Just wondering…
what you’re wondering?

A budget is really just a plan for your spending – it’s a big help in making sure you spend on what you really want. It's far too easy these days to find ourselves spending on things we never intended – a bit here, a bit there, and there's nothing left to help us get ahead financially. Here's Sorted's budgeting tool to start your plan today.

Say you've got an extra dollar in your hand – where’s best to put it? Wherever gets you the most back. That's typically paying down debt, especially if you're carrying costly debt from a payday lender, store card or credit card. Remember that it’s important to save up a starter safety net first, though. Paying debt off is almost like getting a "sure return" of that high interest rate, and the interest on savings is typically much lower. Here’s more on how you can tackle your debt today.

Your goals, definitely. A budget is simply a plan to flow your money towards what you want, to live your best life. Budgeting helps for many reasons: to make sure we don't spend more than we earn, that we have enough for bills, to make ends meet. But the key thing with budgeting is to make a surplus – to have extra money left over and not a deficit. Once you do, you've got money to aim at whatever goals you'd like to set. Here's where to start your budget.

Saving for an emergency fund or a safety net of $1,000 is a great place to start, and then you can tackle any high-interest debt you're carrying. If you focus only on tackling your debt and an emergency pops up, you can end up having to borrow more. With a safety net, however, you can handle those unexpected events like a car repair or trip to the vet, without sliding further into debt. The goal is to get out of debt for good, so here's more on starting your safety net.

Using a budget to plan your spending and sticking to it not only helps make ends meet, it enables you to reach goals for the short, medium and long term. Most things we'd like to achieve in life take money, and that money needs saving if we want to avoid too much debt. Once you've got a surplus in your budget, you can make sure it gets saved automatically into separate accounts, where it can build towards what you want. To get you started on thinking about some goals today, here's our goal planner.

Budgets are for anyone who is managing money coming in... and going out. Most of us who have to make choices about our money can benefit from a budget. It's not just for those of us having difficulties making ends meet. A budget helps us feel in control, instead of just wondering where our money went. Here's our budgeting guide to help you start your plan today.

It helps to have a plan! To build a great budget that you can stick to, it helps to first know your numbers. By tracking your spending, you’ll start to see where your money is going, and you’ll be better placed to make decisions about where you really want your money to go.  The key is to capture everything you spend for a month or two to get your full spending picture. There are several apps designed to track spending on the go. You can also download your past three months of transactions from your bank, which really helps to see the patterns. Here’s more on money tracking.

It depends on your plans for the money you’re putting aside and how soon you want to use it. Term deposits with a bank, credit union or building society are convenient for saving. They’re relatively safe places to park our money and earn a bit of interest, but returns on bank deposits aren’t as high as other types of investments. You’ll also typically be taxed more on term deposits than PIEs like KiwiSaver, as they are taxed at different rates. Here’s more on investing in term deposits.

In order to not follow random money tips from just anyone, it helps to get professional, independent personalised financial advice. (It doesn't have to cost an arm and a leg.) Here's our guide to getting advice. Whichever kind you need, it helps to shop around, meet with a few advisers and find a good fit. For independent financial advisers, see Mary Holm's helpful page. For advice about debt and budgeting, you can discuss your situation – even anonymously – with the team at MoneyTalks, which runs a free helpline. Easily chat online, call 0800 345 123 or text 4029 today.

The word "budget" can make us feel like our hands are tied, so it's better to think of it as a plan for spending. First up is to see whether you are spending more or less than you've got coming in. If you’ve got a surplus, you can funnel your extra money towards what you want, and achieve your goals. To help start your plan today, here's our budgeting tool. 

The classic "envelope" or "jar" technique helps give every single dollar a job to do. (Sorted's budgeting tool is a digital version of this.) With this way of budgeting, you add up your incoming money and then divide it into the different categories you need to spend on, like your regular expenses (rent, mortgage, phone, power, insurance) and your irregular ones (like food or petrol, which can go up and down). Here's our budgeting tool so you can start your plan today.

The first step is to add up your incomings – whatever money you have coming in. Next up are your outgoings, including regular and irregular expenses. To build your budget, it needs to be as accurate as possible and reflect the typical way you spend money. This makes it easy to see how your spending compares with what you earn. You'll either have a surplus (money left over) or a deficit (when you spend more than you bring in). To help you start your plan today, here's our budgeting tool.

Incomes can be lumpy when you're a freelancer, depending on the gig or the project. To start, it helps to figure out the minimum amount of money you'll need to meet your expenses. When you've worked out what you need to get by, you then know that what you earn above that amount each month needs a plan. You can set aside a percentage that will allow you to make sure you're working towards your goals, even when your income goes up and down. Here's more for contractors.

Congratulations! Making a spending plan for when baby arrives is about budgeting for reduced income, and for the additional expenses that come along, like baby gear. Many couples find it helpful to do a test run on a single income before baby arrives. This gives you an early perspective on your expenses and any adjustments you need to make. Here's more for when you're planning for your new arrival.

Buying a house can take some extreme saving, especially to build up a sizeable deposit. A spending plan (which is what a budget is) helps. It lets you see how much you can put towards a deposit as you earn, and gauge how much you'll be able to build up to buy your home in the years to come. Here's more on purchasing your first home, including government help and KiwiSaver.

Everyone needs fun money to splurge sometimes, so it helps to make it part of your spending plan. Knowing what your limit is also takes the guesswork out of it. There are many rule-of-thumb budgets out there, like the "50-30-20" rule for needs, wants and savings. But what's most important is that you make your plan to suit your circumstances, and include money to splurge with. Here's our budgeting tool to start your plan today.

Especially when it's far off, it can be a bit of a mystery how much you'll need in retirement. But you can estimate enough to plan ahead. It’s challenging to work out how much you might need for your future lifestyle, but one way is to have a look at what retirees are spending now. Based on if you're planning with a partner, whether you’d like more lifestyle choices, and where you think you'll live, here’s how you can get an idea.

In order to not follow random money tips from just anyone, it helps to get professional, independent personalised financial advice. (It doesn't have to cost an arm and a leg.) Here's our guide to getting advice. Whichever kind you need, it helps to shop around, meet with a few advisers and find a good fit. For independent financial advisers, see Mary Holm's helpful page. For advice about debt and budgeting, you can discuss your situation – even anonymously – with the team at MoneyTalks, which runs a free helpline. Easily chat online, call 0800 345 123 or text 4029 today. 

Good advice is gold, particularly when your circumstances have changed or you are making big money decisions. Life brings big choices sometimes, like when taking on a mortgage, protecting what's important with insurance or a will, or investing for the long term. That's precisely when you need a good financial adviser in your corner, and the best way to find one is to shop around before you choose. See our guide to getting advice to start your search.

Most of us (unless we're crazy rich and will be able to pay for whatever happens) need different kinds of insurance at different stages of life. One way to prioritise what insurance you need is by covering your people, then your money, then your stuff (in that order). Each insurance product is good at doing one or more of those things, and it's important that it's the right one for you. And when you're working with an insurance adviser, they can confirm that a policy does the job you need it to. Here's more on prioritising insurance.

Think of an insurance adviser like a tailor, but without there being enough retail stores where you can pick clothes for yourself off the shelf or rack! (They're a big help.) We're into shopping online for just about everything these days, but insurance is difficult to get right without an adviser. The policies can be complex with lots of options, so it’s hard to know exactly how they work, and more importantly to make sure they work when you need them to. Here are some things no one says about insurance.

It helps to review your insurance once a year, but especially whenever you experience huge changes in life, like starting a family or buying a house. Many of us wait too long to get the right insurances in place, and then end up holding on to them a bit too long as well. It needs to work with where you are at in life. Especially when something big happens, like a wedding, buying a home, or having kids, your insurance needs to keep step so you stay covered for the right amounts and potential events. Here's our insurance guide to get started.

It's pretty competitive in the world of companies who provide us things like power, internet or phone service. But when one of them suddenly lowers their prices, we might not hear about it. So it helps to review our providers at least once a year. Because new players and new offers come along regularly in these industries, we could save hundreds by reviewing and switching to better deals out there. How much difference would it make in your budget?

When it comes to tracking money, the key is to capture everything you spend for a month or two to get your full spending picture. There are several apps designed to track spending on the go. You can also download your past three months of transactions from your bank, which really helps to see the patterns. Here’s more on money tracking.

Budgets are for spontaneous people too! The trick is to have money for those spur-of-the moment expenses as part of your spending plan. Knowing what your limit is takes the guesswork out of it, but it also gives you the flexibility you need. What's most important is that you make a plan that’s right for you. Here's our budgeting tool to start your plan today.

Rent will probably be your biggest ongoing cost when you’re flatting. You can look online to get an idea of typical rents in your desired location. Then, using our budgeting tool, you can work out how rent will fit into your overall spending plan. You’ll also typically need to plan to pay a bond of up to four weeks’ rent, plus two weeks’ rent in advance, so you’ll need to budget to save up. Ideally it would be good to keep your rent to 30% or less of your entire budget, and all your living expenses 50% or less, but that’s not always possible.

Rather than focusing on which insurance provider, start from what you are wanting to use your insurance for: covering your people, your money, your stuff. Which companies have the insurance products that will do that for you? It helps to focus on the product, and shop around to make sure your policy will do what you need. And if a provider can package together the insurances you need and save you money, even better. .

This depends on how much in your life you have to protect (and of course has to fit into your budget). There’s so much that can be important to us: the people in our lives, our present and future money, and all the stuff we own. Insurance products are about covering your people, your money, or your stuff (hopefully in that order). Here’s more on the types of insurance out there to choose from.

Insurance premiums are due regularly, each month or year, and they don’t stay the same. They typically step up over the years, to the point that they can get uncomfortably high. One solution when they do is to shop around to make sure you are getting the most value. You can also use an insurance adviser to reconfigure your current insurance settings so that they fit your situation, and your spending plan.

There are various kinds of advisers who specialise in different areas. You can get advice for budgeting, borrowing, insurance, investing, legal issues, mortgages, and general financial planning. If you could use some professional advice in any of these areas, it helps to shop around, check the adviser’s references, and even talk to former or existing clients. Here’s some help to get the right advice for you.

They can be, but it depends on your plans for the money you’re putting aside and how soon you want to use it. Term deposits with a bank, credit union or building society are convenient for saving. They’re relatively safe places to park our money and earn a bit of interest, but returns on bank deposits aren’t as high as other types of investments. You’ll also typically be taxed more on term deposits than PIEs like KiwiSaver, as they are taxed at different rates. Here’s more on investing in term deposits.

More couples these days seem to be managing their money separately, which is good for each person’s autonomy and independence, but not necessarily for communicating. It’s so important to communicate well about money in a relationship. And while it’s only natural that there be differences of opinion, getting on the same page brings many opportunities to get ahead financially that we wouldn’t have on our own. Here’s more for when you’re planning with your partner.

Probably. Having a separate account to funnel your savings into helps it grow and not get mixed in with all your other spending. And the more automatic and out of sight, the better. We’re guessing you’re not just saving for the fun of it, but for goals you want to achieve. Having separate accounts for each of your targets is also useful, not only because you can more easily track your progress, but also in case you need to look at some other investment options for one or other of your goals (like term deposits for the short term, a managed fund for the medium term). Here are more goal-setting ideas.

Before taking such drastic action, it can help to get an accurate picture of where you are at financially. Review your incomings and outgoings, and look for alternative ways to trim and get through the lean times without having to move. The cost of selling and moving could eat into the amount you’re aiming to save. Here’s our budgeting tool to get a clear picture first.

Typically a mortgage lender will want to make sure you have a clear ability to make regular repayments over many years. You’ll need to have sufficient and steady income, enough room in your budget to make repayments comfortably, and a deposit, preferably 20% of the house price. You’ll also need to have applied to a lender to get a letter of pre-approval. Here’s more when you’re looking into how much you can borrow.

Beyond looking for a side hustle to earn more, it may be time to make some cuts. Trying to sustain the same lifestyle after taking a hit to your income can be extremely challenging, and it’s good to be realistic as to whether this is even doable. Unless you have an accurate picture of your incomings and outgoings, you could end up in a difficult debt spiral. Here’s where to see your current situation clearly and make a new plan.

When you have your mortgage on both a fixed and a floating rate, it typically needs reviewing each time the fixed term is up. But perhaps even more often, since you might be considering refinancing (or "remortgaging"). Many people do this every few years, especially when rates are falling like they have been. For more about how to make refinancing work for you, see our guide.

As soon as you have incomings and outgoings, as soon as you have bills to pay, we recommend making your spending plan. A plan allows you to steer your money where you want it to go, making sure you’re in control and headed in the right direction. Here's our budgeting tool so you can start your plan today.

Planning your spending in the near term is one thing (here’s our budgeting tool for that), but making long-term plans for goals like retirement that are decades away is quite another. Even if it feels so far away, it’s never too early to put some plans in place. Here’s where to start when you’re looking ahead and thinking about your future lifestyle.

Congratulations! There are so many beautiful and memorable ways these days to celebrate your wedding in your style, on your budget. Because you can now have multiple budgets in Sorted’s tool, you can easily create a separate wedding plan (or even more than one to work out different options for your special day). Start by listing every item, from invitations to flowers to your dress. Here’s where to begin.

Well, first up is that they’re not really a holiday, and they’re best kept as short as possible. Let’s call them a “deferral”, since we are essentially just putting off repayments until later, while interest keeps adding up in the background. So even if there are no payments for now, our mortgage is getting more expensive. Here are some alternatives to consider instead.

Yearly – and not just your premiums, but all your insurance settings. This is to check if your current policies need adjusting, especially if life has changed over the year: a new job, a new family member, a change of circumstance. If you have a good insurance adviser, they will set up annual reviews to go over your policies each year, and you can always contact them midway if something substantial changes. Some things never get said about insurance.

Good advice is gold, particularly when your circumstances have changed or you are making big money decisions. In order to not follow random money tips from just anyone, it helps to get professional personalised financial advice. And it doesn't have to cost an arm and a leg. When our money lives get complicated, we could all benefit from great advice, whether it's for budgeting, financial planning, mortgages, insurance or investing. Whichever kind you need, it helps to shop around, meet with a few advisers and find a good fit. Here's our guide to getting advice.

There are many rules-of-thumb budgets out there, like the "50-30-20" rule for needs, wants and savings. But people’s situations are far more varied, so this one doesn’t necessarily work for everyone. Fifty for needs may not be enough, but even 20% on savings may not be either – depending on what you’re aiming to achieve. What's most important is that you make your plan to suit your circumstances. Here's our budgeting tool to start your plan today.

It really depends on what they're for. Especially when you borrow for things that can increase in value, like your education, a business or a home, they can be life changing. But debt is like fire – it’s only beneficial when you keep it under control. Because of fees and interest charges, borrowing can end up costing much more than anticipated, and be incredibly hard to pay off. It needs to bring you wellbeing long after the initial fire has been put out, otherwise it may not be a great idea. Here's more on why debt is like fire.

Taking on debt is risky, since in the future our situation may change and we might find it difficult to repay the loan. So if our circumstances did suddenly change, would it put us in real difficulty? If so, it's too much debt. A lender has ways of protecting themselves when loans go bad, including default fees and interest rates, and even the ability to write it off and sell it. The only defence we borrowers have if something goes wrong is our own reserves. Here's one borrower's story.

Yes, the amount of debt you're carrying, primarily higher-interest borrowings like on credit and store cards, can affect your chances of getting a loan, including a mortgage. One of the most important things that mortgage lenders look at is how much income you have available for loan repayments. If a lot of your income is already committed to other loans, the lender may decide to lend you less, or not at all. Here's more on what you can expect to borrow when you're buying a home.

Loans can be put on pause with something called a “holiday” or a “deferral”, but generally the interest you're charged does not stop for anyone. If you are struggling, the best thing is to immediately contact your lender and talk it through with them. The earlier you do this, the better. You might be surprised how willing they are to make things work for you and your loan. For example they may help you pay only interest for a while, or restructure your loan. For personalised help, contact the MoneyTalks team.

When you borrow money, that comes at a cost – a tiny but mighty percentage of the loan amount called interest. That's how a lender makes money. An interest rate doesn't look like much, but over time it can add up to huge costs. When you're paying interest on a loan, it's important to repay more than the minimum amount if you can, to reduce the loan term and total interest cost. And when you're paying back a number of loans, it can help to target one at a time. Here are some debt strategies.

Since lenders primarily make money from the interest we pay on loans, most debt includes interest charges. That said, when used in the right way, borrowing on credit cards and pay-later options like Afterpay can be interest free, and so a whole lot cheaper. Typically, the most expensive loans are payday loans, then store cards, credit cards, personal loans, car loans and mortgages (in that order). Borrowing may seem doable at first, but we end up paying much more for things than we intended because of interest. Start tackling your debt today.

Your credit score is a number that reflects your borrowing history, and lenders look at our score when they are deciding whether to lend to us or not. Managing our borrowing well can increase our score. Credit reports record any missed payments (defaults) and how long they are overdue. They also can show how much we've borrowed and whether we've made regular repayments or not. Our credit history also shows how often we've applied for loans, and too many enquiries can push our scores down. You can get your credit report for free by requesting it – here's where to find out more.

Aiming to be debt-free? It’s the high-interest debt that hurts most: payday loans, credit cards, store cards, car loans. That’s what we’re after first. When you have a number of loans on the go, there are a couple of strategies that help to take them down. The first is a "debt avalanche", where you list all your debts and target the highest-interest loan first (the most expensive). The second is a "debt snowball", where you work on repaying the smallest loan first. Find out which could work for you.

Yes, you are not stuck with the same set mortgage forever. Refinancing (or "remortgaging") is a normal part of home ownership, and many people do this every few years. Technically it's paying off one mortgage and taking on an entirely new one, either to change the terms of the loan (such as extend it from 20 to 25 years, for example), or to take advantage of a lower interest rate. For more about how to make refinancing work for you, see our new guide.

Lenders make money when borrowers repay their loans regularly. So when we apply for a loan, they look at our ability to repay. They gauge whether we're a good payer by looking at our income and credit score (how well we have repaid other loans in the past). Although lenders have similar standards, they may have different amounts of money available to lend, and may vary which loans we qualify for at a given time. The first step to understand how much you can borrow is to request your credit history to see what lenders are looking at when you apply for a loan. See our credit report guide for more.

When you're deciding how much to borrow for a property, you'll want to see how much repayments will be. There are three main variables with every mortgage: the loan amount, the term (how long it’s for) and the interest rate. These generally determine how much your repayments will be. By plugging them into our mortgage calculator, you can easily see the repayment amounts. Keep in mind that these are the minimum payments; by paying a bit more each time, you could shave tens of thousands off the cost of your loan.

Some types of loans do not require a credit check, but most lenders will use your credit score to help decide whether they will lend to you. Each time we use our credit card, an overdraft, or a pay-later option like Afterpay, Laybuy or Zip, we are borrowing money. Those small loans do not require a credit check each time (although they did when we initially applied for a credit card, for instance). Generally, once we have a line of credit set up, we do not need to apply over and over again. Here's how to get the most out of pay-later options.

You probably don't want a loan from someone who doesn't bother to check who you are! This would be rare, since a lender can't trust that you'll repay the loan if they don't know who you are. If you’re offered a loan without the lender checking your ID, the situation is almost certainly a scam. Here are more considerations before you borrow money.

Wrapping all our debts together and paying them off at once – ideally at a lower interest rate so we get out faster – can be helpful. But it can take longer to be rid of it. The key is to leave borrowing behind! Consolidating debt into a single loan, while it seems like a good idea financially, can lead to more debt. This is because we end up with empty credit card accounts. Unless we change the way we use them, they're too easy to load up again. Here's how to make debt consolidation work for you.

It’s best not to find out. When you can't repay your loans, and your lender gives up trying to get you to repay, they can sell your loan to a debt collector. Then they have a go at harassing you into repaying. This can include phone calls at all hours and knocking on your door. We wouldn't wish it on anyone, but if you do get caught out with a debt collector, it helps to have someone in your corner. The team at MoneyTalks is worth reaching out to for some support.

Yes, although it just seems like lay-by sometimes, doesn't it? When you use pay-later options, you pay part of the cost straight away (and take your item) and the pay-later company pays the rest – so you’re borrowing it from them. Then you pay the company back in instalments – typically three fortnightly repayments. This type of loan, if you make the repayments on time, is interest-free. But costs can add up if you miss a payment. Here's how to use pay-later options.

As long as you stay in the country, your student loan is interest-free. That makes it different from other loans that get more expensive the longer you have them. True, you do have annual fees and need to pay back a certain amount when you start working. But because there is no interest adding up, it's not getting more expensive over time and there's less rush to pay it off. It would certainly be better to finish it off and have more income. But moneywise, you could be better off using any extra money you have elsewhere. Find out more about student loans.

Not necessarily. But your student loan will be taken into account. Because your student loan repayments are 12% of every dollar you earn above $20,020, that obviously affects how much money you have available to repay a mortgage. Having a student loan makes a mortgage less affordable and can affect mortgage applications. Here are other criteria that affect our ability to borrow.

You certainly can, but there may be a cost or a break fee depending on what kind of mortgage you have. It's important to gauge whether it's worth it and the right move for you. Depending on what's happening in the economy, banks typically love it when mortgage holders switch to them (and will at times pay cash incentives to entice you). This can often happen in a refinance, when you pay off one mortgage and set up a new one with new terms. If you've heard about interest rates out there that are lower than yours, here's how to shop around for a new mortgage.

For a lender they are an asset (they bring money in), but for most of us borrowers they are a liability, which just means they take money out of our pockets over time. You can get ahead financially by taking out loans (for your education, starting a business, or buying a property), but generally debt is a drag – it slows us down moneywise. Basically what we are doing is spending our future money ahead of time by borrowing. And if our borrowing is for things that do not increase in value, or even lose value in time, they are a certain liability.

If you fall behind on repaying your loan, your late payments will be recorded against your credit score (which affects your ability to borrow more someday). If you can't repay your loan at all, and your lender gives up trying to get you to repay, they can sell your loan to a debt collector. Then they have a go at harassing you into repaying. We wouldn't wish it on anyone, but if you do get caught out, it helps to have someone in your corner. The team at MoneyTalks is worth reaching out to for support.

What can help most is a budget, a buffer and a strategy. A budget is really just a plan for your spending – it’s a big help when you’re directing your money towards a goal like being debt-free. But even before you tackle your debt, it helps to save a safety net of $1,000 first. That way you’re ready for the unexpected. Without a safety net, if something happens, you’d just have to run your debt up all over again. Finally, there are good strategies for tackling debt: find out which will work best for you.

When you can’t make repayments, the best thing to do is talk to your lender as soon as possible to make arrangements. You might be surprised how willing they are to make things work with you and your loan. The quicker you get in touch, the better placed they are to help you deal with financial stress. After all, they deal with this sort of thing all the time. We also highly recommend you contact MoneyTalks, which runs a free helpline – you can easily chat online, call 0800 345 123 or text 4029 to find your way forward.

If you have a bunch of loans on the go, focus on tackling one at a time. Pay more towards your highest-interest debt – the one that costs the most – and make minimum repayments on the rest. That’s the cheapest and quickest way out. But if you need a little extra momentum and motivation, pay off the smallest debt first for a satisfying quick win. When the first is done, funnel your extra money towards the next on your list. Rinse and repeat. Find out which strategy works for you.

Using a personal loan to wrap all your debts together so you can pay them off at once – ideally at a lower interest rate so you get out faster – can be helpful. But it can take longer to be rid of it. The key is to leave borrowing behind. Consolidating debt into a single loan, while it seems like a good idea financially, can lead to more debt. This is because we end up with empty credit card accounts. Unless we change the way we use them, they're too easy to load up again. Here's how to make debt consolidation work for you.

Our credit score reflects our borrowing history, and lenders look at our score when they are deciding whether to lend to us or not. Managing our borrowing well can increase our score. Credit reports record any missed payments (defaults) and how long they are overdue. They can also show how much we've borrowed and whether we've made regular repayments or not. Our credit history shows how often we've applied for loans, and too many enquiries can push our scores down. You can get your credit report for free by requesting it – here's where to find out more.

When you’re deciding how quickly to pay off your student loan, remember that as long as you stay in the country, it’s interest-free. That makes it different from other loans that get more expensive the longer you have them. True, you do have annual fees and need to pay back a certain amount when you start working. But because there is no interest adding up, it's not getting more expensive over time and there's less rush to pay it off. It would certainly be better to finish it off and have more income. But moneywise, you could be better off using any extra money you have elsewhere. Find out more about student loans.

Probably not, unfortunately. Rewards programmes are designed to keep you putting things on plastic, and they rarely give you back any more than two cents for every dollar you spend. The majority of credit card users would benefit most by shopping around for the lowest-interest, no annual fee credit card and sticking with that. Here are our top tips for managing credit cards.

Every different type of loan is designed for a specific purpose, so it’s important to know that business loans are for just that and not for paying down any existing debt. If you are interested in starting up your own business, loans can be the lifeblood of your new endeavour. There’s lot’s to consider, so here’s where to begin when you’re starting up a new venture.

Try not to worry – KiwiSaver balances go up and down normally. So no one took your money. It can feel unnerving, but it's helpful to understand what's really happening with your account. In KiwiSaver your money buys investments like shares and bonds that go up and down in value, sometimes radically. Those sudden falls in value cause your balance to go down in the short term, even if you still own the same number of investments. It's all part of growing your money, and here's an estimate of how much yours can grow to in time.

KiwiSaver is designed for two things: buying a first home and growing a nest egg for retirement. If times get tough, you can withdraw to keep food on the table. But typically it's not for repaying debt like credit cards, fines or infringement notices, debt collection agency bills, hire purchase debt for non-essential living expenses, holidays, or even travel to visit a sick relative. Here's how a hardship withdrawal works.

Even though it's primarily designed for employees, independent earners can still get a fair bit out of KiwiSaver. It would be great if KiwiSaver worked a bit better for those of us who are self-employed. That said, independent earners can still get the government's contribution and returns from money being invested in KiwiSaver. Here are some helpful considerations when you're self-employed.

Did you know there are “defensive” KiwiSaver funds? They’re having a bit of a moment, as people discover them for the first time. They mostly hold cash and bonds, and out of all the five types of KiwiSaver funds, they protect you most from sudden drops in your balance. You won’t get the potential growth that you would in other types, but if you’re going to use your KiwiSaver money soon, especially within the next 1–3 years, they can be helpful. Here are all the defensive funds in KiwiSaver.

When you put money into KiwiSaver, it is joined by three more flows of money: from your employer, from the government and from the market (where that money is invested). This makes it so much more powerful than just regular saving. You don't have to be working to be in KiwiSaver, although you do need to be living in New Zealand and be eligible to live here indefinitely. Here's how to get the most out of KiwiSaver.

With KiwiSaver, your savings flow into a professionally managed fund and are used to buy units of investments such as shares, bonds or commercial property. The mix of different types of investments depends on the type of fund you’re in. There are five types of funds: aggressive, growth, balanced, conservative, or defensive, depending on the proportion of risky investments like shares each holds. You can learn more about types of funds here.

Everyone needs to choose which fund to be in, so which is the best fund for you? It's important to pick your fund based on important criteria (not just because it's a familiar brand or something). If you didn’t actively choose a fund when you started in KiwiSaver, the government did this for you by putting you into one of nine “default” funds. This was to get you started, until you got around to making a choice yourself. But how do you pick one? First up is to find which type of fund is right for you.

No, it’s easy – about the same as switching your mobile or power provider, actually. You let your new company know you want to move to them, and they do all the work behind the scenes. There are two ways of switching with KiwiSaver: staying with your provider but moving to one of their other funds, or moving to a new provider. There are good reasons to switch, such as when you're getting closer to the time you plan to start spending your KiwiSaver money on a first home or in retirement. But there are also bad reasons to switch, such as because you heard about some other fund doing better than yours. Here's why.

When you take out your KiwiSaver money, either for a first home, financial hardship, or to use to live on in retirement, that money is tax-free. Your KiwiSaver contributions are made after your income has been taxed, and the gains from your investments that you own in KiwiSaver are taxed as well. So that means when you withdraw for a first home or retirement, there is no more tax to pay on it. It's your money to use. To withdraw your KiwiSaver money, contact your provider directly.

Anyone can put in as much as they want to KiwiSaver at any time. (Fair to say that the KiwiSaver providers would be happy if you put in more!) Employees have some preset levels to choose from though: 3%, 4%, 6%, 8% or 10%. You simply let your payroll or HR person know. How much of a difference will changing your percentage make? Have a look.

If you go on parental leave or are out of work, for example, KiwiSaver keeps growing behind the scenes. And you can still receive the government contribution of $521 each year. Even if you are not working, KiwiSaver can still work for you. For those on parental leave, some employers even continue their contributions. But for everyone, the government's match of 50 cents for every dollar put in still applies (up to $521), so it's important to put in at least $1,043 to get the full amount each year. Here's more on how KiwiSaver works.

Your KiwiSaver money is much like everything else you own – when you die it becomes part of your estate and follows the instructions you leave in your will. It's important to have a will drawn up just in case. Without a will, your assets do not automatically go to your partner if you die, and the government uses a formula to divide them up. To make sure your wishes are followed, particularly with your KiwiSaver, here's more about wills.

Yes, along with growing a nest egg for retirement, buying a first home is one of the goals that KiwiSaver is made for. Part of the purpose of KiwiSaver is to help us grow assets, and one way is by using it for a first-home withdrawal when you've built up some money in it. The second way is through a KiwiSaver First Home Grant, which could give you as much as $10,000 more for a home. Find out more here.

Your money's no longer locked away. At 65 you become eligible to withdraw your KiwiSaver money, which you do by making arrangements with your KiwiSaver provider. If you continue working after you turn 65, you can choose to stop contributing into KiwiSaver, or keep investing even more money. Depending on your contract, employer contributions may stop. The government's top-up of $521 will also stop at 65, as you become eligible for NZ Super. Where will you be in KiwiSaver at 65?

You want this to be a last resort, since you’ll never be able to recover the market returns you’ll lose. But if you are in significant hardship and need to withdraw to keep food on the table, you can apply directly to your KiwiSaver provider. Many of us have been doing it tough through lockdown, so it's good to know that there is the possibility of a hardship withdrawal from KiwiSaver. But it can't be used for repaying debt or fines, for instance, and you want to make sure you're tapping all your other options first. Here's more if you're thinking of applying.

Based on what type of fund you're in, the amount you're contributing, and the years to go until retirement, we can project what your balance will be. If you take a moment to plug in some numbers into our KiwiSaver savings calculator, you can see what you're on track to achieve. Depending on your settings, you may or may not be impressed. But you can alter your future by changing either your fund type or how much you're contributing. See what difference it will make.

No, the government wants us saving for the future so we're more self-sufficient and not relying so much on NZ Super. The government set up KiwiSaver and makes sure it runs smoothly through Inland Revenue, but your money is held by private KiwiSaver companies (like banks). No one else can touch your individual KiwiSaver account – it’s in your name and it’s your money. Here are more KiwiSaver essentials.

There are three prescribed investor rates (PIR) in KiwiSaver: 10.5%, 17.5% and 28%. Make sure your rate is correct so you're not paying more tax than you need to. If your income is sometimes or always less than $48,000 each year, you may be paying too much tax in KiwiSaver. It's simple to correct this – just contact your KiwiSaver provider directly and let them know. Here's more on how KiwiSaver works.

KiwiSaver is administered by Inland Revenue, which helps make sure it works properly, and overseen by the Financial Markets Authority, which makes sure KiwiSaver companies follow the rules and do right by you. It's important to remember that KiwiSaver providers are private companies. Here are more KiwiSaver facts.

Let's work backwards from your goals: if you're saving for a home and/or retirement, how much would you like to have and how soon? Those questions can drive your choices. And if you take a moment to put in your information into our KiwiSaver savings calculator, you can get an idea of what you're on track to achieve. Underwhelmed a bit? Try adjusting your contribution rate to see how much difference it makes.

Great question! Generally you want to be contributing enough to get all the KiwiSaver benefits like the employer and government contributions. Above that, it usually pays to funnel everything you can towards your mortgage. Whenever you pay off debt, you are saving yourself the interest you would have paid. On a mortgage, think of it as a sure return to you of whatever your mortgage rate is – and that will nearly always be higher than you would earn on investments. See how much mortgage interest you could save.

It’s important to know that many KiwiSaver funds – perhaps most – hold a portion of shares. So you can invest in shares through KiwiSaver or directly via an investing platform like Sharesies, or even do both (you definitely want to be in KiwiSaver to take advantage of the government and employer money). When thinking about shares, consider what your eventual plan is for the money you’re investing. How many and what types of shares would make sense for you and your goals? Here’s more for when you’re having a go with shares.