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As the long weekend kicks off, it can be all too easy to fill your time with fun and frivolous spending. But before you know it, Monday night rolls around and your bank balance is looking more than a little depleted.

Luckily, it doesn’t take much to reset your default setting from ‘spend’ to ‘save’ for a few days, and the savings can be pretty significant. Read on for our tips to boost your savings in just a few days.

Skip 1 thing
You probably have a pretty good idea of which is your biggest discretionary spend. But what would happen if you skipped it, just for this weekend? It’s easier than you think.

For example, for many of us, a big money suck can be eating out. With 4 days off, you could find yourself eating out a couple of times a day and think nothing of it. With even your local cafe or Thai restaurant setting you back at least $20 a head. If you’re a couple or a family, you could save hundreds of dollars.

Only use cash
Studies show that when we use cash rather than cards, we feel the loss of money more. This is because cash is a physical, tangible thing you have to give away to pay, while credit and other payment methods feel hypothetical or even non-existent.

Switching to cash not only makes it easier for you to mentally track your spending, but if you take out a set amount at the beginning of the long weekend, it makes it much easier to stick to a budget.

Take the zero-spend challenge
This one’s a game changer. For a single day (or even the whole weekend if you feel like an epic savings challenge), don’t spend a single cent and see what happens.

As an added bonus, you’ll find that (as long as you have a well-stocked fridge and ready access to a car or public transport) that the possibility for free activities are almost limitless. Make your own coffee, go for a run, fire up netflix, have some friends round or chill in your local library. It can be a really fun experiment.

Apply the ‘clean slate’ principle
If you spent Friday-Sunday on a bit of a spree, that’s actually ok – studies show that at the beginning of a week, month or any time that feels like a ‘fresh start’ is the perfect time for habit change.

With that in mind, Monday or Tuesday may be the perfect time to set up a new budget or set and ambitious savings goal, especially after a few days of spendthrift-madness.

So go on, take the challenge – enjoy a low-spend long weekend. It could save you heaps!

The post How to enjoy a low-spend long weekend 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.

Do you get worried when you receive your monthly power bill? Electricity and gas prices can be eye-wateringly expensive for some people. What’s more, the big companies want, naturally, to make as much profit as they can.

There are alternatives.  In fact 48 brands from 32 parent companies are vying to offer their service to you. Some have quite different business models to the big incumbents.

Did you know, for example, you can sign up to a power company that sells to you at cost? Yep. Some smaller providers aren’t looking to pay profits back to shareholders.

New concepts – doing it differently

A lot of smart people are looking for new ways to offer power. There are many smaller for-profit power companies that their users swear by. And there are larger ones that work hard for their money. I decided to take a look at one of the offers. Armed with my bill I ran the numbers through the calculation and it said I would save $11 a month, which is $132 per year. Not bad for a few minutes work.

Pros and cons of using a small power company

The upsides include:

• Cheap power. You know that you’ll never pay for big salaries, expensive advertising, door-to-door sales people and so on.
• No fixed-term contracts. If you’ve ever shopped around for power you’ll know they sign you up for one- or two-year fixed deals with pricey break fees.
• Big power users bonus. With some companies you pay the same fee whether you’re a big user or a tiny user of power. That really benefits big households who are paying a fixed fee instead of a margin on every kilowatt used.
• Supporting the little guy. If you don’t like big corporates, then you can support smaller locally run companies by signing up to one of the other not-for-profit suppliers.

There are always downsides:

• Floating prices. Some companies have prices that aren’t fixed. They move with the “spot prices”. So if there is a weather or other event that increases the bulk price, then it’s passed onto you and me immediately. Sometimes when these spot prices soar, as Flick Electricity has found out, the customers get a bit disgruntled.
• It only provides electricity. I’ve come across this problem before when comparing prices with Flick and others. That means I’d need to have my gas with another company and can’t get dual fuel discounts.
• The price assumes you pay by direct debit. With other companies you sometimes get a discount for direct debit. If you are comparing prices with the gross rate at other power companies before the discount then this isn’t comparing like for like.

Ultimately power supply is a low-margin business. There isn’t a lot of fat in it for the companies despite what you and I think. That’s why if you’re regularly reviewing your bills there isn’t a lot to save by switching. If, however you’re on the same plan you were five years ago, switching to any other supplier might save you money. Introductory offers are usually far better than you could get currently.

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 Want an alternative to your big electricity provider? We weigh up the pros and cons of the small, non-profit power companies appeared first on Credit Simple NZ.

We all assume that we save money with solar power. But do we? Really?

The answer may be as clear as mud. Solar can save you money. But not always as much as you assume and the economics are changing. Even the Energy Efficiency and Conservation Authority EECA says it doesn’t work for everyone.

It costs you money to install

Solar power (or water) systems cost you money to install. I looked at one well known company, Solar King, which charges from $7,000 to $11,000 fully installed, or around $8,000 for solar water heating only the basic $7,000 kit is designed for small homes with power bills around $90 to $120 a month. Big power guzzlers who pay at least $200 to $250 a month will need the most expensive package. It takes a LOT of power bills to pay that off. Some companies (such as Solar City) offer “free panels”. This should still save you money, but not as much as you would if you owned the panels yourself because you pay for the power you receive from the panels on your roof.

That equipment has a shelf life

Have you ever noticed how appliances die as soon as the warranty ends? Your solar panels and solar inverters should last 25 years, but the warranty may be only 10 years. Other parts of the system such as the racking, or cables, could need repairs if you’re unlucky.

It only works in daylight hours

The issue is that you only get solar power during daylight hours unless you have a battery. So you can’t just divide the $11,000 by $250 and say your solar system will be paid off in 44 months.

Batteries cost big money

If you want to be able to store some of your power with a battery expect to spend over $20,000 for your entire package for a family home. As anyone who owns a car knows, batteries don’t last for ever. If a battery dies they’re not standardised as car batteries are, replacements could be expensive.

The price of power you feed back can change

Most solar systems are what’s called grid-tie, which means any power you produce that you don’t use is fed back into the grid. Owners used to be paid to 30c per kWh unit for that excess power, but now most of the big power companies offer just 7c to 8c per unit and that could drop more, making your system less economic. There are other power offers aimed directly at solar users such as SolarShare from P2 Power that could change the economics for customers.

There’s a social issue

Power companies argue that wealthy Kiwis who install solar systems aren’t paying their fair share of the costs of running the electricity network for all. If too many wealthy people pay less to the power companies, poorer citizens have to pay more. Solar power users still need to fall back on the grid on cloudy days, the companies argue, and should pay their share of maintaining the network.

The technology is improving rapidly

Every time I think of getting solar power installed, I realise that next year’s technology could well be more efficient and cheaper than the current systems. So I go back to the drawing board.

There’s a calculator

Use this independent calculator from Energywise to find out if you could save money.

I don’t want to sound negative. If you want toys such as a heated swimming pool or a spa pool, solar energy is amazing and you’re not saddled with huge power bills for water heating.

Ultimately solar versus no solar isn’t just about money either. You might just want solar power to do you bit at reducing fossil fuel usage. I have to say that this idea warms the cockles of my heart.

Make sure you get at least three quotes and you understand exactly what’s included. Not all systems are created equal and sales people can be over enthusiastic in getting you to sign up to their deal.

The post Does solar power save you money on your electricity bill? We crunch the numbers appeared first on Credit Simple NZ.

It is a truth universally acknowledged that birthdays require delicious cake with lashings of icing and a complete lack of regard when it comes to calorie intake.

However, it is a fib, unfortunately universally acknowledged as a truth, that birthdays also require presents – the rationale being that the more expensive the present, the more you love or admire the recipient.

I have pondered this matter deeply, and after accidentally smashing my annual presents budget in six months, I have collected some thoughts on the matter. Helpfully, I have broken these up into sections under well-worn platitudes.

It’s the thought that counts

We give gifts to show we care – or to pretend we do. However, while it might indeed be better to give than to receive, the ‘art’ of gift giving is more often a rather expensive acknowledgement of a relationship, than anything truly meaningful.

Top tip: Spend what you have, not what you hope you can afford. Exceeding what you think the recipient spent on you is pointless. Apparently, one-upmanship is not the purpose of presents.

Experience is everything

Rumour has it that millennials are opting for experiences over gifts, ones that look good on social media, eg sky diving on Jupiter. Despite not being millennials we decided to adopt a similar measure, albeit without the price tag and the side of narcissism. Instead of birthday presents, the birthday person chooses the movie. Sometimes we go gold class for the comfy seats, sometimes we just get a glass of wine.

We are well aware some of our acquaintances think this practice is cheap. Fortuitously we care little for their opinions, bred as they are from society’s ludicrous ideals in regards to what is acceptable.

Top tip: Do something, don’t give something.

Gifts that keep on giving

Buying presents on le plastic fantastic when you can’t afford it means that credit card debt is unfortunately the gift that does indeed keep on giving in the form of interest owed.

As a somewhat extreme alternative, have you considered the other gift that keeps on giving? It’s nothing at all. Literally nothing. You give nothing, they give nothing in return, you both save money. Win win!

Announcing you’re not doing birthday presents anymore can be very liberating. It will probably also irk some chums because some people really do like to give gifts. And your decision in no way prevents them from continuing to. They may just need to check if their fondness for giving is entirely dependent on their fondness for the expected reciprocal gesture.

Top tip: Send cards, send texts, make calls, use telepathy to wish friends and family a happy birthday, many sassy returns this year – but try giving nothing a go and enjoy the literal lack of interest your credit card shows you.

Random acts of kindness

The best gifts are random ones – it’s not your birthday, and the gift might not be particularly expensive but it is thoughtful, you are delighted with it, and you are touched – and there is no need to reciprocate. Unless you want to. In your own time.

Top tip: Be haphazard with presents. It means you can forget birthdays and still look like a good person.

Safety in numbers

Like to give gifts but struggle on the affordability front? Don’t go it alone. Gather up a threesome, a foursome, a gleeful orgy of friends and all put in small amounts of cash to get a super amazing, you guys are the best, sort of present – instead of you all buying average or awful gifts from less than salubrious retailers and suffering the inevitable, awkward and very literal ‘Oh, wow. You really shouldn’t have’.

Top tip: Sometimes it takes two. Or three. Or four. Or – you get the idea.

Gift with purchase?

Is the gift with your purchase a high five from the land of credit at the top of the magical banking tree? Purchasing presents is probably not why credit cards were invented, but it’s why using them to buy gifts to prove our love and affection is a terrible, terrible idea.

Today, my gift to you, dear reader, is a question you need to ask yourself before you next splurge on a present: Can you say ‘I love bank fees’ with the same amount of enthusiasm that you say ‘I love you’?

The post How to lose interest in presents (yes, it can be done) appeared first on Credit Simple NZ.

It’s October when I write this, which means it’s been Christmas in retail land for about six months now. While a couple of weeks off in summer in honour of Baby Jesus’s birthday is an attractive proposition for most of us, it can also be a financial time bomb, set to go off when the bills arrive in January or February.

So how can you make it through the silly season without spending silly amounts of money? Short of converting to a religion that considers the whole Christmas malarkey a bit ridic (or inventing one whose entire Christmas ritual consists of giving each family member a single boiled egg) here are a few ways you can have a great Christmas and summer break, without sending your bank balance into meltdown.

Gift rules rule

This one is especially handy if you have a big family. Instead of everyone buying everyone else gifts, consider making it a one-to-one thing. Some families put everyone’s names in a hat, then take turns drawing the one person each of them will buy a gift for. For extra points, set a sensible cash limit and stick to it. Bonus: choosing a gift for just one person means you’re more likely to choose something they’ll actually like.

Skip the lines by shopping online

Shopping malls at Christmastime are a happy wonderland of laughter, snowflakes and magic – as if the Tom Hanks movie The Polar Express took retail form for six magical weeks. Kidding! From carpark awfulness to the sad fatty smell of thronged food halls, real-world Christmas shopping can be hell. Luckily, smart scientists in the 1970s invented the internet. So if you’re clever, and get onto it now, you can shop around and find gifts that suit your family and your budget. Once you’re chosen, try New Zealand websites PriceSpy and PriceMe to see who’s got that must-have gadget for the best price.

Bake it till you make it

This one’s a school holiday activity and a gift solution rolled into one. Biscuits, fudge, shortbread… they’re all way easier to make than MasterChef would have you believe, and the ingredients to whip up a batch cost peanuts (or walnuts, if your recipient is allergic to peanuts). The best take we’ve seen on this is a batch of biscuits wrapped up with a vintage Edmond’s Cookbook ($5-10 or so at your nearest second hand bookshop or Trade Me). You can get the recipes online too at the Edmonds site.

Go sale-ing

The Warehouse might have put a bit of a dampener on this classic Kiwi money saving tactic with its new policy of having no more sales, but convincing the family that they’ll get twice the present bang for your buck by shopping on Boxing Day can be a winner. See our note above about shopping mall Hell though…

Staycation and save

Out of town or overseas summer holidays can cost a bundle. Don’t forget though, you already live in one of the world’s favourite tourist destinations! (Unless you’re reading this in Lower Hutt, obviously.) People from all over the world dream of coming to New Zealand for their holidays, so spending a week or two as a tourist in your own town makes a lot of sense. Do what the tourists do: check out this page on TripAdvisor to see what’s worth flying 20,000km for (and you can just take a bus to get to).

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