My Money Sorted: Kate

What’s the best money advice you’ve been given?

When I was in my early teens, my grandpa started teaching me about the stock market and how investing worked. He introduced me to the concept of passive income and told me to consider how I could make my money work for me, rather than just work for my money. It was an eye-opening moment, as the only financial advice I’d been given up until that point had been to work hard and save, save, save. Although those two things are also still very important to me, I’m glad I had the opportunity to learn about other ways to increase personal wealth.

Are you a spender or a saver?

I’m definitely a saver; however, I don’t mind spending on things that are really important to me. My partner, Dan, and I live a fairly minimalist life and avoid buying stuff just for the sake of it. We try not to be wasteful, so we often repair things or give them a second life. That said, we do spend generously on the things we value most, such as travel, health, and spending time away with family and friends.

What’s a memorable money moment you’ve experienced?

When I was eight, I set up my first ‘business’ – a stall at the bottom of the driveway. I collected tamarillos and tangelos from our orchard and made ginger crunch to sell for 50 cents a piece. I spent an hour waiting for a potential customer to appear on our rural road and eventually made my first $2. I’ll never forget the elation I felt after receiving that money and knowing that I earned it all on my own. I think that sparked a bit of an entrepreneurial spirit!

What makes you feel Sorted when it comes to your money?

Being organised and having a budget. Dan and I sit down at the beginning of the year and write down our saving goals and money goals in general. We then set out a monthly budget, with certain amounts allocated to bills, food and other essentials, as well as some fun money for travel and the like. We decide how much we’re going to invest in certain things, and fit that into the budget too. Being conscious of where our money is going each month helps to keep us on track and not spend unnecessarily.

Also, I’ve been self-employed for a few years, and I find that keeping key financial dates in my calendar helps me to feel sorted in the business sense – for example, knowing when my GST returns and tax returns are due, as well as provisional tax payments.

What money beliefs have you inherited from your friends and whānau?

My parents instilled in me a strong work ethic and taught me to never live above my means. They came from humble means and worked hard to get where they are, but they’ve never lived a life of excess or spent money on lavish things. Instead, they taught me to value money and spend it on the things that matter most. For them, that was travel, whānau, friends and learning. I have a similar ethos and tend to focus my spending on those things.

What would your bank account say to you right now?

It’d probably say, “Doing well, but could do better”. I’ve made some great financial decisions in the past, but I’ve also made some very average ones. I’m always trying to learn and reassess whether I’m making the best decisions for the financial goals I’ve set. I try to listen to financial podcasts, keep up with the news, and continually assess the performance of my investments and the savings I’m making.

What’s been your proudest money moment?

When I paid off my student loan. It was such a relief to have it gone, especially knowing how much effort had gone into paying it off. I still feel proud every time I log in to IRD online and see $0.00 on my student loan balance.

When you think about your retirement, what do you see?

A simple, healthy and happy life, surrounded by friends and whānau. In all honesty, I don’t see my retirement being that different to how I live life now. We’re not waiting until retirement to life our best lives; Dan and I make a big effort to ensure we enjoy the now and go on adventures and spend time with our loved ones while we can. I think my retirement will be the same, but perhaps I’ll just be running a little slower and going to bed a little earlier!