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Here are a few tips to help you ring in the new decade with as little debt as possible.

1. Reconsider whom you need to shop for

At different points in our lives, it makes sense to shop for certain people and not for others. For example, when our nieces and nephews are young, gifts are appropriate but when they’re adults, maybe a heartfelt card is enough.

Go through your list and decide whom you really need to shop for and who can make do with a heartfelt holiday wish.

2. Set yourself a limit – and stick to it

Now that you know who you need to shop for, set yourself a budget based on what you can reasonably afford. Set aside one “money bucket” for gifts, remembering to factor in the cost of wrapping paper, tape, greeting cards and the like.

Consider a separate money bucket for food, drinks and entertainment. This includes eating out, coffees, treats, parties, costumes and movie outings.

Once you have your budget, stick to it. The whole point is to spend only what you can afford to spend.

3. Consider what people actually need

It’s often the case that people don’t really need, or even want, new expensive gadgets in their lives. If you consider what each person really needs, you may uncover creative and inexpensive ways to fill their holidays with cheer.

Maybe you can surprise your nostalgic mother by transforming all your old childhood photos into a digital scrapbook, or give your achy partner a massage based on a technique you learned from YouTube.

4. Shop online

If you do end up with a few physical goods on your to-buy list, consider buying them online. Not only can you often find better deals, but you’re also less likely to incur unexpected or hidden expenses like petrol, parking, eating out, that special gift to yourself and all those pumpkin gingerbread lattes.

But online shops want your dough just as much as brick and mortar shops do, so make sure you don’t get sucked into all the online sales and marketing gimmicks. Make sure you shop around for the best deals and buy only what’s on your list.

5. Do a Secret Santa

Secret Santas aren’t just for the office and the school yard; they’re great for families too. So if you really want to save money this holiday season, and help others do the same, consider a great big Secret Santa.

Ask everyone to write down their name on a slip of paper, along with two or three items they need (or they can simply write “surprise me!”) and throw those into a hat. This way, everyone can save a little money and no one is left with a useless gift they’ll just toss later.

6. Go potluck

There’s nothing wrong with wanting to entertain guests at your home over Christmas or New Year’s. However, there’s no reason to splurge on all the food yourself. If you decide to throw a party, go ahead and cook a couple of your specialty dishes, but ask all your guests to bring something too.

7. Spend New Years in

You don’t need us to tell you how expensive it can be to pay for food, drinks and cover charges just to attend a fancy New Year’s party. Why not hang some mistletoe at home and have your party there?

You won’t have to put up with obnoxious strangers and you won’t have to stand on milk crates to see the fireworks on your big screen and most importantly food and drinks will be a fraction of the price.

Eat, save and be merry!

With some foresight and a little self-control, you can get through these holidays without burying yourself into a pile of debt you’d otherwise spend the next year digging yourself out of.

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.

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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.

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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!

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Saving money and cutting corners is a thoroughly enjoyable way to pass the time, not only for the cash you get to keep but for the smug feeling of satisfaction at having outfoxed the system.

Unfortunately sometimes corner cutting backfires. Our Scrooge-like urge to save a buck by doing something ourselves, instead of paying an expert to do it properly, actually costs us more – not necessarily just in money, but in time and effort.

This makes me feel most foolish. I don’t particularly enjoy this and I imagine you don’t enjoy it either, so today, gentle reader, we’re going to take a look at some the things we should consider paying someone else to do.

Moving house

The idea of paying someone to move the contents of your house when you’re young, fit and all your possessions cost less than your laptop is laughable. However, when you own heavy, expensive or irreplaceable items (eg a piano, priceless Matchbox car collection, many urns containing family ashes) and your friends and family don’t have the time or the inclination to devote an entire Saturday to being at your beck and call, possibly enduring your rage as they drop things, break things, don’t understand your directions – well, it’s worth paying for a mover.

Movers are quick and efficient, they know how to back a truck and they’ll take half the time. It might look more expensive up front, but include the cost of the truck and petrol, plus your time, your friends’ time, the cost of the breakages and friendships, not to mention general peace of mind – and it’s worth it.

Mortgage brokers

If you’re not a numbers person, if you don’t have confidence when talking to the bank about interest rates, if you’re not prepared to talk to several banks and play them off against each other – then a mortgage broker will save you time and angst – and probably money as well. Comes with added bonus of sticking it to the bank. Metaphorical pulling of a finger is worth quite a bit, actually.

Lawn mowing

The cost of a lawn mower, and the regularity with which we move these days, means it’s not necessarily worth purchasing one given you can’t guarantee you’ll always have a patch of grass to mow, or somewhere to store the mower. Paying someone else to mow it means you also steal back time and have one less thing on the weekend to-do list, which leaves room for the important stuff – like eating cake.

Cleaning

Cleaning isn’t necessarily hard to do, it’s just unpleasant and time consuming and often this leads to a half-hearted effort and drinking of gin. So if you have the money and you hate vacuuming, mopping, scrubbing and so on, then paying someone to clean your home is going to save you time and gin and probably make you deliriously happy, which in itself is priceless.

Putting your best foot forward

By this I mean the hair cutting, back waxing, bouffant tinting we all indulge in to titivate ourselves. If you’re skilled enough to do this yourself then, pray, please continue – but for everyone else, it only takes one terrible, humiliating home haircut or wax to remember why we pay others to do it for us.

Online supermarket shopping

Are you a very busy person who is easily seduced by bright colours and marketing? Then online supermarket shopping is for you. Buy only what you need in the comfort of your own home. Do not be sucked in by the attractive person hawking delicious wine, or by the deal on something you usually never buy but you saw it and it looked interesting and you were starving so …

Also, avoid the rage brought on by checkout queues and supermarket parking areas, where apparently madness and competition for parks replaces good manners and common sense. Shop online and save time, money and sanity.

Anything requiring a skill you don’t have – and probably won’t get

From building to sewing to gardening to car repairs and chimney sweeping – it’s worth paying someone who knows what they’re doing to do it right first time. Of course, if you have a lot of time on your hands and you genuinely want to know how to do something, then, sure, start watching YouTube tutorials and go for it. But if you need something fixed, your knowledge is marginal and you know you’re inclined to cut corners, meaning your fix may be a short-term one, then it’s time to pay the expert.

You may still be thinking, but, Penelope, I could do most of these things myself. So ask yourself the following questions.

• Will you do it poorly?
• Will the money you initially save be outweighed by the cost of fixing up your mistakes?
• Will you resent the time you spend doing said task?
• And, most importantly, will all of the above make you furious?

If the answer to those is yes, then perhaps it’s time to spend in order to save.

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You, your wallet, and your spare change walk into a bank. What, were you expecting a punchline? Well, these isn’t one! Your financial future is no joke. That said, the wealth of savings options available to Kiwis these days will have you laughing all the way to the bank. Or credit union. Or investment company.

Or or or… do you see the problem yet?

Saving money is always a smart idea. But we reckon being spoiled for choice still presents its own set of challenges. You can cross the piggy bank off the list. It’s so pre-teen. Under the bed is also a little doomsday-prepper for our tastes. As for the rest, which option are you going to choose?

Answering that question doesn’t have to be difficult. In fact, we reckon if you keep these three things in mind it’s easy as.

1. It’s a matter of risk

Not all savings options are created equal. Some put your money at more risk than others. Think of these like the houses from the children’s fairytale ‘The Three Little Pigs’. Some protect your money with straw and sticks. Others are as sturdy as that house of bricks that stood strong no matter how much the Big Bad Wolf tried to blow it down. Phew! Whether you’re carefree or crave adrenaline, there’s a saving option out there to match. Your choice ultimately comes down to a game of risk versus …

2. It’s a matter of reward

Just like the clickbait headlines say, here’s something that may shock you! Saving money isn’t only about, well, saving money. Gotcha! We reckon you work hard for your money, which is why saving is about flipping the script and getting your money to work for you. That’s right, it’s time to multiply! Your savings, that is.

Imagine this scenario. You want to take the family on holiday next year. You have the cost of the flights covered, but what about spending money? You don’t want to take out a loan. In fact, you just got finished paying off your outstanding debts. Doing the smart thing, you set money aside and start saving.

By the time you’re boarding your flight, you’ll have spending cash to spare. And all of that without lifting a finger. How long you let your money work, though, is…

3. It’s a matter of time

It’s never too late to start saving. But how long should, could, or can you be saving for? It all depends on what makes the most sense for your money!

Retirement and other long-term goals require long-term thinking. Consider a scenario where you’re in your early 30s. You want to give your future self a helping hand, so you set money aside in a term deposit for five years. You also invest in some shares.

With time on your side, you can wait for the term deposit to reach maturity. You’re also able to ride out the ups and downs of the stock market so you can buy low and sell high without any time pressure.

However what about short-term savings? You get less flexibility, but more immediate rewards. Imagine in this case that you bought shares to help fund a mortgage on a house you plan to buy in a few years. Only, now the day has arrived, they’ve sunk harder than our hopes of winning the World Cup (ouch!). Time isn’t on your side, so you’re forced to sell at a loss.

Keep your timeframes in mind, and you’ll avoid hurdles like this. In this case, you could open a savings account or short-term deposit and maximise your returns while minimising your risk.

So, what are your options?

Low risk, low reward, any time

Savings accounts

Savings accounts make saving oh so easy. You know, the ones with variable rates. These accounts offer a small return for minimal risk. They also incentivise the savings process by reward you for sticking to your goals. Oh, they also won’t judge you too harshly if you dip back in every now and then. We all need to treat ourselves sometimes, right?!

Low risk, guaranteed rewards, with a wait

Term deposits

Term deposits will have you shouting ‘Lock it in, Eddie!’. The interest rate, that is. Unlike savings accounts, they offer a fixed rate over a set term. As these term deposit guides explain, that’s a guarantee you’ll be lucky to find this side of an infomercial. Hands off, though! You won’t have access to your money till the term is up.

High risk, high reward, but is it worth the wait?

Property investing, shares, and stocks

Earning a high return on your savings is a constant game of risk versus reward. Maybe that’s why they call it ‘playing the market’? Whether you have the creative flair for renovating or a knack for buying low and selling high, property, shares, and stocks offer some of the highest returns on your investments. Just make sure you’re aware of the risks.

At the end of the day, that’s what effective saving is all about. It’s not just setting money aside, it’s about doing so in a way that suits you and your financially savvy lifestyle. What that means, exactly, differs from Kiwi to Kiwi. So which one comes out on top for you?

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