‘Watch the small expenses’: 20 expert tips to boost your bank balance

We’ve all done it: come home with an extravagant impulse buy or signed up for a holiday without knowing what it’s going to cost. And then there are those cafe visits and flat whites.

Don’t beat yourself up over the coffees and the smashed-avocado-on-toast brunches, says Retirement Commission personal finance expert Tom Hartmann. The important thing is to have a plan and ideally a goal to save towards.

Claudette Wilson, general manager of North Harbour Budgeting Services, agrees.

“Write down what the goal is, put it in front of you and actually work to it. It doesn’t matter what it is.”

Track your money, she says. Every cent counts, every dollar helps.

Benjamin Franklin would concur. His face is on the US$S100 bill to honour his contribution as a Founding Father. But he was also money-wise.

“Watch the small expenses; a small leak will sink a great ship,” he was quoted as saying.

Collectively, Kiwis currently owe billions of dollars. Consumer and personal debt currently sits at $24 billion, and a further $7.1b is owed on credit cards. That’s on top of a residential mortgage debt of $348b.

Hartmann says it’s little wonder that Kiwis, faced with constant marketing from companies selling goods and services, find their money evaporating. Think about walking through a supermarket, he says.

“[It’s] just wall-to-wall advertisements coming at us, ‘buy me, buy me, buy me’”.

Budget and have a goal

There’s budgeting, and then there’s budgeting, finance experts say. One model will make ends meet and keep the status quo. But why not aim higher?

Pick a goal to save for something important to you; it could be a trip away or a newer car. That way you’re more likely to be careful about what you spend, budget advisers say. And put some aside for those unexpected expenses that can plunge you into debt.

Help is available, says Hartmann, personal finance lead for the commission’s financial literacy platform Sorted, a free service offering a range of calculators and tools. Importantly, it has an easy-to-use online budgeting planner.

A little bit of money

Many of Wilson’s clients think they know where their money is going but can’t understand why they run out. It’s often the small purchases they’ve forgotten about that add up, she says, like stopping for $40 worth of petrol but buying a coffee and snacks at the same time. Or they’ve been buying extras on a gaming site, or adding Lotto tickets to a grocery shop.

Be honest, add those up over a week or a month. Think how the cost of those little extras would accumulate if you put that money into a savings account.

Do you really need it?

It’s that time of year again. Black Friday sales are looming next month. Oh, the bargains, the queues, the fight to get the last discounted air fryer. Make a list of what you need and stick to it. If you don’t need anything, stay away. Make a Christmas cake instead; it’ll be cheaper than buying one.

Shopping sprees without self-discipline can do serious damage to your finances. If you’re tempted, put the item on hold for an hour or two, or, even better, sleep on it. Ask yourself, do I really need this or do I just want it?

Beware of going into debt over an impulsive RSVP. Before accepting an invitation to an out-of-town or overseas wedding, add up the cost of travel, accommodation, food, the wedding gift, and a new outfit. Make sure you can afford it before responding.

And think twice – make that three times – about going into debt to buy that new Ford Ranger – which will drop in value the moment you drive away – when a debt-free, secondhand Toyota will do the job just fine.

The art of hustling

Hustling or asking for a discount is not something that the average Kiwi has grown up doing. And yet, say budget advisers, it can save hundreds of dollars over the space of a year, particularly when buying pricey items like whiteware, furniture and beds.

Shop around, ask for a discount or make an offer. Being a bit cheeky doesn’t cost anything, and in this economic climate, salespeople, often on a part-commission payment, will want to clinch the deal. With a bit of luck, you might get free delivery.

If you’re doing house renovations, get two or three quotes then ask your preferred tradie or supplier to match the lower quote.

Make your house earn its keep

If money gets tight, consider renting a spare room to a flatmate, taking in a boarder or a homestay student to bring in a few hundred dollars a week extra.

Fees for homestay students can start at $340, depending on the area (Auckland is usually more expensive), rising to $600 for a more deluxe package including a private bathroom for the student. Host families need to provide meals, transport and include students in family activities.

One student homestay host says that in past years she’s had two, and sometimes three, teenage students staying at any one time.

“I loved it”, she says. “I wasn’t doing it for the money, but I can tell you I saved a load of money because there’s no way you spend that money [the homestay fee] on their costs.”

Turning Gold into dollars

Kiwis aged 65 and over can save plenty of money by tapping into thousands of discount offers on the Government’s supergold.govt.nz website. There are dollars to be saved at food outlets, homeware stores, power and telco companies, healthcare, dentistry, and rental car companies, as well as discounts at museums, movie theatres and performances. Many supermarkets offer SuperGold cardholders a 5% discount on a particular weekday.

Often the discounts aren’t widely advertised, so always ask about a Gold Card discount before paying. However, it pays to check that the same item is not offered at a better price elsewhere, even with the discount.

Make the most of free travel on buses, trains and ferries during off-peak hours. Entry to Auckland’s Museum of Transport and Technology is free, and so is the Wellington cable car during off-peak hours (half price during peak hours). And once you hit 75, you can ski for free at Coronet Peak, the Remarkables or Mt Hutt.

Utilities and phone cents

Shop around and review utilities at least once a year. The Electricity Authority’s site billy.govt.nz is useful for comparing power company charges. Ask your existing power provider to match the better deal.

Regularly check that you’re on the best deal for your phone and data usage.

Wilson: “We see a lot of people who are on really big plans [for mobile phones], and when you look at their usage for the year, it’s actually a small percentage of what they’re actually paying for.”

And think twice before buying the latest mobile phone “on tick” or through deals offered by telcos when there’s nothing wrong with the existing phone.

Do your homework about roaming plans when you’re travelling overseas, otherwise you could find you’ve racked up hundreds of dollars in charges when you return.

Mortgage matters

Shop around and negotiate for the best rate, particularly if you’re a new customer, says Compass Mortgages adviser Helen Stuart.

A mortgage isn’t a set-and-forget, she says. Check regularly to make sure you’re not paying over the odds. And if you have savings, use them to pay off the mortgage more quickly to reduce the interest you’ll pay in the long run. Even if the interest rate drops, keep up the payments at the higher rate.

In the current uncertain job market, Stuart recommends income insurance, particularly for people with a large debt.

Beware of the Big D

Debt can creep up without warning – the mortgage repayments, the credit cards, the loan on the car.

And then there’s the lure of Buy Now, Pay Later (BNPL), also known as Afterpay, now used by around 23% of Kiwis, according to the Financial Markets Authority’s 2025 report Good Cents: Kiwis on Savings and Debt.

Financial advisers say BNPL can work well if customers meet their regular payments, but if they miss a payment, fees start accumulating. And they warn that BNPL in the hands of an impulse buyer can be dangerous.

One financial adviser spoken to by the Herald thinks BNPL should be avoided unless there is no alternative and the item needs to be bought.

“Things like mag wheels, beauty treatments, concert tickets, designer sneakers, holidays, and so on are not essentials that should be bought this way,” she says.

People end up with 10 different BNPLs at the same time; they default, and then fees start accumulating.

“It’s a very profitable business that has just taken over New Zealand.”

Likewise, be cautious with debt consolidation offers because of the fees involved, she says. Go to your bank first to ask for options, and get advice from a budgeting service.

Pay off credit card balances on time to avoid late fees and interest that can be as high as 25%. Store card interest rates can go up to 30%.

Swap dollars for power and water

Encourage family members to switch off non-essential lights and turn off electrical equipment at the wall if it draws a current.

Wash clothes in cold water and hang them on a drying rack or line rather than use the dryer. Use timers on heated towel rails and panel heaters. Avoid baths, take shorter showers to save on both power and water.

Borrow or rent

Before you rush out to buy a new tent, pram or power tool, think about borrowing from friends or renting the item. Join a toy library rather than buying new toys that will pile up in the playroom.

Library members can borrow books, including ebooks and audiobooks, CDs, DVDs, movies and board games. Some libraries will lend sewing machines, camping gear, DIY tools, gardening equipment and kitchen appliances. And if you can’t borrow it, buy second-hand. There are dollars to be saved.

A bit on the side

Can you join the gig economy and think of a side hustle? Tutoring students, telemarketing in the evenings, a small online business, gardening at weekends, modelling for an ad, or babysitting? Put that money aside, investit, don’t spend.

If you’ve got a family bach or holiday home, consider renting it out during the peak holiday season and popular long weekends.

Are you over-insured?

John Chandler, chief commercial and client officer for PIC Insurance Brokers, has three main pieces of advice: check you haven’t signed up for a premium insurance product that you don’t need; make sure you are not over-insured (check current valuations); and consider increasing your excess to save premium costs.

“That’s one of the easiest levers to pull for reducing costs, he says.

However, Chandler also warns Kiwis to check they’re not under-insured. It can be “devastating” if a house suffers major damage and the insurance doesn’t cover the cost, he says.

Use online sites to check what it would cost to rebuild your home.

Car costs

Second-hand cars can devalue rapidly, so check you’re not paying too much for insurance.

If your ageing “shopping basket” car dips in value, consider changing to third-party, fire and theft cover, Chandler advises. Premiums will be much cheaper, but check to see if there’s cover if an uninsured driver damages your car.

Wilson warns that costs like warrant of fitness (WoF), registration, and servicing or repairs can put people in debt unless they’ve saved for them. Build a buffer, she says.

And then there are the hefty fines for an expired registration ($200) or WoF ($200), which will rise to $350 from November 1 for a WoF that has expired for more than two months.

Repeated speeding and parking fines are one of the quickest ways to get into debt.

Healthy choice

Health insurance premiums keep rising, particularly as we age. Consider cutting back from a premium policy to one restricted to surgical, specialist and cancer cover.

Raising your excess to several hundred dollars, or even several thousand, will reduce your premiums.

Shop around if you’ve been on the same plan for years but be careful before you change companies. Your new insurer is unlikely to cover your pre-existing medical conditions.

A qualified health insurance adviser can help present all the options and costs, usually without charging, Chandler says. But check that the adviser is working across all the health insurance companies, not just one.

Sites like MoneyHub and Consumer NZ are also helpful.

Cashing up clutter

Kiwis are sitting on an estimated 76 million unwanted items, collectively worth $5.2 billion, according to Trade Me’s 2026 Aotearoa Circular Economy Report.

Have a look at home to see what might be worth selling: that signed rugby jersey, some Pokemon cards; a near-new power tool; clothes or baby gear. Consider cashing up any unwanted gold or silver jewellery, or coins, particularly if prices are buoyant.

Keep an eye on what’s trending so you sell at the right time. Searches for “Warriors jersey” on Trade Me are up 45% this year, for example.

Spend your time, not your money

In an age where Kiwis can pay to have just about anything done for them, try dialling that back. Dye or highlight your own hair in between salon appointments; trim your kids’ fringes (any mistakes will just become family folklore); make your own lunch; paint your own nails; wash your own car; if you have a cleaner, cut them down to once a fortnight. You’ll be surprised how much money is saved by DIY.

Supermarket savvy

You know the drill: stick to your list; don’t shop when you’re hungry; only buy what you need so you’re not wasting excess food; keep an eye out for specials but ask yourself if you really need five cans of tomatoes for $10.

Don’t be tempted to shop at a more expensive supermarket just to collect coupons for something you don’t really need.

One budget adviser with a large extended family says they plan meals a week ahead, order only what they need and pick it up as a click-and-collect so they won’t be tempted to go inside and stray from their list.

Watch your APs and apps

Make sure there’s enough money in your account to cover your automatic payments (APs) and direct debits, otherwise banks may charge penalty fees.

And do you really need to be paying for all those apps that seemed a good idea at the time? Likewise, rethink your TV streaming services or subscriptions you no longer use. Add up what they cost each month, and then for the year.

Westpac data shows 10% of its customers are shelling out $80 a month for TV subscriptions, while a further 7% are spending at least $100 a month.

Invest wisely

Think about what you’re going to do with all those dollars you save. Keep some ready cash aside but don’t just leave the rest in a low-interest account. Spread your investments. A financial adviser can help you manage your money.

Jane Phare is a senior journalist based in Auckland. Her roles at the Herald have included assistant editor of NZ Herald, editor of the Weekend Herald, founding editor of Viva, features editor and deputy print editor.