6 steps to get your money Sorted

Sorting out your finances might seem like an overwhelming task, but you can make a start with these 6 steps:

1.     Set your goals

Identify short-term, medium-term and long-term goals, such as saving for a down payment on a house, funding your children's education, or starting a business. Break down these goals into actionable steps and track your progress regularly. Celebrate milestones along the way to stay motivated.

2.     Get your KiwiSaver account on track

Ensure you're enrolled in KiwiSaver and contribute regularly. Take advantage of employer contributions and consider increasing your own contributions to maximise the benefits. Review your investment options periodically to ensure they align with your long-term goals.

3.     Tackle your debt

Start by creating a comprehensive list of all your debts, including credit cards, personal loans and student loans. Prioritise paying off high-interest debts first while making minimum payments on others. Consider consolidating your debts and develop a budget that allows for debt repayment while still meeting your essential expenses.

4.     Start an emergency fund

Life is full of unexpected events, such as medical emergencies, car repairs, or a sudden job loss. Having a dedicated fund to cover these unforeseen expenses can provide peace of mind and prevent you from relying on credit cards or loans.

5.     Work out your retirement number

Determine your retirement goals and estimate the amount of money you'll need to maintain your desired lifestyle. Consider factors such as inflation, healthcare costs and potential sources of retirement income. Speak with a financial adviser to develop a personalised retirement plan and explore investment options that align with your goals.

6.     Cover your people, money and things

Evaluate your insurance coverage, including life, health, disability and home insurance. Ensure your policies adequately protect your assets and provide financial security in case of emergencies. Review your coverage periodically to account for any changes in your circumstances.

_{This information is general in nature and may not suit your personal circumstances. Please seek advice before making important financial decisions.}