“We often get quite embarrassed to talk about our money, and especially to even hint that we might not have all the budget in the world to do whatever we want, which is obviously ridiculous,” explains Cook. “To take back that power, especially at a time when so many people are struggling, is brilliant.”
New data released by Stats NZ shows the cost of restaurants and ready-to-eat food has increased 6.7 per cent in the past 12 months, with alcoholic drinks up 5 per cent and non-alcoholic beverages up 4.3 per cent.
Petrol prices have also risen 12 per cent over the past year and domestic air travel has increased by 7.7 per cent. Supermarket grocery food prices are up 3.9 per cent, but fruit and vege prices have fallen 9.3 per cent. So while we may be saving in the fresh-produce department, this fall is offset by inflated prices across the rest of our household expenditure.
Trying to stick to a budget in the present financial climate may seem fruitless, but as Cook points out, it’s important not to overlook the impact that making small changes to your spending habits can have on long-term financial success.
“There are very few things in life that are silver bullets, and if you can start making little changes, even if it’s 5 bucks a week into your savings, they build up faster than you think,” she says.
“I think a lot of people have seen this with KiwiSaver; an amount that doesn’t look big, builds up quite quickly. But it also just flexes that muscle of paying attention to money, seeing where things are going. And then you start to see other opportunities where you can make small changes, and they all stack on top of each other and snowball.”
Te Kahukura Boynton knows first hand what it’s like to be a broke university student. After choosing to take control of her finances and seeing the benefits of her own version of loud budgeting, she launched her business Māori Millionaire in 2022. She now uses her platform to share her insights and tips on financial literacy and empower Māori to become financially independent through her community of over 35,000 people from Aotearoa and abroad.
“People in my close circle all know that my financial goals are really important and so I hardly have to justify not wanting to do things for a financial reason,” says Boynton. “Instead, they join in on the journey and try to find free or cheap activities for us to do.”
Boynton says when it comes to creating a budget, people can often feel scared by the thought of having to become strict with their money, but by setting aside pocket money or fun money, you don’t have to restrict yourself completely or opt out of all social activities.
“A budget is simply a plan for your money, helping you to stay on track with your financial goals,” she says. Boynton also recommends undertaking your own financial audit each month to ensure you know exactly where your money is being spent.
“My own financial audits consist of going over the last month’s income and spending, making an aspirational budget for the month ahead, and setting one realistic goal each week, such as: ‘This week, I am not going to buy takeaways’.”
Boynton believes the best budget is the one that works for you, and if you need help to get started, she suggests joining Facebook groups that discuss ways to save money, or utilising apps such as Gaspy, which helps you find the cheapest fuel in your area, and Grocer.nz for supermarket price comparisons.
Online courses such as Cook’s Money Made Simple are another way to improve your financial literacy and help get you on your way to making small money wins and changing your mindset around savings and money.
“Sometimes, when you literally have nothing, your mindset is the only thing that can keep you going. This is why I believe that mindset is so important,” says Boynton.
“The first step for me improving my mindset was unfollowing all the people on social media who were not helping me achieve my goals. I started following accounts that were about wealth, success, business and wealth mindset. I was strict on what I allowed to be around me; people, content and ideas. They all affect you, whether you notice or not.”
