How to Save Money in NZ

Best savings accounts

Finding the right savings account for you can keep your hard earned money safe and even earn you more, through interest. The table below displays some of the regular saver accounts on our database (some may have links to lenders’ websites).

This table is sorted by total interest (including bonus) (highest to lowest), followed by company name (alphabetical). Products shown are for savings of $10,000. Before committing to a particular savings account product, check upfront with your financial institution and read the applicable documentation to confirm whether the terms of the account meet your needs. Use Canstar’s savings account selector to view a wider range of savings account products. Canstar may earn a fee for referrals.

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1. Create a budget

Writing a budget is an essential first step to begin managing your finances effectively. A budget helps you understand where your money is coming from and where it’s going. It provides a clear overview of your income, expenses, and spending habits, enabling you to make informed financial decisions.

Writing and following a budget encourages financial discipline and responsible money management habits. It helps you become more mindful of your spending choices and develop healthier financial behaviors over time.

To write a budget, list all your sources of income and track your expenses meticulously to identify areas where you can cut back. Check out our budgeting guide below for step-by-step instructions on writing a budget.

→Related article: How to Write a Budget

2. Set savings goals

Determine your short-term and long-term financial goals. These could include building an emergency fund, paying off debts, saving for a vacation, or investing for retirement. Here’s how to set and achieve your savings goals:

1. Define clear objectives, whether it’s for emergencies, travel, or retirement
2. Make goals specific, detailing the amount needed and the timeframe for achieving them
3. Prioritise goals based on importance and urgency
4. Break down total costs into manageable milestones
5. Adjust savings strategies based on time horizon and risk tolerance
6. Align your savings goals and budget
7. Automate savings to ensure consistency
8. Monitor progress regularly and make adjustments as needed
9. Celebrate milestones to stay motivated
10. Remain flexible in adapting goals and strategies to changing circumstances

3. Track and cut expenses

Review your expenses regularly and identify items you can live without. This could include eating out less, reducing subscription services, or finding cheaper alternatives for certain products or services.

Look for free or low-cost activities for entertainment and recreation. This could include hiking, picnics, visiting museums on free days, or attending community events.

Before making a purchase, especially for expensive items, take some time to think it over. Avoid impulse buying and ask yourself if you really need the item. Buying second-hand items, such as furniture, clothing, or electronics, can save you a significant amount of money compared to buying new.

If possible, use public transportation instead of owning a car. This can save you money on fuel, maintenance, insurance, and parking.

Try using apps or budgeting tools to easily track your spending. This helps you identify where your money is going and where you can make adjustments to save more.

Related article: Best Budgeting Apps

4. Save on utilities

Be mindful of your electricity, water, and gas usage. Turn off lights and appliances when not in use, take shorter showers, and consider investing in energy-efficient appliances to reduce your utility bills.

Many providers offer discounts when you sign up for multiple utilities. Generally, the more utilities you add, the more you save. If you get overwhelmed with multiple payments and companies to deal with, bundled utilities could be right for you. It will make staying on top of your usage, and payments, much more manageable.

But, it does still pay to shop around. While you may receive a discount when combining multiple utilities with one provider, there could still be cheaper options.

Compare bundled utilities Canstar Blue!

→Related article: Three Reasons Your Money is Disappearing

5. Invest wisely

If you have extra money, consider investing it wisely to generate passive income and grow your wealth over time. Research different investment options and consider seeking advice from financial experts if needed.

The first step is to decide how you will invest your money. There are a number of micro-investing platforms that can help you start investing with smaller sums. Some of the providers in New Zealand include ASB Securities, Sharesies and Hatch. They all work differently so it’s best to compare the options to decide which one is right for you.

→Related article: Why You Should Treat Investing Like a Subscription

6. Increase your income

Boosting your income can help you put extra money aside, especially when you have a lot of expenses. Renting out a room in your home or picking up a part-time job can help increase your income.

With the rise of remote work, consider exploring job opportunities that allow you to work from anywhere. Remote work can offer flexibility and access to a wider range of job opportunities that may pay higher salaries.

Increasing your income often requires time, effort, and persistence. It’s important to set realistic goals, stay focused, and continuously seek ways to enhance your skills and expand your earning potential.

→Related article: 25 Side Hustles to Help You Make Money

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About the author of this page

This report was written by Canstar Content Producer, Caitlin Bingham. Caitlin is an experienced writer whose passion for creativity led her to study communication and journalism. She began her career freelancing as a content writer, before joining the Canstar team.