Starting your first job? Let’s get your finances sorted

The money’s coming in and you’re probably dying to spend it. From that new jacket to the latest smartphone, it’s all fighting for your attention. But overspending can really set you back financially, and it’s an easy mistake to make when money’s not top of mind.

So start thinking about money more – and get knowledgeable on saving, investing and managing your money with helpful websites like sorted.org.nz. And whenever you’ve got the urge to splurge, ask yourself:

• Do I really need this (honestly)?
• How many hours’ work does the cost of this item equate to?
• Is there something more important I can put my money into – like debt or savings?

By getting money-savvy early on, you’re setting yourself up for a bright financial future.

Now that you know where your finances are at, any surplus you have should ideally go towards paying back your debts first, like your credit card or car loan.

Follow these steps to pay off your debts faster:

• Decide how much you can afford to pay off regularly.
• Set up an automatic payment just after pay day to make regular payments towards your debt.
  
• If you suddenly receive a bonus or a lump sum of money, think about putting that towards your debt too.

The faster you pay off your debts, the faster you can start saving for your future.

KiwiSaver is a voluntary, work-based savings initiative designed to help you save for your retirement.

If you join KiwiSaver, you can choose to contribute 3%, 4%, 6%, 8% or 10% of your before-tax pay into your KiwiSaver account every pay-day. You can choose the KiwiSaver scheme your savings are invested with.

Benefits of joining KiwiSaver

• Generally your employer will contribute at least 3% of your before-tax pay towards your KiwiSaver savings, on top of your own contributions.
• The government will also contribute up to $521.43 to your KiwiSaver account each year, provided that you are eligible. This is called an annual Government contribution (also known as a member tax credit).
  
• After three years of KiwiSaver membership, you may be able to withdraw most of your KiwiSaver savings to put towards your first home purchase.
• You may also be able to get financial help from the Government towards your first home purchase if you meet criteria including income and house price caps.

Once you’ve got your banking sorted, here’s how you can make budgeting easier by setting up your banking electronically:

1. Open separate bank accounts for different purposes

This keeps your money tidy, hides some away for necessities, and reduces the temptation to spend.

For example, you could split your banking like this:

• Bank account 1: For your everyday spending, like food and drink.
• Bank account 2: For your rent, flat expenses and other regular costs like your phone and the gym.
• Bank account 3: A savings account to save for a goal or store your tax (if you have to pay tax yourself).

2. Set up automatic payments to these accounts

Automatic payments are a great way to pay a fixed amount regularly from one bank account to another (yours or someone else’s). Set up automatic payments so whenever you get paid, a fixed amount is automatically transferred from your main account to your other accounts. Easy!

3. Set up text or email alerts

Overspending happens fast, so keep track of your money with real-time notifications sent direct to your mobile or inbox.

Your notifications will let you know when your funds low, or when your bank account is overdrawn. Set them up how you want.

4. Set up quick balances in your mobile app

You could also check your bank balance fast, without having to log in, using the Quick Balance feature in your ASB Mobile app. Here’s how to set it up:

1. Log in to your ASB Mobile app.
2. Tap on the menu icon at the top left of your screen.
3. Tap on ‘Settings’, then ‘General’.
4. Tap on ‘Quick balance’, choose the accounts you’d like view fast, then toggle on.

Then whenever you need to check your balance, simply open your ASB Mobile app and swipe down.