Make the most of what you've got - Make it, Save it, Spend it!
Should you live for today or for tomorrow? Take a holiday on a Pacific Island or pay off the car loan? What is the right balance?
There is no absolute right or wrong answer. What is right for you depends on what your priorities are.
In terms of priorities, the following suggestions should be considered
- Join a subsidised superannuation scheme, e.g. KiwiSaver, which provides significant benefits, particularly over the long term.
- Pay off high cost/short term debt.
- Create an emergency cash fund.
- Pay off your home mortgage asap – as this is paid from after-tax income.
- Establish long term savings plans.
