’ favourite, the beach, you could easily fill a whole day (and ensure the kids are well and truly tuckered out) for the cost of a car trip or a bus ride and your byo sandwiches.

2. Try backyard camping
An old-school family holiday might not be in the budget this month, but there’s no reason you can’t drag the camping gear out of the garage, or borrow some from a mate, and have your own backyard camping adventure. This idea is perfect if you small kids who might not be used to being away from home – their beds are just metres away. There’s no stressful car ride required, and it’s a risk-free option that won’t be spoiled by bad weather.

3. Enjoy a crafternoon at home
This trendy pastime (a combo of the words ‘craft’ and ‘afternoon’) is not just for pinterest-obsessed twenty-somethings – in fact, it’s beyond kid-friendly. Especially if the arvo looks gloomy, a bit of craft can go down a treat with the young and young at heart. The best bit? There’s not much skills and very little money involved. Crafternoons can include painting, drawing, origami, The only limit is your imagination – google ‘crafternoon’ and you’ll see what I mean.

4. Have a movie marathon
Find me one kid that doesn’t love to veg out in front of their favourite movie or binge their fave tv show with a bowl of freshly-popped popcorn on the coffee table. Whether you fire up those streaming services or crack out the DVDs, each kid can pick their favourite movie or show for some much needed family chill time. If it all goes well, why not make it a regular event?

5. Go bush
Tramping is a brilliant way to explore the natural world on a budget. Just grab the sunscreen, insect repellent and plenty of water, load up the car with the bits ‘n bobs you need for a BBQ or picnic, and hit the road for an awesome family day out. Pro tip: make sure you let someone know where you’re going and when you plan to be back.

Hopefully these 5 cheap school holiday activity ideas get you thinking of even more fun, free ideas to keep the kids occupied.

The post 5 super fun (and frugal) school holiday hacks appeared first on Credit Simple NZ.

The post-Christmas season can be a tough one, and our data shows Kiwis are more likely to let their credit bills languish unpaid at this time of the year compared to any other. If you’re anything like the average New Zealander, you’re probably feeling the effects of spending up large in the lead-up to the festive season and in the wake of Boxing Day sales.

Usually around 6.4% of credit card accounts go past due without being paid, but in the January to March period, this jumps to 7.6%. It might not sound like much, but in a nation with $6.6 billion outstanding on credit cards, that little extra interest-incurring period adds up to millions in extra interest payments for consumers.

“It’s easy to get caught up in spending over Christmas, but if you’ve used credit to get through the holiday period, the next few months are crucial to ensuring your credit health,” says Credit Simple CEO David Scognamiglio. 

“Late or missed payments on any borrowed funds will damage your credit score and could prevent you from getting credit again, so it’s crucial to make a plan to pay back and credit consistently and on time to keep your credit score healthy.”

And here’s what you’ve been waiting for: our five top tips for recovering from a post-Christmas debt hangover:

Shop around for a better deal on interest

Chances are you could be getting a better deal on any loans, credit cards, mortgages and even utilities, you just need to shop around. If you’ve been paying your bills on time and have a good credit score, credit providers will be eager to give you a handsome deal since you’re a good risk. Negotiate with your bank and current phone, power, insurance and internet providers to see if they can offer you better rates, and see what their competitors would be willing to offer you, too. You might be surprised at how much you could save in the long run in fees and interest. 

Consolidate your debts

Debt consolidation is the process of rolling or “consolidating” a number of different debts into a single loan or credit card, often with a lower overall interest rate. This can help you manage your money better by paying off a single amount each month. Debt consolidation loans and Balance transfer or low rate credit cards are the most common way to do this.

Limit credit applications

Each time you apply for credit it leaves a record on your credit file, and this typically makes your score drop. If you applied for credit before Christmas and now you’re going back for more, it’s going to pull your score down. There’s nothing wrong with changing your credit providers – in fact it can save you money – just make sure you’ve done your research and only apply for the best deal, rather than applying for whatever you can and then deciding on which one you want later.

Pay high-interest debt first

Prioritise your loans and ease the pain of interest by paying off the debt that’s incurring the most interest first. It can save you a lot of money in the long run.

Consistency is key

Paying your bills consistently and on time is the best thing you can do to make sure your credit score stays healthy. Set up automatic payments to pay bills straight away and your score will thank you. Pay more than the minimum amount required on loans and credit cards if you can too.

Avoid a default

If you’re feeling under pressure to make debt repayments, talk to your credit provider, don’t just ignore it and miss payments – your credit score and file will suffer. You may find your credit provider can put you on a different payment plan, making it feasible to meet your repayment obligations.

The information in this blog post is general in nature and does not constitute personal financial or professional advice. It is not intended to address the circumstances of any particular individual. We do not guarantee the accuracy and completeness of the information and you should not rely on it. Before making any decisions, it is important for you to consider your personal situation, make independent enquiries and seek appropriate tax, legal and other professional advice.

The post Got a Christmas debt hangover? We’ve got tips to help appeared first on Credit Simple NZ.

The post-Christmas season can be a tough one, and our data shows Kiwis are more likely to let their credit bills languish unpaid at this time of the year compared to any other. If you’re anything like the average New Zealander, you’re probably feeling the effects of spending up large in the lead-up to the festive season and in the wake of Boxing Day sales.

Usually around 6.4% of credit card accounts go past due without being paid, but in the January to March period, this jumps to 7.6%. It might not sound like much, but in a nation with $6.6 billion outstanding on credit cards, that little extra interest-incurring period adds up to millions in extra interest payments for consumers.

“It’s easy to get caught up in spending over Christmas, but if you’ve used credit to get through the holiday period, the next few months are crucial to ensuring your credit health,” says Credit Simple CEO David Scognamiglio. 

“Late or missed payments on any borrowed funds will damage your credit score and could prevent you from getting credit again, so it’s crucial to make a plan to pay back and credit consistently and on time to keep your credit score healthy.”

And here’s what you’ve been waiting for: our five top tips for recovering from a post-Christmas debt hangover:

Shop around for a better deal on interest

Chances are you could be getting a better deal on any loans, credit cards, mortgages and even utilities, you just need to shop around. If you’ve been paying your bills on time and have a good credit score, credit providers will be eager to give you a handsome deal since you’re a good risk. Negotiate with your bank and current phone, power, insurance and internet providers to see if they can offer you better rates, and see what their competitors would be willing to offer you, too. You might be surprised at how much you could save in the long run in fees and interest. (Check out our offers by getting your credit score right here on Credit Simple.)

Limit credit applications

Each time you apply for credit it leaves a record on your credit file, and this typically makes your score drop. If you applied for credit before Christmas and now you’re going back for more, it’s going to pull your score down. There’s nothing wrong with changing your credit providers – in fact it can save you money – just make sure you’ve done your research and only apply for the best deal, rather than applying for whatever you can and then deciding on which one you want later.

Pay high-interest debt first

Prioritise your loans and ease the pain of interest by paying off the debt that’s incurring the most interest first. It can save you a lot of money in the long run.

Consistency is key

Paying your bills consistently and on time is the best thing you can do to make sure your credit score stays healthy. Set up automatic payments to pay bills straight away and your score will thank you. Pay more than the minimum amount required on loans and credit cards if you can too.

Avoid a default

If you’re feeling under pressure to make debt repayments, talk to your credit provider, don’t just ignore it and miss payments – your credit score and file will suffer. You may find your credit provider can put you on a different payment plan, making it feasible to meet your repayment obligations.

The post Got a Christmas debt hangover? We’ve got five tips to sober up your bank balance appeared first on Credit Simple NZ.