How have YOU improved your financial situation?
02 Jul, 2023
In my last blog post, where I was giving away a bunch of books on personal finance, I gave you two ways to enter. You could either just click enter and get on with your day, or you could take a moment to answer my wide-open question, “Tell me in 100 words or less how you have improved your financial situation”.
I honestly thought most people would just enter to win the books without taking the time to write a response. Gosh, was I wrong! We had almost 300 entries, and my inbox quickly filled up with over 260 fantastic responses, and I’m sharing all of them below. Yep, all of them. And no, of course, I don’t expect you to read them all! But dip in and out and be as inspired and encouraged as I was. I thought too that perhaps, in the future, if you are needing a bit of a motivational boost, come back to this post and have a read, and know that you are surrounded by others who also want to make their financial situation stronger.
The standouts to me are the changes people have made in the last couple of years. Covid and the resulting economic uncertainty have been the kick up the butt that many people needed to launch into action. I loved reading how small yet consistent actions improve people's feelings about money and directly impact how much money they actually have. I love hearing the stories of people who have thrown everything they knew about money out the window and started fresh, just as much as I like hearing how the most minor tweak (such as increasing a KiwiSaver contribution) is all it takes to reset your path.
The profound impact my blog and podcast have had, the success of sinking funds, and the sheer relief of an emergency fund are themes that come up again and again. As do references to budgeting and The Barefoot Investor, who proves to have consistently given people a plan to follow that works. The message that good information is key comes up constantly, as does the impact of educating yourself. If you don’t know where to start with your money, I think that reading the varied responses below is going to point you in the right direction and will show you that you don’t have to reinvent the wheel; just cherry-pick the ideas below and use them yourself. Follow up on the links, tools and resources that are constantly mentioned and start to educate yourself.
Another theme was from those who feel calm and in control about their finances, which is how I feel about ours, and it means that when tougher times hit, you can cope a whole lot better. I love how many of those people shared how they used to be a mess but no longer are.
As the responses rolled in and I was editing them for publication, I recognised many names from people that I’ve met, emailed, and spoken with over the years. Although I’ve not published any names, I just wanted to say a special thank you to every single one of you for your updates which give me a little snapshot of how you are progressing. I don’t have time to comment or respond to each one, but just know that you are the reason I keep blogging
Read on to learn what others around you are doing with their pūtea. I have lightly edited responses for spelling and punctuation but otherwise left them alone. Except for the very first response, I have published the rest in the order I received them.
Let’s begin; I’m starting out with a doozy! If you only read one response, let this be it! When it comes to money, you can tinker around the edges and improve your situation, but sometimes it takes throwing everything you ever knew about money out the window and starting from scratch, as this person has clearly done.
Happy Saving!
Ruth
OMG, where to begin? It all started with an argument my husband and I had over our finances. I went to bed pissed off, and he slept in the spare room, probably feeling the same way. I pulled my laptop out with a vengeance and googled ‘money blogs NZ’, and that’s where I found you!! Third on the list but my new best friend. I started reading your blogs and listening to your podcasts, and before I knew it, the sun was rising, and a new day had dawned. I set about that day with an intense purpose of following your guidelines step-by-step, and when hubby came home from work, I presented my findings: Our net worth, our three-month spending snapshot, our Excel sheet budget, our debt-busting plan, the balance of our KiwiSavers and which fund we needed to change to, and our newly opened Sharesies account. I had spent the day ringing every single bill we paid and negotiating a credit or cancelling the things we didn’t need, like Sky movies. I automated everything!! That was six months ago, and we haven’t had an argument since! We’ve saved $8000 in an Emergency Fund, made lump sum payments on our mortgage, paid all our other debts, sold shit we don’t use and stuck to that budget like our life depended on it. We’ve invested $400 per month, and while it’s not much, we are excited to see how this goes over time. We’ve set our nine-year-old up with a Sharesies account and a KiwiSaver and have opened a KiwiSaver for our two grandsons; we invest $40 into each of these per month. We have savings in a holiday account, Xmas account, kids expenses account, and savings account, and the sum of all these accounts, including Emergency Fund, total $18,000. You probably get told this all the time, but you have turned our lives around for the better; not a cross word between hubby and I since. I now share your whakaaro with all our whānau. I share my Excel sheet widely and am helping all my whānau to get their money sorted. Your mahi is amazing, and we are so grateful for you. Ngā mihi nui.
Combining finances with my partner. It's easier to create a vision together for our future when our money is together! It's also a more enjoyable journey.
I budget my salary to the dollar. I have calculated my yearly costs and so know how much I need to move each fortnight for all bills when I get paid. No stress, all my bills are paid on time, and I proportion 20% to happy investing.
Deciding on an automated system of our finances, sticking with a manageable budget without depriving ourselves too much! I'm always checking what the best options are for the lowest fees and cheapest options for our investments, KiwiSaver, and power/broadband options! My wife isn't as much of an optimiser as me, but she is a wizard with Excel, so she produces our annual budget and plans for us financially! We are able to travel for two months later this year because she has created an amazing spreadsheet planning our year's budget! Very lucky we have been able to play to our strengths when it comes to our joint finances!
The best thing I have done for our financial situation is build an emergency fund. It is a game-changer! We have $8,000 sitting in our bank account, and it has changed everything. Things happen, and there's no stress about how we are going to cover it and also no fighting with my partner. PS think you're amazing! Love your podcast; thank you for all the content you create and put out for us. So helpful!
After covid brought on redundancy, relationship separation and then a short stint unemployed, I set new weekly financial goals 1. Save at least 50% of my net income (pay myself first) 2. Prioritise the rest into saving in share funds 3. Target spending on necessities 4. Set a specific $ amount for an emergency fund 5. Rather than buy presents for my nieces and nephews, I invest $50 for birthdays and Xmas in their KiwiSaver 6. Spend on activities that bring joy or can be shared with others important to me.
We budget and use sinking funds. Maintaining a budget for house reno's, holidays, and one-off lumpsum payments to the mortgage. Budgets make 'money life' easier. Due to this, we will be mortgage free in 11 years.
Over the last three years, my husband and I have no debt other than our mortgage. We have a healthy rainy day fund of $30,000 and savings buckets for a variety of things. We have planned ahead for an interest increase and are working on paying down our mortgage.
Budgeting has significantly improved our financial situation, and it has actually made us closer as a couple. We use a simple spreadsheet and track our spending against our budget. It forces us to be more intentional with our money, spending way less on things we don't care about and a little more on things that are important (like travelling to visit friends and family). Life is so much better, feeling in control of our spending and working together towards creating our dream financial future. I LOVE listening to your podcast and reading the blog; thanks for everything you do!
I have started sinking funds for upcoming expenses, school uniforms, Xmas, and birthdays. I don’t feel we have a high debt level (mortgage is the only one) but feel we could have done MUCH MUCH better before we had our three children. I may be a stay-at-home Mum now, but I’m determined for us to be on a better path. And yes, I do cringe over our past decisions; we would be in a far better position now if I had started back then. Better at the age of 37 than never!
Over the past 14 years since arriving in NZ, my financial situation has gone from homeless to homeowner. People think that emigrating is exciting and glamorous, but it's scary and expensive. Thanks to all the tiny steps I've put in place using tips from so many clever people, including you, Ruth, I'm now not phased by any financial problem that comes my way. Plus, I'm a fully-fledged citizen now!!!!
I used to fly by the seat of my pants financially before I e-met you in 2020! I enrolled in a local personal finance course as I wanted to do better and was introduced to The Happy Saver by the tutor. I have received your emails and listened to your podcast religiously ever since, and always recommend you to anyone interested in doing better with their money. I now know what our dollars are doing and regularly make tweaks and improvements based on the golden nuggets I receive from you (and the amazing Kiwis who share their stories) along the way. I can't thank you enough for doing what you're doing 😊
I'm using PocketSmith to track our spending and listening to your podcast to improve my knowledge. I've set up Sinking Funds to plan for large expenses, which is really helping. I’m 47 this year, and I really wish I had been taught more about money when I was younger and had a better disposable income and no kids!
We finally paid off our home mortgage last year. The money we used to pay each month now goes into two interest-paying savings accounts; one is instant access, and the other is 30-day. I put all my everyday expenses on an air miles credit card and pay it off each month. I have a monetised travel blog and have started an e-commerce side hustle. We have an investment property and aim to pay off that mortgage next. We have KiwiSavers but have started dabbling in separate long-term share investments.
We are very focused on a nomadic early retirement. We have decided how much we need to have saved and invested by our planned launch date, broken it down into annual goals, and track our net worth each month to see how we’re tracking. It makes it easier to stay focussed on earning more and spending less with a clear vision in mind, and by listening to your podcasts and also getting involved in a group of people who are living how we are aiming to (which was a tip from Tim Ferriss - who has done my version of success before).
Here is how I manage my money. Approximately one week prior to the 31st (my payday), I perform a rough calculation of our family's expenses for the upcoming month. Based on this calculation, I allocate an additional $1,000 into my account and transfer the rest into my Super Saver account, as the bank provides interest on the last working day. This money serves as our emergency fund, and once it exceeds $20,000, I withdraw $10,000 to invest in Term Deposits. Second thing, I am doing weekly automatic investments for my 12-year-old daughter and me in the US share market. No matter if the market is up or down, it’s automatically invested. I have invested in a high market and in between, and I have seen my return go negative. But, no matter, I continued to invest, and today again, I am showing a positive return of 18%.
Differentiate between wants and needs. You don’t need wants that you can’t afford and certainly don’t borrow for them. Coffees to go every day are detrimental to your health and keep you poor. Likewise, with takeaway food. Pay cash for everything after you’ve saved for it, buy the best you can afford as quality outlasts price every time, and only borrow for a house (the worst house on the best street usually ends up the best investment) and do whatever you can (other than electrical work) yourself. If you don’t know how then learn how. Nothing more satisfying than building your own furniture! Plus, always pay off your credit card in full every month, and make sure you’re in KiwiSaver!
Hi Ruth, since emailing you in 2021 and you giving me some harsh truths, i.e. don't borrow money for bathroom renovation, instead save and pay for it in cash, we have done just that! We have saved the money and have just signed on with a builder who will do the work. We are so grateful not to have added to our home loan debt, and to pay for this in cash is such a victory for us. We have also combined finances and are both on the same page about getting out of debt! Thanks for all your work on your podcasts; they have really helped us!
I now regularly invest each week, and my whole mindset has changed around money. I never knew how much money was a stressor until we paid off debts, started our emergency fund and took control. My biggest takeaway from all my lessons on finances is that small changes add up to big wins!!
Just the basics of setting a budget and tracking our spending with PocketSmith have made a big difference. We have stopped frittering away money unknowingly. Having goals is very motivating, and we usually manage to beat our savings targets.
(Re)creating a budget, sticking to it and reviewing it often. Then branching out into shares and maximising my KiwiSaver contributions. Also, setting up a rainy day fund and focusing on paying off the mortgage.
Focus on paying myself first. Setting up a budget that works and using PocketSmith to manage and report.
Well, you make me think about things, sometimes things I didn't know I should be interested in. Thank you so much.
We moved to get a regional area for a higher paying job and affordable housing close to the beach. Was a great opportunity to boost bank accounts and start investing in ETF's but the J.O.B only lasted three years due to toxic culture and a narcissistic boss. The good news was I had an emergency fund and a better financial plan to give me an escape plan without the stress. Our debt has been reduced, and my finances have been simplified by reading many books and podcasts related to FIRE (including Rebel Finance School). It has opened my eyes to a whole new macroeconomic environment, and I yearn for more knowledge. Plus, I am more confident in making our retirement decisions and don't need a financial planner.
The first lockdown was my big motivator. Having been self-employed for years, it was scary to have no income and still have debts to pay. I made a plan to pay off consumer debt. We sold a rental property and started investing in shares after being introduced to Sharesies by our daughter. I have become obsessed with reading up about personal finance, and since discovering your website and podcast have been a big fan. Thank you for your wonderful commonsense advice!
I think one of the easiest wins was changing jobs and getting an $8,000 pay increase. In terms of savings, it was breaking up goals into X amount per week, trying to start saving for them as far out as possible. It was how we had a wedding while not going into debt.
I read the back catalogue of Mr Money Mustache and the whole JL Collins Stock Series before finding you, Ruth! I was inspired to start cycling to work and have dipped my toes into investing. Currently learning PocketSmith, and WE SOLD OUR UTE!! I feel a long way from FIRE (financial independence retire early), but this opportunity for reflection shows me our achievements.
I would like to write that since reading Ruth's blogs and listening to the podcasts, I have joined PocketSmith, which has been such a wonderful experience. I hadn't ever thought of using such a tool; it keeps me honest. I like to see week by week how I am doing, where I have gone over or under and the option to see my overall wealth. I have also joined Sharesies, which I wouldn't have done without this input from The Happy Saver, and I contribute every fortnightly pay. I am so so thankful and grateful to you both, and even though I started later in life, as Ruth says, it is never too late to start. Thank you, Ruth, and keep up the amazing work and mahi for us all. You are impacting so many in a positive way 😊
Educating myself on finance (better late than never, starting at age 32) and paying myself first for the last four years has meant losing overtime at my workplace is nothing to lose sleep over. Years ago, this would have stressed me out, but now I can enjoy an extra day off a week and spend that time doing things that make me happy with people that make me happy. I’m still striving towards my financial goals and will aim to bring in some more income after winter, but for now, I’ll enjoy an extra sleep-in on these chilly Central Otago mornings.
I love your podcast series and have devoured every episode. You have definitely helped keep me and my family on track with our money journey. My husband is about to start a new career which will have him earning less money but bring more work-life balance. I know from my years of budgeting and tracking our spending that our sinking funds are healthy, and we can handle the reduction in cash flow from him. Also, I am cranking up my business and doing a small amount of paid work again now that our youngest child can be in kindy for longer hours. So, my sporadic income will be able to pay down the mortgage faster and begin our more serious share investments.
I would love to win a book (always on the hunt for new financial reads). I am originally from Alexandra, and when we are frequently back visiting family, I check out the Dump Shop hoping for a financial book score - it’s a shame it's not going to be around much longer! My Auntie gave me The Richest Man in Babylon when I was 19, and I used those ideas to help get a 20% deposit for our home that we purchased when we were 24. I have read The Barefoot Investor for adults and the children's version (in fact, we are about to start a new pocket money system with our three kids in the hope of teaching them to spend, save and invest their money). Thank you for all your work; it always makes me excited to see a new podcast or blog post drop in my inbox.
We built storage sheds on our property to rent out. They are very popular.
In 2014, I left my job to be a stay-at-home mom, a decision that turned out to be the best one I made. However, it significantly depleted our savings and left me with a very low KiwiSaver balance. This year, I returned to full-time work and took several steps to improve my financial situation. I contribute 10% to KiwiSaver, have saved $10,000 for emergencies, and make extra mortgage payments to compensate for years of minimum repayments. I'm grateful to The Happy Saver for sharing inspiring stories of Kiwis achieving financial freedom. They keep me motivated, knowing that one day my family will reach that goal, too 😊
Like you, education has been key to improving my financial situation. In the last year or so, I’ve finally realised that there is a huge treasure trove of information out there to build my knowledge and improve my situation. At nearly 40, I feel I’m rather late to the party, but I’m making up for it now by taking in as much as I can. All this high-quality content from people like you, Mary Holm, MoneyHub and others makes me feel really positive about my family’s present and future and inspires me to keep it up!
To improve our financial situation, we have our emergency fund, KiwiSaver, and some money invested. I try to get my hands on all things financial to read (via the library) and, of course, love listening to The Happy Saver podcast. I am still totally confused about the best course of action... we are saving as much as we can every week for our retirement. My husband is due to retire at the end of 2023, while I'll keep working for another eight years or so.
I have only just started listening to your podcast this year, Ruth, after my work colleague suggested it and told me about the concept of FIRE (financial independence retire early). I have just turned 50 this year, and I reckon it is never too early to learn this stuff. I now religiously listen to your podcast and send links to particular episodes to my 18-year-old and 19-year-old sons. So what have I done since I started listening: I got a job as a census collector (my side hustle), which I did every weekend on top of my full-time job so that I could kickstart setting up my emergency fund. I have $3,500 in that account, and although I’m not doing the census work any more, I have cancelled my cleaner and am putting $100 a week into that account. Thanks, Ruth, for the motivation!
I’ve started investing only a small amount. I’ve also got a high-interest saving account that has a 90-day policy, so I don’t just dip into it. I have also invested money into a KiwiSaver for my 3-year-old.
I simply have started being interested in finances! I had zero interest in money a year ago, and although I am only just beginning to understand, I'm hoping that I can pass on any knowledge that I gain to my two daughters. My hope is that they don't waste years of earning as I did and also enjoy their money along the way (as I've just read Die with Zero!). You have been a huge factor in this, Ruth, so thank you!
You were pretty much the first finance knowledge blog I came across, and have completely changed my attitude toward personal finance - thanks for everything!
Since stumbling upon The Happy Saver, my financial fire has ignited! It’s been 18 months now of books by my bedside, podcast immersion, and I’ve signed up for PocketSmith (which I am loving). All of these actions have led to my biggest learning and understanding, and that is; that my husband and I are in a position now where we could retire early should we choose to. My other fantastic financial improvement is not so much for me but for my kids! They have begun listening to your blog and, based on my sharing our financial position and goals and overall net worth, signed up to PocketSmith, too…..and they are hooked on both! Thank you, Ruth and Jonny, from me and my kids.
I have simplified my management of money in terms of my accounts. I am looking at houses within my budget of what I can afford and the time frame I want to pay it back in (7-15 years) rather than what the banks tell me I can afford. After separating from my ex-husband last year, my net worth halved, but my financial situation improved because he was a horrendous spender.
Applied and got accepted for a role that paid 20% more than my previous role!
The three big takeaways for me are 1. Compounding interest in my KiwiSaver, so paying my fortnightly contributions instead of a last-minute lumpsum in June. 2. Setting up an Emergency Fund, just $60 per week, into a serious saver account that’s now earning 5% interest. Now that it’s at $6,000, I can move half over to an even longer-term with higher interest. 3. Weekly meal planning, I started a budget after I realised how much I was spending on takeaways, lunch, coffee, dinner etc. The savings have been huge!!!!!
This year, I changed jobs from a very stressful job working 22 hours a week to a less stressful job working 37.5 hours a week. I have doubled my mortgage payments and therefore am now able to pay off my mortgage by the end of the year (was due to be paid off in May 2025). I am so excited about the new financial freedom this will offer myself and my family.
We are a family of four (two adults and two kids, aged 14 and 10). We have set up an 'envelope' system to help us manage our finances better. Yesterday I brought a gift for a friend, so I transferred money from the "birthdays" account into our “cash” account to pay for it. I have also joined up for a CAP course and finally have the TSB banking app on my phone so that I can be part of the finances instead of leaving it to my husband, who pretty much handles all the finances. At 50 years old, and when he was away for three weeks, this was very empowering. No more anxiety at the till or pump, wondering if there's money to pay for it! We are currently redoing our budget and would love more tools in the kete!
The biggest thing for us is probably just taking action. Educating ourselves on investing and property investment. We have taken calculated risks, and not all paid off, but lessons learnt! Lived fairly frugally compared with many of our friends and reduced mortgages with any spare cash or bonus. Lots of home and property investment DIY where we can in order to save on tradies, e.g. painting. More recently (last 18 months), we have started investing each month, and I have become addicted to personal finance content and hearing people's stories which are helping us with formulating our next steps and future financial plan.
Was a teacher in New Zealand and decided to move to Australia. I plan to be here for up to three years. In Australia, I can earn more money and have fewer expenses. My goal is to save and come back to New Zealand and buy a house. I have started off being a reliever and getting used to the Australian curriculum, and I get some freedom. I'm looking into full-time work where I can also get free accommodation which is looking like somewhere in Northern Territory. I've got $15,000 left of student debt which is my priority to pay off at the moment due to incurring interest and fees. Loving your podcast and hearing all the stories. I usually listen to them during exercise; they are very inspiring! Thanks again for providing financial advice to us, Kiwis!
Not as good as I'd like to be, but regularly invest small amounts, have joined KiwiSaver, so am now getting employer and government contributions. Making sure my kids are better informed than I was most of my life.
Because of your podcast and The Barefoot Investor, my husband and I have been able to get on the same page in regard to finances. We are working together towards our future instead of floundering around alongside each other, hoping for the best. This has been the biggest improvement for us as now there are no arguments about money. We are clear in our goals and know exactly how we are going to achieve them. We have mojo and sinking funds, as per The Barefoot Investor. We are paying extra on our mortgage. We are using Sharesies to invest, and we have healthy KiwiSavers.
Repairing and using what we have, rather than assuming we need to buy something.
Signing up with YNAB was a real game-changer for us. It shone a spotlight on the reality of our finances. We have gone from living on two overdrafts with a credit card racked to the hilt and a personal loan to having only our mortgage debt. We also have an Emergency Fund and Sinking Fund money and don't run out of money before payday any more. A huge turnaround in less than three years. I love your podcast, as it reminds me we are on the right track, and I look forward to getting to a point we can start investing in something other than our superannuation. Thanks, Ruth.
I have started using PocketSmith to track my income and spending, and having categories is very great and seeing where I could be tightening things up! Also, reading your blog and other NZ money podcasts keep me informed and curious!
By spending time learning about investing, I have been able to do more with my money, helping me ride the wave of inflation rather than draining my funds. I'm trying to invest as much as I can in stocks and shares (ISA here in the UK) and seeing how close I can get to the yearly max each year. I'm hoping to also look at improving my pension and getting more knowledgeable in that area of things too.
I separated in 2016 and came back to New Zealand with five children and 23 boxes. I went on the benefit for a month before starting to study. After three years, I started working different jobs till I got my current job. I’m not debt free yet, but I’ve learnt so much from your website that I aim to be. I’ve started an Emergency Fund and Sinking Funds. It’s been an emotionally and physically difficult journey, but having a goal helps.
We’re due to have our first baby in December, and the pressure sure is on to stack up some funds! We’re finding it hard with the price of living costs. We’re now being choosy with what we buy at the supermarkets, often just buying what we need and trying to find cheaper alternatives. I work from home (my partner commutes), so I’ve got strict about only heating the room I’m in over the winter and turning off lights and heaters when needed.
Having a financial plan that I am in control of has removed any anxiety and worry around money and given me choices. Two big achievements - buying my home with over 20% deposit and knowing that I can afford the soon-to-be increased mortgage payments without changing my lifestyle.
I came across your site nearly a month ago as a 56-year-old looking at ways to increase my savings for retirement. I subscribed to your newsletter and just this weekend decided to open a Sharesies account (being totally clueless previously on investing in shares). I love how you explain everything so easily that even someone like me thought, "Yes, I can do this too!" Looking forward to reading many more of your blogs.
I’ve always been a saver and always will be. But the one thing I’ve done to really change my financial situation is getting ahead in my younger years so I can afford to enjoy my money a bit more now. I was bordering on not spending enough money to enjoy myself, maybe even being cheap. I’m 37 years old, paid our mortgage off last year and have over $170,000 invested. I have recently put my family first by quitting my job, helping my husband build our business, and having more time with my kids (aged three and five), and I now have the mindset that money shouldn’t be wasted on things we don’t value, but should definitely be spent to bring happiness and buy us time. This new outlook on enjoying our money has been a game-changer for me.
Started a little side hustle doing what I love - growing plants. The kids are old enough to help out, and we use any money made to fund family holidays.
I have read a few books and read your blog. I have changed my KiwiSaver provider (after shopping around and doing my research, of course) and am convincing my partner to do the same. We have regular savings and have invested in shares but need to regularly put the savings into shares. I need to get my partner to read some of these books so we can talk more on the same page about planning (and actioning) an early-ish retirement. I feel somewhat in control, and I like that we are in an ok financial position to ride the current New Zealand circumstances (high-interest rates etc.) without having to worry.
This is the first year I have had an Emergency Fund. It's only small at the moment, but just knowing I'm steadily contributing to it, and one's actually there, is such a stress relief!
In May 2022, my husband purchased The Barefoot Investor and suggested I also read it. We had a huge Aha moment and quickly went about following his steps one by one. One year on, we have ditched all credit cards, stashed a $20,000 emergency fund, started investing $300 a fortnight, increased our mortgage payments and supported our kids to start investing as well. Feeling great, but always wanting to learn more!
I've tried to start using cash more, as this has helped me with impulsive buys. I also try to plan out my outings so I'm mindful of what I'm spending that week. I have also started shopping for my produce at the fleamarket to try to bring my costs down too. I have been on Sharesies for a bit also to try my hand at investing.
In 2019 I decided that if we kept doing the same thing, we'd always get the same outcome, i.e., no spare money. So now we regularly put money into Sharesies and Investnow, and we upped my Kiwisaver to 6%. Next, I'm thinking I might need to change my job to increase my earnings. I've just started following you, but really enjoy your thoughts 😊
Before kids, we saved the entirety of whoever was earning the bigger income. When we got our first house, we had three kids in one room and an exchange student in the other until we got on top of the mortgage. Then we spotted a much bigger house and asked the neighbours if we could buy it in a private sale. So went from a tiny three-bed to five and a fab section for chooks and vegetables. Still got the exchange students!
Our financial situation has improved because we have gotten in the habit of buying houses, moving out and buying somewhere else... but not selling. Lucky enough to have started doing this from a younger age (31, and are now early 50s). My wife and I now have three homes that we have lived in, and all are mortgage free. I'm now putting my vast majority of earnings into the share market, and the vast majority of this is in index funds. We plan to do a gap year in 2023 and camper van around the country. Our net wealth has come about mostly with reasonable living and frugality in combination.
After reading The Barefoot Investor, I paid off my credit card and car loan and am now working to pay off my mortgage by 50, which is five years away. I have emergency savings, long-term fun and whare bills savings accounts, so I don’t have to worry about high-interest debt. I work to save for all things I need to buy. I always budget for my weekly spending and am actively saving to be able to retire early.
We sold our lovely property that still had a mortgage on it and moved back to our home town closer to my niece and her family. We chose a much less desirable home, but it is in a great neighbourhood. We hope to do this home up over time. And our sale left us with a bit of money to do it up and some to save and be mortgage free. Just need to get my gardens growing our own food again.
We have gone from looking at 15 years till we paid off our mortgage to doing this in around seven ($20,000 to go). Not borrowing when everyone else was when interest rates were low, and no new cars, boats or renovations for us. We knew what was going to happen to the economy and are thankful we didn't try and keep up with The Jones.
Like you, I also love talking about and researching anything related to money. I love helping and sharing information with my family and friends. I knew I wanted to be ‘good with money’ from my mid-twenties, but it took me a little bit longer to understand what that looked like. I approached it like a project. 1. Establish and manage/review the budget to reduce unplanned expenditures. 2. Get rid of ‘bad’ debt. 3. Set up automatic saving and investing, including KiwiSaver. 4. Pay down mortgage(s). 5. Invest further for retirement. Last year I organised a meeting with a financial advisor to see how we were tracking, and turns out we are doing ok. So I realised we needed to have more fun, so I have eased up a bit and prioritised the things we love to do. I love your blog and podcast…thanks for all the money and education over the last seven years!
I started out reading The Barefoot Investor and organising my bank accounts to start off with. Although I resigned from a good stable-income job and felt like I had done the wrong thing, given I had three young children and was the main income earner, I decided to become self-employed to have more earning potential and also more time with my family. I have paid off my close to $100,000 student loan, and although I haven’t purchased our first home yet, I feel we’re getting there; I just need to tighten up our spending more and get more info about how the money can work for us not the other way around. I’ve started with Sharesies, but still a long way from understanding how this all works!
I've managed to save up an Emergency Fund of $15,000 and am about three years away from paying off my mortgage in full (aged 54 - got started in the journey a bit late!). The money sitting in my Emergency Fund is being used to offset a portion of my mortgage. I also now have about $5,000 invested through Sharesies and have been paying $20 a week into it for about the last four years.
Communication and learning are key, plus being open to trying new things. As a clueless couple with kids and plenty of inherited money baggage, having a chat with you, Ruth, was great to solidify our thinking. Next, we will prepare to sell our rental property (which we bought just because it’s what people do, not from any desire to be landlords). Working on the next goal of saving and taking the family to Europe next year.
I read The Barefoot Investor and loved the idea of the buckets, but they didn't work for us, so we changed banks to BNZ with their awesome app and now have nearly 20 accounts for all of the things. Much more manageable, and I can add photos to each account to personalise them. Love it! Also paying off extra on our mortgage.
Saving up a specific fund in advance so I could take maternity leave this year for our first baby. Prior to going on leave, actively reviewing and negotiating all our ongoing expenses for more competitive deals - power, internet, insurance etc.
We have had good times and bad, but we remain positive. I have been bankrupt due to living above my means and lost everything. Long story short, we purchased our first home five years ago, now live within our means and have no debt. I wouldn’t have been able to learn this if I didn’t struggle! I was married for 20-something years, and money was a struggle. My mum got sick with cancer, I left my full-time job and then went through a nasty divorce, hence, bankruptcy. Seven long years to learn from my mistakes and ensure I didn’t ever hit rock bottom again. Budget advisors are the best resource available for free. To this day, I will still see my budget advisor when I earn more or need to look at restructuring my mortgage and refinancing. Tracking where my money is being spent. I’m wanting to start using PocketSmith and enjoy reading your blogs. It puts my finances in perspective. To this day, I have still got into financial trouble, and we have a default on our credit rating that has made the last 3-4 years very hard when wanting to go to a mainstream bank; we are still with a second-tier lender. Sorry, we have been through it all, and it’s hard to put everything in order haha, but staying positive is key! There is so much information out there, and I am always looking at ways to make sure once we can refinance with a bank, we can develop ways for us to have what we need when we retire.
I found out that I could increase payments on a fixed-term mortgage account up to $1,000 per month without incurring any extra fees. The new set amount must stay the same until the end of the term. If you break up your mortgage into several fixed accounts and one or two floating, you can get the benefits of both.
Out of debt, constantly learning and improving my financial knowledge and situation. It just feels soooo good!
Started saving goals in preparation for the expected second baby's arrival, and we are now better budgeting for expenses.
Setting up multiple bank accounts and portioning money at payday.
Self-education through podcasts, blogs like yours and Aussie Firebug, Mr Money Moustache, JL Collins etc. From $1,279,000 debt (with a $1,635,000 net worth) in 2017 to $0 debt (with a $1,680,869 net worth) in 2023! Consisting of $858,000 (house), $675,000 superannuation (in ETFs and LICs), $116,000 (ETF and LIC), plus cash. Divorced with four investment properties, purchased a fifth that has turned into our home after selling one investment property. During COVID, sold the remaining three investment properties. It's a constant journey to be better. Now saving to pay cash for a car.
I’ve been lucky enough to have parents that put me in good stead money-wise. My wife and I are $22,750 from being mortgage free, and I believe books like The Barefoot Investor, The Psychology of Money and blogs like yours have kept me so motivated to keep it simple, pay off debt, then build up a good portfolio of shares without taking on debt and leveraging up to the eyeballs. Thanks for keeping it real!
We had cash offsetting our mortgage interest. We thought not paying interest and just the principal was good enough - why would we want to pay more than we have to?! Especially when we had all this cash for "emergencies". Then we realised we'd rather be paying NO mortgage at all, so bit the bullet and paid everything off and started saving for an Emergency Fund from scratch. Two months on, we have saved about $6,000k to add to our Emergency Fund and have no debt! Bit of a flat moment when we made our last payment. But feels amazing to be debt free.
For me, it has been understanding more about ETFs. We own investment properties; however, when the time is right, we will sell down and convert the capital to passive investments. Thank you for your podcasts - I get excited each time a new one is released.
By increasing my income, I improved my skills and sought better pay. For many years I didn’t want to change jobs because I feared the unknown. I worried I would get a bad boss or work culture. When I finally took the step, I did experience a bad culture but moved on quickly. Now, I am paid almost double my first job and have a great working environment. With this change, I have finally been able to own a home.
I have finally drawn up a budget to live by. The shock of seeing where money was basically wasted!! Also, setting up an Emergency Fund of $1,000 has been our start to a serious, purposeful journey to being financially stable. We are now working on the debt snowball for the last few debts we have. I love receiving your emails; it has been sooo insightful, relatable and motivating. Thank you!
I always kept an eye on money, but far too casually. Now I track all expenses, set a realistic budget, check in once during the month to see how we're tracking and sit down with my partner for a monthly wrap-up. With kids, our costs are sky-high, but I feel better knowing exactly where we are at.
I invest 30% of my gross income in index funds, and we make sure to pay the maximum extra payments on our mortgage.
It's a tough time at the moment for money, but I really believe that simple habits make a big difference.
My husband and I use multiple online accounts for known expenses, which we pay into weekly so that we can keep on top of things. These include rates, dog fund, birthdays, Christmas, dentist, and children's clothes. It takes the pressure off as we are both working part-time as we raise our two young children 😊
I am a single mum and still early days of my financial journey. But at 54, you are never too old to learn. Right? Now I calculate my net worth monthly. Tick! Switched to Simplicity KiwiSaver from Fisher Funds with much lower fees. Tick! I closed ASB managed funds and stopped life insurance as too expensive, and I don't need it anymore. Instead, I invest that money in FNZ and USF Smartshares index funds. My second month doing this. Tick! I've increased the income I invest from each pay by about 10% to 28%. Your blog helps me so much as it inspires and motivates me.
I've opened a Sharesies account and have committed to adding to it every month. I've also talked to my son (age 11) about Sharesies, and we opened an account for him too. It must have been good timing because his account is growing quickly, which is encouraging him to save/invest more - yay!
Built my emergency fund and continued to build it! This has helped me be confident in whatever I’m doing with money.
Hit an all-time low financially through Covid - and realised how financially illiterate we were. Just pissing our money away without even realising. Made it our mission to better ourselves and our family situation through daily habits of reading (hadn’t read since high school and now have a goal to read one book a month), listening to podcasts, and talking with others. Financially speaking, we are now finally debt-free, propelling forward and HUNGRY for more learning.
Mine is every fortnight when I get my NZ superannuation, I have all bills written down. Send some off for power and rates. I’m also trying to get rid of the credit card because I find it too easy to buy treats. Yes, life is for living, but not if it is going on a credit card. Have to keep saying it's not “your money” you are spending.
When I returned to New Zealand jobless and pregnant after a two-year-long motorcycle trip through North and South America, I was a little scared of what our financial future might hold. Six years and three kids later, we’re approaching owing less than $100,000 on our mortgage with six figures in investments/stash.
The first thing I did was cut up my credit card! Even though I was earning a minimal wage, I slowly whittled away at my $5,000 debt until, two years later, it was gone. I had been in debt for three years. This change of priority came from reading The Barefoot Investor.
I have a l-o-n-g way to go to be financially successful and not much time left to do it in. However, all is not lost, as I have discovered, thanks to you, Ruth - Sinking Funds. It started with getting a car. I had a lovely one - old but reliable - that I was saving to get the timing belt replaced on when I was rear-ended coming home from work one night. My car was a write-off 🙁, but with a decent insurance payout and the money I'd saved for its maintenance, I stepped into another fabulous car. This next car came with all receipts for work done, and from that point, I was able to calculate approximately how much it was going to cost me per year to run, including insurance etc. I divided this amount by 52 as I'm paid weekly, and, hey presto, my first sinking fund came into existence. My work is on a casual basis. I work 8-hour days at minimum wage, but we can get stood down at any point, and that makes life difficult with budgeting. I have just started back after a 10 wk stand-down period in which I was able to pick up a few small jobs, but my Sinking Funds enabled me to survive without dipping into savings and only 'borrowing' $26 from my Emergency Fund. I now need the courage to throw some money into short time investments.
Since July 2022, I moved my retirement fund from AMP to Simplicity KiwiSaver, opened a high-interest savings account and saved our three months' combined salaries ($42,000) as an Emergency Fund and $15,000 to pay for our overseas trip. I also got my seven-year-old son to start investing in Sharesies (on top of his existing splurge, save, and give buckets).
We downsized our house, size and quality, which downsized all our monthly bills and cleared our mortgage, meaning we feel happy when interest rates go up. Bliss!
We’ve sold our house, which was causing way too much stress with an over-the-top mortgage, and gone renting. Made our first proper budget in five years. And started proper savings accounts to grow the capital we pulled from the sale for the purchase of our next house.
By working out my actual spending over a year. Getting a job that pays a bit more and then being able to reduce my hours. Living within my means and being grateful for what I have. Gives me freedom and security. Thank you, too, Ruth, for being you 😊
Regular contributions to Sharesies. Although it is not a lot, I try and contribute at least $5 each week to a World Fund ETF. It amazes me how so little can build up!
Created a $1,000 Emergency Fund, but aiming to increase it. Have a budget, although always tweaking. No frittering. I enter a lot of competitions and win quite a few things, which I either use (I just won a double pass to a cabaret event) or give as a birthday gift, so it saves me money. I gave my sister a De Longhi espresso machine that I won for her birthday. I'm signed up for Prime Research. I walk to work when I can to save petrol. I have a Bartercard through work, which gives me a 50% discount - handy for eating out or buying a $50 voucher for $25 for a birthday gift. Recently signed up to First Table - 50% off meals. I won a review of the week and got a $50 account credit. Eating more vegetarian meals and cooking enough dinner for two nights. Have just changed to pay insurance premiums annually instead of monthly as you pay more monthly.
Cancelled subscriptions to Netflix and magazines; I never watched or read! Made a list of spending for three months, then cut out wasted items. I budget for everything and save for things that I want and need! Donate unwanted stuff to charity! Works for me, and feel in control now as have savings and Sinking Funds!! Thank you 🙏
We now have no debt. We also got rid of our credit cards and are saving for a house one day. We save hard but live life as well, spending on things that are important to us. Being debt free is such a weight off our shoulders.
We have slowly improved our financial situation. First came the budget and getting debt free. Second, we have built an Emergency Fund several times (we actually used it for emergencies). Now we are saving and investing for mid and long-term goals.
We now have no debt!!! Woo hoo! Best of all, I have changed my mindset on buying rubbish and get excited about investing instead. Recently we were fortunate enough to go on a trip to the USA, and because I was determined not to waste money overspending on unnecessary shopping, we even managed to return home with money left over, which was a first for us, I can tell you!! I love listening to your podcasts Ruth and find them very motivating.
A busy job, two young kids, and not knowing our true financial position made us feel stressed and exhausted. After resigning and putting family first, it unlocked our ability to focus more on our financial position. Enter The Happy Saver into our lives, and we realised it does not need to be complicated. This led to The Barefoot Investor, and now we have a financial date every month, feeling great about not only understanding our finances but loving life.
Hey Ruth! After having time paying interest only and then lowering our payments to a minimum by extending our mortgage term during Covid, we are now back to paying more than pre-Covid (by choice)!
When we were in our forties, my husband and I read a book about property investment (which recommended negative gearing) and decided this was our way to financial freedom so we set about buying one house every year, renovated them in our spare time to a standard we would be happy to live in and rented them while endeavouring to be good landlords. We never searched for houses; they just seemed to find us, and we have been lucky to have great long-term tenants. We have now retired early and are able to live off our superannuation while planning to sell down properties to pay off our lending. I know you are not in favour of property, but it worked for us probably because we could stomach being landlords. Now we need to figure out how to invest the freed-up money we will be using to fund our retirement.
By tracking what everything costs over a year and breaking it down into a weekly number. By being conscious about where money is leaking out. By investing in different areas (and by investing, I mean it’s less than $1,000 after three years). By spreading the word with my girlfriends. And by reviewing the spending spreadsheet often because I’m always finding something that needs adjusting or improving!
I met a lovely man who earned $65,000 a year and managed to save $500,000 through sheer frugality. I married him!! Add in my $200,000 in savings, and we bought our first home with cash. (Now I just have to persuade him to spend a little!)
In the past, I have tried budgets but never stuck to them. Since listening to your podcast, I have committed to a weekly budget, just a plain handwritten one in a notebook, but whatever works, right?! From this budget, I have managed to track and trim expenses and build Sinking Funds, meaning that things like maintenance for the car don't come as a 'shock' like they once did. Since beginning our budget, we have managed to make fortnightly extra payments towards our mortgage, spurring us to prioritise becoming debt free!
Student loan paid off. Three months' expenses in the bank. Putting lots extra on the mortgage and into shares each fortnight.
With determination and strategic planning, I transformed my financial landscape. By creating a realistic budget, tracking expenses meticulously, and reducing unnecessary spending, I gained control over my money. Automating savings became my secret weapon, ensuring a consistent flow into my emergency fund and investments. I educated myself on personal finance, devouring books and seeking advice from experts. Taking risks, I ventured into side hustles, amplifying my income. Most importantly, I cultivated a mindset of delayed gratification and long-term thinking. Today, I enjoy a healthier financial picture, and my actionable takeaway is to prioritise financial education. Arm yourself with the knowledge to make informed decisions and secure a brighter financial future.
I have paid off two of my smaller home loans within a year. I have paid off one of them first and then rolled over the money into the next one until it was cleared too. I am now left with the big one, but with all the other combined money going towards each payment at the moment, it will be paid off much faster.
Much more disciplined when categorising wants and needs. After all, a lot of it is just stuff, so changing to a more simple life yet still being comfortable has made a lot of difference and really opened up my eyes… and I’m still learning and enjoying the journey.
I think the most important thing we did was just be conscious of our spending. Any purchases were made with intention and thought about. Even though I am in a high-paying job, we bought what we needed rather than the most expensive available. The extra cash was used to pay off debt and invest.
I have set up separate accounts to manage savings and expenses. Started an Emergency Fund. Applied for a scholarship to study financial services level 5 and got it!! So happy 😀 You have helped so much!
One of the main ways I have improved my financial situation is to track my spending. I have an Excel sheet set up where I record all of my spending. I have it broken down into monthly and yearly spending.
Just starting our journey to improve our finances, and we are making extra mortgage payments, meal planning, and only buying what's on special. Have started buying clothes at an op shop instead of new ones.
I managed to buy my first home with my partner (during a pandemic, no less!) and have been going hell for leather on paying it down! I'm super proud of the progress so far.
Moving to a small town helped me along with getting rid of the credit card and getting a better-paying job. The beginning of the pandemic gave me a bit of a fright and helped me to understand why my parents used to advise saving for the hard times in the good times. I am also grateful for all the accessible material out there, such as yours, that I can learn from. I am now in control and more at peace, and it’s a great feeling!
Paid off the last $2,000 of my credit card debt last month. The first time being credit card debt free in over a decade! It was 0% interest, so I'd only been making the minimum payments and was building up my savings instead. Recently realised I'm 35 and am beyond ready to stop the cycle of spending on and paying off credit cards. Decided I'm only using my debit card moving forward and have closed all of my credit cards, even when Q card tried to convince me to stay by offering to waive the next year's account fees for me!
By paying off a mortgage as fast as possible, throwing every spare dollar at it, and consequently paying the least amount of interest chargeable and decreasing the term.
We have paid off a small loan that we had on top of our mortgage, so we could save that money each fortnight instead. We have always paid more on our mortgage than we need to as we want to pay it off sooner. We are also saving as much as we can for our rainy day fund. We have no debt apart from our mortgage. We do have a credit card but don't use it very often and pay it off when required. It feels great having control over our finances.
I'm a work in progress (aren't we all!), but I'm trying to keep an eye on where my money is going in reality rather than hypothetical budgets. Actually, looking at the nuts-and-bolts figures was eye-opening.
I've improved my financial situation by getting a flatmate to help with expenses and actually starting a budget and revisiting it often. I think it was one of your podcast guests who received the advice of making sure you "know your numbers." This has stuck with me.
Hi Ruth and Jonny, probably the simplest answer to your question is: By making the best-educated decision, we could, at the time, then keep the education going. As knowledge accumulates, adjust plans accordingly.
In life, we never stop going through experiences. Hopefully, those experiences translate into learning. Identifying the learnings that matter the most to you makes life much easier. Otherwise, we tend to go over the proverbial mountain again and again… Accumulating learning can lead to wisdom. Financial wisdom hopefully helps reduce the gradient of the mountain(s) we are experiencing in the other areas of our life. Thanks for sharing your learning 🙏
Listened to every personal finance podcast I could find then: Stopped going into overdraft, paid off my credit card and chopped it up, paid off my Q Card, and restructured my mortgage to pay it off in 12 years instead of 20, saved an Emergency Fund, paid off my student loan… Still listening to every podcast I can find.
I have set up accounts, started investing outside of KiwiSaver and cut down excess spending, mostly buying second-hand for things we need/want. Your emails popping in my inbox keep reminding me to check in on my finances and keep optimising. Thanks!
I have achieved something huge! I’ve finally got my laid-back ‘we can afford it’ husband on board with saving an Emergency Fund and having Sinking Funds. It’s a small step, but we have been borrowers (for renovations, rental house, holidays using visa etc.), so this is big. We are not going for FIRE and 🧡 our jobs, but we’re really starting to see progress on savings, mortgage, and for me, investments. So happy 😊
Saving a portion of your pay each fortnight. Preferably at least 10-15%. This diligence and consistency add up over time and give you financial peace of mind.
By reading books and blogs and listening to podcasts, including your own, which has been a great help to me over the years. I've still got a long way to go, but they've highlighted the importance of having an Emergency Fund, being aware of your spending, and investing, amongst a million other things.
I am not 100% sure I have totally improved our financial situation, as there is so much to learn and improve on, but I feel I am keeping our family afloat in these difficult times and am managing to buy shares each week, albeit only a small amount. I contribute to KiwiSaver for the four of us, and even when there is spare cash, add extra to our fund. Increase our payments each week to the mortgage, and we are coping with a jump from 2.69% to 6.65% in interest. I just want to learn more so that instead of grinding away, we can earn or create a wee bit more to do fun things with our two boys.
My wife and I are in our 40s and about to spend 12 weeks in Thailand, both taking unpaid leave. Rewind 7 years, and we were separated due to my wife having a gambling addiction that had taken its toll on our family for nearly a decade. It's been a hard road for both of us, but we avoided divorce, moved from Auckland to buy a home in Christchurch, have paid back all debt except the mortgage, and saved for this trip of a lifetime. So our story has a happy ending, and I credit the personal finance community for getting us here and being the light on my way through a very dark tunnel.
We are at the very beginning of our ‘improving’ phase, and with an Auckland size mortgage, it seems the journey will take some time! BUT finding this podcast has given me hope that we can do it! With the addition of teaching some better skills to our four teenagers. Thank you for normalising the money conversation 😊
Saving an emergency fund so when unexpected bigger costs come up, e.g. car repairs, a broken washing machine etc, I don’t have to worry about borrowing money and going into debt. Peace of mind as well.
Each month I do a forecast and look at the last nine months' account averages. I have managed to find out when prices have increased and change my spending habits. Each month I am able to see how my bank balance can increase and overall wealth increase. While small gains are overall, the bigger picture is stability.
Hi Ruth, I have been receiving your emails and enjoy your podcasts. You put me on to The Donegans, and I find them enlightening and entertaining. I have invested in Vanguard Funds and have purchased glasses from Clearly through your recommendation. I went through a financial setback (bad business investment and divorce) a few years ago, but since stumbling on you, somehow are managing to turn my life around. I now run an Airbnb room in a separate part of my house, which is located approximately five minutes from Christchurch airport and has been lucrative. I am now building a minor dwelling as an Airbnb. This is my retirement plan. I invest in Juno KiwiSaver as well and work full-time from home for an insurance company. Thanks for all you do.
Kia ora. It's the 'you only know what you know' situation for me. I am 53, have raised a beautiful whānau and work hard. I have followed budgets and tried to keep debt low, but have realised my internal me-talk keeps telling me I am bad with money, which makes me scared to make changes. I made my 2023 goal to improve my financial situation by growing my financial know-how, and you are helping - thank you so much. I am on track to clearing credit card debt for good (just $1,400 to go) and building up some savings. Next stop....financial independence through 'understanding' what I am doing with my money and sharing that with my whānau xx.
The biggest thing we did to improve our finances was articulate our biggest goals with money. Our biggest goals aren’t “have a million bucks”. They’re things like “wake up each morning and be free to determine what we do with our day”. It reminds me that money is a tool, not the goal.
I would love to know how to make money work to make my retirement life comfortable and happier.
Hi Ruth. I’m a single mother who has recently split from a financially abusive relationship, and I was feeling financially out of control. I was having a conversation with a good friend who mention your blogs. I listened to one, and you mentioned The Barefoot Investor. I read the book and, as a result, have changed to a no-fee bank, sorted out my insurances, cleared and cut up my visa card, set up automatic payments, so I’m saving $600 a fortnight, and in addition, changed my KiwiSaver provider. I am now starting to have some financial control in my life, and the future is looking brighter.
Getting rid of all debt, mortgage included, and committing to not do that again (which we find quite hard!). Learning what an investment really is (and isn't...)
I've learned that being a good saver doesn't get you far enough. Putting money to work, investing, and taking the lead with family finances has been a game changer!
When making the decision to leave my husband with three young children, I felt panicked about my financial situation. I'm no slouch, but as my (ex) husband worked in finance, it made sense for him to take care of things financially. I'd lost touch over the years and worried about how I'd make ends meet. A friend introduced me to The Barefoot Investor, and I've never looked back. Cleared all debts except my mortgage and have Sinking Funds. I lost my job three months ago but am managing to keep afloat as I have an Emergency Fund. I have faith that things will work out and pat myself on my back daily for being able to cope in a crisis.
The best thing I did was get out of debt and cut up my credit card. Having a new mindset to buy what I need, not want and not always buy new or designer labels.
The most important thing for me has been a change in mindset! I grew up in a poor family and was never pushed to believe that I could achieve great things. Meeting my (now) husband in my early 20s helped open my eyes to what was possible, and then I went on an amazing personal finance journey and spent many years educating myself. Now I'm in my mid-30s and have a net worth of over $1,000,000, and so much hope for the future. I have three young children and feel so proud of the opportunities I am able to give them to grow and thrive (whilst acknowledging the luck and privilege I have). Thank you, Ruth, for this amazing platform you've created.
Budget, budget, budget. Paying myself first into Sinking Funds helps me stay disciplined. Slow and steady is the way.
It's been great to have someone to read that gives New Zealand-based tips! I found your blog as I entered my twenties and was just beginning my financial journey, and over the past few years, it has been especially helpful reading your blog. In particular, your translation of advice from overseas to NZ-based are some of my favourites to read.
Recently came into a bit of money. Used $40,000 to immediately break and pay off one of our mortgages. The break fee was $10 and saved $125 in interest payment. The rest of the money I have put into a savings account to earn interest, then when the main mortgage comes up for renewal, the thought is we will put $40,000 on that. Then keep a sum of money in savings for a bit, as in this economy, it's nice to have a bit of money in the bank. I hope that makes sense. Love reading your posts, by the way. Have a great day!
I have improved my financial situation in a lot of small ways. My kids do the money jar principle from The Barefoot Investor for Families, this has helped me and them learn how to better manage their own money. I set up an Emergency Fund and have nearly $2,000 in there. I have separate accounts (e.g. car expenses, doctors and dental, children’s clothes, house, church, Xmas, and Afterpay/layby) that I allocate money to each week, and this has been my best financial hack of the year. There is money always readily available when I need it for certain things, and I don’t have to take money out of savings or other accounts. We grew up poor, and so I have had a very poverty mindset most of my life. Last year I went on a journey and have been slowly breaking out of that mindset. I discovered your podcast when I searched “NZ financial podcasts”, and that’s where I also discovered The Barefoot Investor books. Thank you for all that you do to share knowledge!
The biggest improvement in my financial situation came from an understanding of the difference between saving and investing. For most of my life, I thought investing was bank interest and term deposits. I thought the share market was pure gambling (in part due to bad single-share investing experiences). It wasn't until I joined KiwiSaver that I learned of managed funds, index funds, etc. I wish I'd known more about investing earlier in life, but glad I know what I do now so I can pass the knowledge to future generations.
I am 60, and I lost my son (aged 29) in a traumatic burns accident five years ago. I haven’t been able to work until now, and I am currently job searching. My partner of 10 years is a 73-year-old semi-retired accountant. We have just bought a 1960s brick home, renovating as money, time, and energy allow. I do a lot of the practical work; painting, gardening etc. I have KiwiSaver, which I continue to put in $25 weekly and a Serious Saver account, I put in $25 weekly also. These two things have helped me retain a sense of contribution towards our household while I was unable to work due to grief and lifelong clinical depression (which I have learned to manage well). At 60, I now look forward to working part-time again as I miss the engagement, although it has not been easy to be a successful applicant at this age even though I have a plethora of qualifications, attributes and skills. I was not taught about money growing up, and one of my goals now in these challenging times is to educate myself on financial matters. Your podcasts are a very helpful part of this. Thank you, and congratulations on your seven years - a very auspicious number, I might add 😊
I'm extremely new to trying to improve my financial situation, and someone on Facebook recommended your podcast. I binged the first season on a road trip to Hamilton and back, and I'm looking forward to putting some of the ideas into practice and learning more and more so I can reach the financial freedom that your guests speak about.
I have adopted The Barefoot Investor model, and I love how in control of my money I now feel. It really does work, and I get a kick out of seeing my savings grow.
Tracking my finances felt like the scariest thing I ever did, but it has made such a difference. I can see the positive results of all the little steps I’ve taken to get out of debt and build wealth for my future. I can also see where I can make more tweaks. This is just the start. Whenever I read something or listen to a podcast, I can make adjustments. I build my confidence in myself and feel positive about my future.
I have improved our financial situation by being totally honest with my husband and 100% transparent with anything money-related. As a result, we have been on the same page for 15 of our 35 years together. There is no longer any stress when talking about our daily finances as we communicate openly about money, our bills and our investments. Our biggest financial challenge remains our differences around risk – he’s a risk taker, and I’m risk averse. How do we work through this? By communicating.
I am a fritter-spender, and my husband is an impulse spender. He is still disinterested in planning for our future, at 64 years old to my 56 years. However, since July 2021, we have been debt-free (thanks to the Auckland housing market). We now live in the South Island, have an Emergency Fund, KiwiSaver, share portfolio, and a new (almost finished) house. My financial literacy journey didn't start until March 2022 as I slowly made changes and faced up to my wasteful money habits. I guess I am an example of how even someone with poor money habits can get ahead.
Started a budget and spent less than we earned. Concentrated on paying off consumer debt first, then mortgage debt. Created a small Emergency Fund, then started investing once we could see the light at the end of the tunnel. KiwiSaver was started once we had no debt whatsoever. The old mortgage payments are now our retirement investment money. Every week we save and invest is now, essentially, almost two weeks we don't have to work in the future.
I have improved my financial position by investing in Smartshares US 500 and Total World Funds. But… the biggest move I have made is opening Sharesies accounts for my boys, aged six and three. They get vouchers now for birthdays/Christmas instead of plastic!!!
I started investing at nearly 50 years old after taking encouragement from listening to all your podcasts on people's stories and a few others I follow. And I signed up for Scott Pape and JL Collins emails. Since then, I've had open conversations with my sons and my friends, especially one who was left with nothing after a marriage break-up. With what I've learned, I've helped her to get set up, too and hopefully start investing one day soon (she has KiwiSaver). I love checking my Simplicity account, especially when it's down, and I'm able to buy "on sale". If I'm lucky enough to win a book, I'll be passing it on to my friend. Thanks for all that you do. I hope you know what a massive impact it is having on people's lives.
I faced some ugly facts. Firstly I did a proper analysis of debt and began to pick them off one at a time. I cut up my credit cards five years ago and started to build an Emergency Fund so that I didn't have to rely on borrowing. I still have debt, but I am much more savvy about the impact of interest rates and the length of loans. I'm still not good at saving and would like to know more about investing!
I started investing in index funds for each of my boys on their first birthdays. It's been a comfort to see that money grow for them each month.
Getting rid of debt and staying debt free has made the most difference to our family.
I have reduced my debts to only a mortgage and reduced that significantly by selling an investment property. We now have money saved in the bank for retirement and save up for major purchases.
As a 60-year-old female and having followed you since 2020, I regularly share your advice and thoughts with family and friends. I began investing with Sharesies during Covid, and although I retired last year, I continue my regular monthly investment, albeit less than when I was working. I have learned and continue to learn so much about finances since following you, and I enjoy this process. I now follow several “financial” bloggers and receive good information from you all. It has helped me understand the importance of diversification and the need to continue with regular investing, with suggestions on where to invest. Many thanks, Ruth, for your inspo and help along the way.
I helped improve an elderly relative's situation. She had ~$40,000 debt, plus a reverse mortgage. We got her thinking in fortnightly terms, created a budget, cleared half the debt, sold some land she leased out, and cleared everything, including the mortgage. Two years on, she's less anxious, manages daily spending herself, and has savings. I still do budgeting for about six months out, but I no longer micro-manage. I'm sad I couldn't help sooner, but that's life.
By reading as much as I could EXCEPT for 'The Simple Path to Wealth'. I never managed to get my hands on it, so in the end, I trusted the many blogs I followed and finally invested in ETFs. However, I would like this book so I can read it in those moments when I still doubt myself when it comes to investing!
I had only been putting aside 3% for KiwiSaver, but after reading your blogs, I realised 3% wasn't enough but instead of increasing it into my KiwiSaver, I put aside 9% of my income (reduced slightly at the moment) into saving accounts and then yearly decide to put into my Kernel Index fund or pay down some of the mortgage. This year I decided to put more onto my mortgage as the rates on my fixed are about to double, but it won't impact us as the weekly amount now won't change much and may even be able to reduce the term.
I paid off my $85,000 student loan in TWO years (through working) and am now debt free!
As a first-time mum, dropping down to one income for 12 months and then returning to work part-time, I avoided looking at my finances for a while - it was way too scary! Taking the time to get familiar with where our money was going (and letting the shock subside of realising how little we had left over each month) made a huge difference. Instead of avoiding money stuff because of stress, I was now informed and motivated to improve our financial situation.
Recently I read your comments about ‘Sinking Funds’. I immediately set up some extra accounts for power, insurance and car maintenance. It is good to know that there are funds there, especially for the insurance and car bills. I often share the ideas I read or hear with my 16-year-old moko, hoping she will adopt some of the ideas. Thanks so much.
We have avoided consumer debt (thankfully) for the most part, but we do have a mortgage. We are a homeschooling family, so I haven't been available to earn much extra income, but now the children are a bit older, I've taken on some work that I can do from home, and I can put $1,000-$2,000 extra monthly towards the mortgage. I've also learned about Sinking Funds from your blog and discovered how awesome they are! So I'm saving towards known upcoming expenses rather than putting them on the credit card. We have two lots of orthodontic braces in our future, so I am saving towards those. It feels empowering not to need to go into further debt anymore! Somehow I never knew about this stuff! I'm turning 50 this week, and I think this has triggered some thoughts around how to enjoy our retirement years. Lots of self-education has been happening, and I'm so grateful I didn't wait until 60 to think about it all 😊
I've felt very inspired to pay off my student loan after hearing a few of your podcasts that directly addressed this. I made it my goal last June to completely pay it off. There was about $9,000 left on it, and six months later, on the 20th of December (the last payday of the year), I announced to my family that I had no more student loans. It was a great feeling. I have improved my financial situation by paying off debt, and instead, I'm putting that money towards my Emergency Fund, which is growing quickly. This makes me very proud and confident that I can achieve the goals that I set my mind to.
Built an Emergency Fund, created Sinking Funds, started investing ($50 a month), and just became aware of what I was spending. I've now dropped my full time earnings to spend more time with my son while he's young, and I feel financially able to make this decision (something I would have thought impossible).
I have improved my financial situation greatly by creating an Excel spreadsheet that I update every one to two weeks. It has categories and sub-categories like needs and wants, then fuel food or fast food.
We moved from the Netherlands about five years ago, where retirement funds are organised rather similarly, so we never really had to think about it. However, before we received our New Zealand residence visa last year, we obviously weren’t signed up for KiwiSaver and didn’t really save much. It wasn’t until I really started to look into KiwiSaver that I realised we actually have a 4-years gap built up in our retirement plan now. So ever since, we have signed up for a low-fee high growth KiwiSaver, built up an emergency account and started investing via Kernel.
I have recently paid off my student loan! I didn't think that this would feel like a monumental achievement, especially when it's so easy to be daunted by other looming financial goals like buying a house or building a big investment account, but it has had a bigger effect than I could have predicted. That extra money in my monthly payslip is essentially a 12% pay rise - Cant say those come around every day! I've divided the extra income into three different categories (some for finances, some for fun) and have been feeling so accomplished with how much faster I can achieve some of my goals now. So to those that still have a student loan over their head, stick in there! The light at the end of the tunnel is bright and beautiful!
Well, I feel like I have come a long way from when I first emailed you, and I have to say education and reading from books, blogs (like yours), podcasts etc, have helped me tremendously and help me stay on track. I have made great in-roads on the mortgage - my proudest achievement over the years, as I don't have to panic so much with the interest rates rising (and rising) in the current market. And, having an Emergency Fund and Sinking Funds! I still have to delve into the investing world as I am prioritising the mortgage, but I am excited to eventually get there 😊 Thanks, Ruth, you have been so instrumental in this journey!
You know my journey Ruth as you interviewed me as ‘Ashley’, and I've been super slack since getting mortgage free and have invested my cash in shares (US500). I also invested in VC Funds (mostly tech based) via Punakaiki as I felt that I knew this area given my profession, and I wanted to support young Kiwi businesses that were growing fast. However, I took lots of time off to just spend with my horses and my other animals because that's what fills my cup. We talked about how you didn't need a lifestyle block just because you've got horses, and I really love my communal grazing situation. However, because of the expensive Transmission Gully road going through Wellington from up the Kapiti Coast and because I'm a home lover, not a property speculator, I've been priced out of the market. We're going to lose our lease land to create a carbon sink and more trees, which is a sad loss to the community and to kids growing up in the area where you now have to have loads of cash to enjoy horses. I've taken this as an opportunity and am looking at the next chapter in my life - which means me buying some land for the horses, but instead of me buying a tiny place for $2,000,000 and stressing out with that huge mortgage and having the land but not the time to spend with the animals I've bought it for, I'm looking elsewhere in New Zealand for cheaper land. So, like you, I might be relocating to a different area so I can still embody the principles of FIRE (financial independence retire early), and by thinking differently, I can have my cake and eat it too! It's still in the infancy/planning stages as our land isn't going for another 2-3 years, but it feels great not to have to worry about being in the grind.
As a university student, money has always been on my mind. Recently, I discovered The Happy Saver podcast on Spotify and have been listening intently for the last couple of months. I have also read The Intelligent Investor by Benjamin Graham to further extend my knowledge beyond what I have studied in class. I have reduced my unnecessary spending and invested small amounts of money in growth funds on both Hatch and Sharesies with the aim of building up a portfolio over the coming years, as time in the market will always beat timing the market.
I think the main thing I have changed is that I now question every "just for me/just because" spend. e.g. takeaway coffee/manicure. I'm always thinking, "Do I really need it or how about I hīkoi around the store for a bit first?” If by the time I've walked around and looked at a few other things (calculating all the while), I often end up with either nothing in my hand as I leave or only one or two things from my list of things to get. Some items, I have had them on my 'to buy' list for nearly a year. If it's still there after more than a year, it gets removed and never purchased at all. Such a huge change for me - and a good one (thank you).
While ironic a contest is here while I was thinking about how I have improved, I wanted to get in touch with you specifically as you and many articles, books, podcasts and people have helped me change in less than four months and changed my life. My background in life and money was not the best, and I was scared to take full control of my financial life. Thank you so much 😁
Since 2020 (my financial turnaround), I've gotten rid of my credit card, stopped relying on the bank of Mum and Dad, set up Sinking Funds and an Emergency Fund, refinanced my mortgage to pay it off faster, setup investments outside of KiwiSaver, switched to a lower fee KiwiSaver provider, increased my income (including negotiating offers) and had many conversations with friends and family about money and life goals.
Set up a monthly transfer of $50 to a Smartshares Total World Fund ETF.
Marrying up! My wife is awesome; knowing we're a money team together has been the best thing to improve our financial situation.
My financial situation has improved through the compounding of small steps, but my single best step is to simply write down, in a notebook, every cent I had spent the night before my next pay. This super simple step helped me see where my money was going and to be honest with myself. It helped me to stop living paycheque to paycheque, to save up for things or those annual bills, and to stop buying items on hire purchase. It has helped me save my Emergency Fund, and it has helped me to invest a portion of my pay every pay.
I was the follower that while listening to one of your podcasts about student loans, paused and paid off my student loan of $52,000! An instant 12% pay rise 😊 No greater peace of mind than being debt free, just saving for our first home, investing and budgeting for family trips away - all while in a recession.
Whilst not totally improved, I am more conscious of what I am spending my money on. Having cash in my wallet helps reduce my spending as I don't like to part with it (happy on eftpos), and making and sticking to a ‘zero-based’ budget helps, along with Sinking Funds. Listening to your podcasts also gives me titbits to help improve my thinking and spending habits. Thank you for sharing the stories.
I've always been a good saver, but no method to my sometimes madness of saving, of needing to save just in case. Learning more about finances has given me methods and reasons to save. Having emergency savings and rainy day funds and understanding when and why to use them. Then learning about investing because just saving money won't get you financial security. Learning more has made me feel more secure and given me the freedom to then spend on the things I enjoy and will bring me joy. It's helping me out of my scarcity mindset in a healthy and meaningful way.
Paying off my mortgage and, counterintuitively, getting divorced and having a much better relationship with money when I eventually remarried through that process!
I have kick-started my financial journey thanks to Jeanette Hall and the TWOA Money Management course in Wairarapa. Consequently, I have started a budget spreadsheet for planning. As an output, I have: Changed phone contracts - saving $100, which goes into my Emergency Fund. I have a Sharesies account ($400 so far!) I am using PocketSmith for financial tracking. I have created automated drawings and bill payments and boosted my KiwiSaver contributions. I now consider our household costs with each potential spend. My wife and I have also instilled these values in our kids and have regular payments into their savings accounts.
During the first Lockdown in 2020, my partner and I read our first finance book ever, The Barefoot Investor, as recommended by Ruth in one of her The Happy Saver podcast episodes. We are both over 55/60 and shamefully never applied ourselves seriously to managing our finances. Now I know our net worth and our monthly/annual spending/income. We've invested a lump sum into Index Funds and are aggressively adding to this as well as our Retirement Fund. We have future plans to live more simply and travel by selling our home and moving. Scary but a positive move towards living our lives in a way we want to and in line with our values. Ngā mihi koutou.
We have been using the 50/30/20 rule these last few months, which has made a huge change. I think it's because it makes us take a more active approach, but it's also made us feel more positive - taking charge of our money. We have three teenage girls, and it's an expensive time. It's hard to say no to teenagers who just want to fit in, but our new money approach is actually helping with that. And it helps the girls, too - a great tool for them to use going forward. Thanks for all the tips you send.
Several years ago, I became super frustrated with being a low-income earner, not having any retirement savings, and not being able to take a decent family trip. I read The Barefoot Investor, and something clicked for me. I then read Profit First, and away I went. We booked a family holiday about a year later, and I sorted my business finance. We now invest and save regularly and have an Emergency Fund. We both lost our income in Covid, and it was relatively stress-free due to savings and Emergency Fund.
We started following Dave Ramsey's Baby Steps when at uni 15 years ago and bought a house in Auckland a few years later. Moved to Wellington and bought a cheapy in Lower Hutt. Sold our Auckland house, and we've been saving and investing since, with the aim of moving closer to town, to a suburb with better public transport. We've replaced two Holden Commodores with EVs, saving $1,500 per month in fuel. My partner was able to buy a small business to fit within school hours when he previously was a boatbuilder working unfriendly hours!
This is such a work in progress! I'm still learning and trying to get on top of our financial life. I want to show our three kids what healthy habits look like that still allow fun and adventure in life. I think firstly, just owning how little I knew or paid attention to was the first step, then slowly taking more responsibility for my financial picture and needs. Tracking spending has been huge, so I can understand our true costs of living, but I'm still trying to translate that into some structure to work in a sustainable way. Things I'm proud of over the past four years have been setting up Sharesies for me and the kids and getting our KiwiSavers sorted. I show my kids how they're all tracking, and even though I only make really small contributions monthly, they are interested in watching how it develops over time. Hopefully, we're all learning!
Trading down as the value of my home went up to be mortgage free sooner.
Being conscious about spending and asking myself if I need it or want it.
Living on half of my income – half my salary goes into an everyday account and the other into separate investments and savings.
Saving 10% into KiwiSaver.
Using passwords such as Debfree25 (become mortgage free in Jan 2025), $avehard27 (saving half my income to the year 2027 when I turn 65), and Retire600 (financial goal for retirement).
I gained confidence with passive investing in the Smartshares investments that you have been investing into. My toddler is only 22 months old and is already $6,000 rich. I have slightly more in my portfolio. I don't even think about it anymore. I am putting $100 each week into Smartshares NZ50 and USF (50% split between the two) for both the toddler and myself. I am also paying down more on my mortgage since I have it fixed for five years at 3.7% with about $400,000 to go. Ever since I got my mind set on FIRE/Work-Optional, I have been thinking of even moving to Australia in an effort to get into cheaper housing, better salary opportunities, and better and better investment opportunities for our small and potentially growing family. Thanks, Cheers!
After many years of diversification and money managers and losses and below the performance of their own benchmarks, I sold all my personal investments and put it all on one United States IT stock I had chosen, understood and been following for years, Great outcome within a few months. 😊
I'm semi-retired at 70. I continue to work one or two days a week, which keeps me fit and socially engaged, and it means I can live off my super and pay without dipping into my KiwiSaver. My husband and I go to a balance and strength gym for oldies. We enjoy our life.
After being in retail for 28 years, my husband and I decided it was time for some work-life balance. So two and a half years ago, at age 55, we sold our business and cashed up. We then owned a debt-free home (approx $1,200,000) and put $800,000 in the bank. Have spent $300,000 on a motorhome and a new boat and lived for two and a half years after a house sale. Hopefully, at the end of the year should still come out with that $800,000. We did very well on a couple of spec houses and have one more just starting (which we were already committed to before the downturn). Have always been interested in the share market but not confident to do it, but after stumbling upon you when listening to Frances Cook, I couldn't help but start listening and reading and am learning heaps. Keep up the good work!! Have read Simran Kaur (Girls that Invest) so far but am keen to read so much more 😊
I owned a business, bought a property, got sick and used my income protection policy. Now I have time, I am researching Financial Independence and trying to get my partner on board so we can make the most of things!
We went from knowing nothing, paying the minimum on our mortgage, to nine weeks with no income and huge debt and anxiety for five years; to now being anxiety-free and, finally, mortgage free. All on a low income with two children.
When mortgage interest rates went down, so repayments went down, but we kept the repayment at the original level and paid off the mortgage asap.
With a high mortgage and low income, we couldn't eat out or take out. My mother-in-law sent us $100 which we nicknamed "the pleasure pot". We, two adults, shared a coffee, and our two daughters negotiated between themselves for a shared hot chocolate or a shared muffin. We decided as a family if we were going out. My daughters still negotiate expenses and value what $5 is worth.
Since finding your podcast in early 2020, I have used other people’s stories to help focus my financial priorities. This included paying off $10,000 credit card debt and ~$18,000 in student loans (a UK loan). After which, I built savings of $40,000 for a small apartment, all the space I need (the rest of the deposit is from the first home grant and KiwiSaver, a total of $110,000) and an Emergency Fund of $10,000 emergency money. I’ve started a long-term share investment, paid for overseas and domestic holidays in cash and this year, I increased my income by $15,000. From sinking to winning 😉 Thank you!
Still trying to improve my situation and have made mistakes along the way - mostly by copying others or rushing in without properly researching. But making sure I never take out a loan on a depreciating asset and paying cash for anything I want has always worked well for me. All about living within your means. Thanks, Ruth; love your website! 😊
Tracking has helped a lot, and allocating money as I get paid, rather than letting it sit and be spent on silly things.
In 2018 I realised the power of budgeting and seriously got into it! We managed to see where we were frittering and started planning, and two years later (at the age of 42!), we (my partner and I) were able to buy a home for our family. We have been working to do the house up to increase its value, and do hope to sell it in the short to mid-term and buy a cheaper property to decrease our mortgage payments. Have been talking today about boosting our KiwiSaver when possible (we are self-employed and contributing enough to get the $521 Government contribution).
I make coffee at home. I've taken a wardrobe freeze. I use Sinking Funds. Out of necessity, I create different streams to generate income and find it a great problem to solve. I buy good quality items I need from garage sales and op shops. I ‘ask’ where I can instead of spending, e.g. the neighbour for lemons instead of buying them. I trade skills with friends. I keep a positive mindset that everything is figure-out-able, and the pathway to improving my financial situation feels amazing with every single teeny tiny step of progress and choice. I cancel subscriptions that I don’t get to maximise the use of.
A divorce five years ago was a life-changing situation for me. A friend recommended reading The Barefoot Investor, and it has been an amazing journey for me since. I had little financial literacy and have progressed from being on a benefit to living paycheque to paycheque and have now purchased a property at Lake Tekapo and built a small Airbnb studio on to it to generate income. I feel like I'm in control of my finances and, thus, my life. I love listening to your podcast and have been following it for years. I share it with my two daughters, one who is at university in Dunedin and the other who is 13 with a first job. I hope to instil what I have learnt about debt and finance into them. Thank you for all your podcasts and tips.
Last June, I did a short online course called ‘Money for Artists’, and one task was to write down all our outgoings. I found the task so overwhelming that I had to stop the course and try to get to grips with all the money going out from our various accounts and subscriptions I was paying. I spent the next two weeks getting everything into a spreadsheet. I was horrified to find that the amount we spent on food was more than we were spending on the mortgage. Now I know where everything is going, and I have spent time listening and reading about money. Feeling more in control as I have reduced our spending drastically, putting more into the mortgage, which will reduce by seven years. At the moment, I’m selling some possessions, looking at side hustle ideas, and we are building up our emergency fund. I’ve learnt a lot from people’s money stories on your podcast.
I started investing at the age of 38 in multiple funds (got so excited I couldn't choose). It's now two years on, and I have broken the $5,000 mark, which is a huge achievement. From being phobic of all things finance to feeling like I have control over my financial life is amazing!
I'm 23, and I was inspired by you to start investing! I thought it was too difficult to do or understand before (especially because numbers aren't my thing and I don’t have a finance background), but everything you write breaks it down and made it easy for me to do. I have just made my first investment today via Kernel and feel like I've made my first step to (hopefully!) buying a home and having a future that isn't weighed down by money dread. It's made me feel empowered and in control, which is a cool feeling to have in an expensive country like New Zealand and even cooler to feel at a young age.
A good friend loaned me a copy of The Simple Path to Wealth, and like you, it changed my life in the most positive of ways. I only wish I had the opportunity to read it sooner. I have never owned a copy of the book but often find myself referencing the JL Collins website and his Stock Series, on which the book is based, for reinforcing how to “stay the course”. We recently downgraded our home and, in turn, paid off the mortgage. With no debt, we now channel around 65% of our income into a low-fee US500 index fund, and the options for early retirement are looking great.
Our financial position is certainly not as strong as it was 18 months ago, but it would be a whole lot uglier now if we hadn't built a significant war chest over the last 12 years for those times that we know might come, but hope never will. A significant medical matter has meant a long time off work/reduced hours for one of us - so that war chest has well and truly been emptied. With good health now reinstated, we can get back to rebuilding that fund. We both agree we'll never be without one!
We got off the treadmill of consumer spending and started investing for our future instead. We don’t miss constantly upgrading our stuff - you actually discover how little you really need to buy to enjoy life. We’re now debt free and saving and investing up to 60% of our income to give us financial freedom in the years to come.
We've become net-worth millionaires in 12 short years! Over the years, we've been strict with budgeting, having emergency funds, and savings, allowing us to take advantage of other cost-saving opportunities. We've invested in shares and property with a long-term view of being able to take our time back. It's been a team effort, working to our individual strengths - and absolutely acknowledging our privilege in this life!
My mother was always a saver. She is the reason I am mortgage and debt free in my late 40s. I have been saving money since I was seven years old, taking my weekly pocket money to school, where the ASB bank collected it and put it into my savings account. I have always preferred to save rather than to spend, although this has not stopped me from travelling and living overseas, and I have not denied myself anything. I spend cash, I do not have a credit card and have automatic payments into accounts for expenses and savings I don't touch. I never buy anything on credit...other than my house, I suppose and worked hard to pay it off as fast as I could. The most important change I made was to stick to a budget and pay by cash. I wished I had done it sooner because it was so easy once I got into the swing of things.
I try and grow as many vegetables as possible and also eat vegetarian where I can. We are also lucky to have a lot of fruit trees, so staying out of the supermarket saves us a lot of money. Having sinking funds and no debt has helped us budget and save/invest.
Paid off all debts, including mortgages. Such a great feeling not to owe anybody anything in this financial climate!
I’ve now cleared my consumer debt and am working on the next steps of a mix of investing (outside of and in addition to KiwiSaver) and clearing the mortgage. Oh, and working alongside my teens to figure out their money journey and plans for study etc.
Setting up Sinking Funds has been life-changing. I now have accounts for rates, insurance, tax, a new car, and a contingency fund. It has taken so much stress out of my finances, knowing the money will be there when the bill is due. I actually feel wealthier because I am now someone who can always pay all my bills on time, even unexpected ones.
We moved to NZ in 1998, bought a 2.5-acre section in the Waikato, moved a very small house onto it, and added a large garage and sheds a few years later. My husband had a concrete curbing and paving business. He employed one labourer. I was looking after our three young children, grew vegetables, raised some calves and assisted my husband with the office work. Financially we were struggling. We had bought our house with a 95% mortgage and were owing on the house about $150,000 at a time when interest rates were 9%. As we were living in the country, we were reliant on two cars and travelling quite some distance to get to the nearest town. When our children were 5, 7 and 10 years old, I enrolled in a three-year nursing degree, and one year later, my husband sold his business and did a teaching degree. Soon after my husband completed his degree, we moved to Palmerston North for his employment, and I started work at the hospital. Our income has greatly improved, and we only need one car as we travel to work mainly by bike. Unfortunately, the house we are living in is a lot more expensive than our previous one, which eats into our earnings. Having two reliable incomes above the minimum wage has really made a difference to our living standards. I wish that we had chosen this path much earlier in life.
Spent frugally until we could afford to spend consciously. Constantly traded time for money until we could afford to trade money for time. Strived for more until we learnt to feel content with ‘Enough’. Bought the house we needed, not the house we wanted. Aggressively paid off our mortgage while staying open to leverage. Lived by the motto, “Use it up, wear it out, make do, or do without”. Dollar cost averaged every week while ignoring the news. Got the Big 3-4 right and then didn't sweat the small stuff. Never forget to have fun along the way 😊. Aged 35.
We are improving our financial situation by sticking to the game plan. Aggressively paying off mortgage debt. Well, as aggressively as we can at the moment with young kids and me working part-time. And investing for our retirements.
Having grown up with no knowledge of investing and having been directed by friends to Mr Money Mustache (and somehow, in turn, finding out about you, Ruth), my wife and I started to reflect on our financial situation, thinking about how we would want our children's future to be. To that end, we've learned a little more about investing, have nearly $20,000 invested now, and are working towards actually sticking to our budget. I've nearly paid off my student loan, and we have a more positive mindset and relationship with money, seeing it as a tool for fun and freedom.
Hi Ruth, I quit my job last year to spend time with my family and travel the world. Fortunately, I discovered your podcast on Spotify and listened to it throughout my travels in Thailand, Vietnam, and Japan. That gave me a wake-up call moment that there was no point in working so hard to earn money if I didn't even understand it. When I came back to New Zealand, I dived head first into the personal finance rabbit hole with a relentless determination to get good at it. Fast forwarding to today, my partner and I have set up a zero-based budgeting system (YNAB) with fortnightly financial date nights, invested aggressively into index funds, and read many books (currently The Simple Path to Wealth). We also get up at 7am every Tuesday to attend Rebel Finance School. Thank you for all the inspiring local stories you've put out. I'd love to chat more when we get a chance. I hope to connect with other passionate FIRE (financial independence retire early) pursuers as well. If there's a community in New Zealand, please let me know!
I read The Barefoot Investor about two years ago, and it totally changed my approach to managing money. I grew up in a family where money was always tight, and so I had typically been mostly conservative (esp. with retirement savings) but hadn't been allocating 'buckets' for the everyday. Adding this was a game changer for me, as well as restructuring our mortgage, and I'm pleased to say we are well on our way to financial freedom as a family, although there's still some journeying to go (I'm 41, hubby 43 and our daughter is 14) I feel like we are on the right track, and doing a bit more active planning has meant we can allow ourselves to take a few more calculated risks (like buying a business, eek). Oh, and our teenager is also learning along the way, with her own savings accounts set up (she's all for compound interest!) Sorry, longer than 100 words, but thank you for the blogs.
Before jumping into investing, I studied different approaches and found that passive investing, with locally-issued ETFs and index funds just makes sense. So, I set up a simple portfolio focusing on three equity assets: developed countries, New Zealand, and Australia. Now, I just make periodic contributions to the asset with lower balance. No stress, no second-guessing, just steady growth. This strategy has given me a sense of control aiming at early retirement.
All these finance books! There was no such thing available in the New Zealand I grew up in. I had never heard of a budget till I married. I wasn't a spender, but it was money in and money out in my mind. It took me years to come around to the benefits of budgeting to get ahead and start saving. What helped me the most was seeing our money grow. Over time it became quite a lot, and now we are able to afford those holidays we could never have otherwise. I'm still learning and still thinking about ways to get the best out of the budget. We have passed our knowledge on to our children. Hopefully, they have taken it on board.
Where do I start? From living paycheque to paycheque to reaching Coast FI, in like, three years!
Before learning from The Happy Saver, I had always had a save-more-than-you-spend mentality; however, I didn’t have a solid long-term financial goal. Now I understand a lot more.
Over the past year, I've been educating myself more about money. The Visa card has been paid off, and we're now focused on increasing our Emergency Fund. The goal is to save at least three months' worth of expenses to have aside for a rainy day, then make some extra mortgage repayments next year. It helps that I now have a side hustle. Having a cash surplus really is key.
The best thing was learning to track my money. It gave so much insight into how I was actually spending money and then got me thinking about ways to use it more wisely and make it go further. I felt more grounded and secure, even in tough times, because I knew where I was with my finances.
We returned to New Zealand six years ago with $20,000 of debt from the move back and no savings. We both took pay cuts to return to Hawke’s Bay, and it was hard to go without what we were used to getting in Europe. We rented when we arrived but dug ourselves out and were able to buy a house four years ago, which has been amazing. We now have no credit card debt and managed to renovate the bathroom and kitchen and buy a spa. CAP money, followed by YNAB, has been the method to track it all. Not too bad, as I turned 50 this year too.
Hi Ruth, I've been an avid reader and listener of your blog and podcast and have learned heaps. Thank you for sharing your journey to FI. I have started Sinking Funds, budgeting wisely and paying myself first before spending what's left. All these have made a difference in my financial situation. Keep up the great work! 😊
After a friend recommended The Barefoot Investor and The Happy Saver podcast five years ago, I discovered the world of personal finance and have devoured content ever since and incorporated this learning into my everyday life. I managed to save about $90,000 and, from there, bought a house on my own, and, apart from my mortgage, I have no personal debt. A big difference from the six maxed-out credit cards my ex-husband and I once had.
I moved here from India seven years ago and worked hard to settle down in New Zealand. I was always a good saver by nature but had no idea how to earn more money until I started listening to New Zealand money podcasts and reading good money books.
After becoming a single mum a few years ago, I ended up in an OK position, luckily, where I was able to buy my ex-husband out of the house. But with a mortgage by myself, two teens and interest rates going up, I realised that I needed to look at where my money was going. By reading (The Barefoot Investor, Cooking The Books and The Happy Saver) I now have a much better understanding of where my money is going, an emergency fund, and I'm whacking my debt down. And I have an understanding of my net worth, which is growing by the month. That's an incredible feeling for someone that never thought they'd ever own a house.
I LOVE being in control of our money. It's very freeing to have no debt and know we have money to cover everything and more. We find we like to sometimes give some away, i.e. we have got a very sick neighbour who is trying to raise money for medication. We gave her $200 because we have that freed-up money to be able to do this for people. That blows me away, as seven years ago, we would have been struggling to do that!
Still trying now retired.
Paying off our mortgage was the best way to improve our finances. Makes us feel great as well.
We sold a poor-performing rental and stopped buying individual shares. This allowed us to build up an Emergency Fund and focus on a broad market investment strategy to complement our existing KiwiSaver investments. Tracking net worth and current expenses has allowed us to develop a retirement plan that is based on real figures and is tailored to our individual needs.
Believe it or not, I have improved my finances through online grocery shopping. No more impulse buying, just the bare essentials to be eaten and no wastage. Delivery is a bonus as there are monthly specials.
I met and married my beautiful wife when I was 24, and she was 20. I had $16,000 of student debt, a 1976 Toyota station wagon, and little else. I was earning next to nothing as an apprentice builder, and my wife was earning slightly more as a gas station attendant. Within two years, we had two kids and were down to one income which was now only slightly more than next to nothing, still as an apprentice builder. Through sheer necessity, we learned to budget, and then save, and then invest. Our income slowly increased, and we had saved enough to buy our first house 12 years later. Now 22 years after marrying, we own four properties and plan to start our perpetual OE in two years.
Love your podcast and blogs! I have improved my financial situation by just being more aware and schooling myself up on personal finance. We’re now about one year away from paying off our mortgage (we’re mid-40s) so now I need to learn as much as I can to make a plan for what’s next.
I came across your podcast from your interview with Frances Cook. I love your podcast because you read stories. Your voice is easy for me to listen to and understand, as English isn't my first language. My take from your podcast is that I also need to invest besides regular savings for Sinking Funds. Also, an Emergency Fund is proven to be a blessing in an emergency situation. End of last year, our parents were very sick, and one of them ended up passing away. Because of the Emergency Fund, we could see them back home in Indonesia. I'd like to learn more about money. Especially in the middle of everything being so expensive here in Aotearoa. Thank you, Ruth.
I have just come across your page via a MoneyHub email. In all honesty, I haven't improved my financial situation - it's shocking. This is why I would be an ideal candidate to receive one of these books, as I need all the help I can get!
It's been a slooow process, but the gains in life confidence and contentment have been amazing! Over a several years process, we've sorted my KiwiSaver, my husband's Unisaver, opened KiwiSaver accounts for both kids, made a budget, started saving regularly, tweaked the budget (repeat), talked about our priorities, made goals, tweaked goals (repeat), and most recently started investing. I have a much better understanding of money now, and it makes a huge difference emotionally knowing where we are and where we're headed.
After discovering The Barefoot Investor in 2019, personal finance has meant I was able to see the bigger picture and think outside the box when in 2020 Covid decimated my business as a Homebased Travel Broker. Keeping an eye on our finances throughout having 2 babies and not doing my chosen profession for almost 3 years meant that we have come out of it ok. I think if we didn't have the knowledge beforehand, we would have been in a whole lot of trouble! I've selected A Simple Path to Wealth only as you always talk about it, and my public library doesn't have it (even though I've asked!) but would be thrilled with winning any other book.
My husband and I stepped up our savings game and moved some of our savings into a bank with higher interest rates to maximise our returns. We have also started using term deposits and invested in more index funds.
