Hello! Today, I have a great guest post from Ed @ Money Saving Kiwi

Ever known someone who got a raise at work, then started to
increase their lifestyle – buying a better car, going out for more
meals out, etc? I do, because I was one. I worked hard and got
a promotion, so therefore I deserved to treat myself! Right?
Wrong! It ended up leading to debt.

RELATED: 7 Easy ways you can save money

Following, years of financial mistakes this is what, we as a
husband and wife team (we were very separate with finances
before – another mistake) do now:

  • I got a promotion this January and increased my Kiwisaver (New Zealand’s voluntary retirement savings scheme) contributions from 3% to 10%. It has meant virtually no extra money in our pocket today but will in the future. Which leads me on to the next one…
  • Delay Gratification – waiting before making the big purchases has worked wonders. We used to use buy now pay later schemes and get what we wanted (sometimes on impulse), when we wanted. Now we wait 24 hours. Others wait longer. Whatever works for you.
  • Have more than our full-time salaries as our income. Side-hustles that we do are hosting international students, complete tests on usertesting.com, mystery shop, part-time work e.g. my wife used to spend 2 hours after work walking a lady with dementia for three days a week, sell stuff on Facebook Marketplace. We are always on the lookout for different income streams and testing what works for us.
  • Save for things we want – e.g. we only go on holiday if we can pay for it in advance (apart from spending money which we save up before we go).
  • Spend time online entering competitions – o.k. so this one doesn’t guarantee anything but whilst my wife is watching her soaps on TV, I enter competitions (in the last six months I’ve won $250 restaurant voucher and over $100 worth of honey – not a lot but it has certainly helped).
  • Never ever ever taking on consumer debt (the only loan we would take out is a home loan one) – this one we’ve learnt through making our own mistakes, recently we worked out that on just one of our credit cards (and yes we had a few!) we paid just over $6000 in fees and interest! And we 99% of the time paid on time! One of these credit card mistakes I talk about here.

In a nutshell, the gap between what you bringing in (income streams)
and what you are spending needs to be as wide as you can possibly
make it, whilst maintaining a fulfilling life. Think about your purchases,
try and reduce your direct debits and improve your ability to generate
extra income.

 I’ve set up my own website to help people from New Zealand and beyond take control of their finances. I’ve been inspired through mistakes I’ve made in the past and would love to stop others from making those same errors. – Ed @moneysavingkiwi

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