I have a confession to make – I am terrible at saving. People may be surprised when I say that. I have heard “Yasmin is a good saver.” I wish… deep down I am a terrible saver. I mean I do put a small amount in my Kiwi Saver retirement savings each week. I have no debt. I love shopping and going to cafes when younger. I wish I had learned to save properly when younger. I am not a bad person but I tend to be a spender and want to have new things or items. I have a problem some say is it linked to depression, is it linked to grief as my Mum passed away in January 2016. Well it could be if when looking at the bigger picture of my life. I have always saved for holidays, budgeted as best as I could. I was spending a lot on beauty therapy and massage therapy which my kind and patient Doctor said you do not need that just take panadol and your pain symptoms will go away and headaches – amazing. My Doctor also educated me about prescription costs which were really affordable thankfully in my situation. I had tried everything to relieve stress, migraines, alternative therapies, you name it. I was not sleeping well either. Then someone suggested perhaps it’s a mindset. I was good at budgeting as a student as I did not have much money to begin with. Also try drinking more water that saves money from going to cafes – great idea I thought. Buy second hand clothing that saves money. I did that and bought a lovely checked long sleeve shirt made in Italy for $6.00 NZ. I buy on sales and my birthday once a year as I get a store discount from all the major brands. Shop at the supermarket and stick to your written list. I did that and it worked! I actually saved with shopping with a support person cut my food budget down to twenty four NZ dollars and my toiletries which I tend to splurge on down to sixty two NZ dollars which included affordable skin care, make up, girl stuff etc. I also go to a budgeting advisor who helps me keep on track. I am so grateful to be learning how to save properly. I also grew up as a child in 1980s and 1990s with second hand clothing for school and I always saved for Glassons and Rebel Sports to wear on the weekends.
I also liked the 80/20 rule of savings. So for every dollar you earn put twenty cents aside in savings. Or for every ten dollars you earn put two dollars aside. Or for every hundred dollars you earn put twenty dollars aside. I tried that and it worked! That is so much easier I exclaimed to my friend. I also learned online you can do 90/10 rule if that is easier so for every dollar you earn put ten cents in savings. Great I thought. Or as I prefer for every one hundred dollars put ten dollars aside into savings. Now obviously nearly everyone has rent or a mortgage of some sort of board to pay even if they are living at home with Mum and Dad and utilities such as power, phone / internet, subscriptions, clothing/ shoes, food and drink, toiletries to budget for and not to mention other things like entertainment or education such as text books, laptop / computer for learning, stationary or if you have children school fees, school uniform, pocket money etc. The main thing is to make a list. I like the old fashioned way of writing on maths paper the tiny square in blue, list down all your income and expenses and what you can afford to put away in savings. Next keep a small note book for a week, my budgeting coach she gave me one just a small exercise note book cost less than a dollar, write down everything that you spend on. I did that and it worked! I was spending $5.00 NZ dollars at a cafe for an Earl Grey Tea when I could buy four bottles of Kiwi Blue water 1.5 Litres for 0.85 cents each NZ. I could buy my favourite Twinnings Earl Grey tea a whole box for about $5.00 NZ dollars. I would often buy sushi which was about $6.00 NZ dollars for six small rolls and with my support person learned to make healthy sandwiches instead and a loaf of value range bread was $1.19 NZ dollars. I started to make my own salads just as good as the cafe and made my own butter chicken and rice for dinner and making pasta dishes for dinner as well I follow Jamie Oliver series on cooking. I also learning to save by making everything from scratch and I now really enjoy it. Salvation Army ran a free cooking course for beginners and I found it fun. I also loved going to Subway each day, that was adding up so I am going to make my own version at home. I also founded it tasted better when you made your own lunches each day and also getting that essential five plus a day with fresh fruit and yogurt added to it. At home for dessert I just have one scoop of ice cream and some tinned fruit or make my own trifle at Christmas time. I love cheese cake and apple crumble and I found a great range in the supermarket frozen desserts for a reasonable price and would last compared to a restaurant where they could charge you from ten dollars up to twenty dollars for a dessert. I also love home made burgers and brunch at home. I am eating healthier, I am not worried about over spending, it’s just like a diet.
With my wardrobe learning to have a capsule wardrobe of ten items like a stylist online. I also do the same with sports gear have the same addidas hoodies sweat shirt style in the same size and always buy two together on sale. I also buy one new pair of addidas sports shoes a year as I go walking each day and running around the supermarket and more comfortable for driving my sports hatch. I also learning the art form of Japanese Minimalism with the art of buying one item at a time. This is a lot harder to do actually you really have to discipline yourself. They curate their wardrobe you must love what you wear and often it is the same style such as plain black t-shirts or plain white t-shirts, one sports hat, one wool beanie, one or two wool scarves, winter coats, denim or leggings and shoes. I would often sell my coats and jackets if I no longer fitted into them to a second hand boutique store with second hand items that are in good condition. I find ordering clothing online from major brands actually curbs my urge to spend too much instore, I only buy one or two items at a time. Also, ask if you can borrow an item say for school camp or outdoors or even a device or a book or fashion magazine to read, you would be surprised how many people offer to donate or let you borrow an item for free and always return it with thanks. The same goes with kitchen stuff, I tend to buy second hand as they have good quality glass ware and bowls for baking and cutlery and plates. On a special day such as a birthday I tend to buy a new item but I do love second hand stores just as good always great when you find something you love. I also learned if you buy yourself a gift card you can keep it aside for yourself and then use it when your favourite store has a sale, or keep it for an emergency, for instance we had terrible heavy rain last year and I did not have any rain jackets with hoods at home so I went to Warehouse and bought two together and threw them in the car, they were really good quality outdoor ones and also were on sale. I also like Mac Pac and Kathmandu. I also grabbed sports bags and packed them with toiletries to be prepared in case we needed to evacuate our house with the heavy rain and landslips in the area. It is always good to be prepared. Also with Covid-19 a lot of things were closed and I did some online shopping and have everything delivered at home with free delivery. Another thing I have learned is that if you pack most of your belongings away and then work out what you need each season or if you wanted to go away on a last minute trip you have everything there. I also keep aside new t-shirts and sleep ware in my suit case or toiletry items and then on my birthday which is January can open it and use it new for the summer season in New Zealand and same with winter items, pack them away when you are not using them. You are less likely to go shopping when you can use what you already have aside. If the items are in good condition you can always pass it on to someone younger donate it to a charity store or if not in good condition use the t-shirts as cleaning cloths. I also keep some items that are a bit too small for me in case I have someone over such as family to stay and they have kids they can use what I have to wear at home like smaller sized sports gear or sandals around the house or sleep ware. If you have a special event to go to such as a wedding ask around if anyone has a spare suit or dress and clutch bag and heels. I did this for someone once and she loved having some dresses to pick out and clutch bags to borrow. I then in the end after wearing some of evening items sold them to a second hand boutique store and my clutch bags. I pared down my wardrobe to mainly sports gear for home and running errands. I also sold on some handbags for work that I no longer used but were still in good condition. For men’s gifts I liked to buy a nice leather wallet for my Dad and his favourite toiletry items which he appreciates once a year. I also liked home made gifts and often did home baking at christmas time or have given gifts of soap and hand cream for ladies and young women. My Mum loved Dior Perfume in the antique style bottles such as Miss Dior so I would save up for that and buy from Farmers or a Special Boutique Fragrance Store for her that bring her joy and memories. I also found she used rose water and would make her own and it was so much more affordable to buy at the health food store and the pharmacy for less than $11.00 and she would only buy one face cream and foundation and she had beautiful skin.
I also found free community events such as art gallery openings, library events, free courses online with Future Learn and You Tube has great free short tutorials on how to do things whether its is work related like Xcel spreadsheets or how to paint or draw online. I also discovered it is a great way to catch the bus if you wish to visit another town and do not wish to drive and it was so much more economical as well and you can just hop on and off with your backpack and go exploring.
My favourite thing is second hand book stores and the library as you can borrow books for free and second hand stores you can buy text books, classics to read and cooking books and magazines at a reduced cost. I have found many Lonely Planets at second books stores which I like to collect and carry around with me sitting at the beach or a public space to read. Always carry a water bottle with you and you can refill it often. I found this especially good in the car to take two water bottles as I always thirsty.
If you are struggling financially – the first step is to admit to yourself you need help. Also, you have done the best you can with what you have. No one is judging anyone for doing their best. I am also struggling financially and I was referred to a budgeting coach and counsellor and it has been the best thing. I learned so much from her each session and I feel more in control of my finances. Tragic circumstances can completely change one’s life and their health and lead us into very difficult financial circumstances. Often debt can mount up without thinking consciously. So try tracking your spending there are some great apps online or going to a budgeting advisor who can draw up a budget for you and keep up regular meetings with until you are able to manage it yourself. I always recommend for saving up for white ware and house hold furniture or see if there are some great affordable second hand options but do not go into debt for it as it is not worth it. I like to check out Consumer Magazine at my local library and online to compare brands. Sometime ago I had to resort to handwashing in the bath tub until we got a new washing machine as our really good one Bosch brand broke down. I find having less clothes and towels and linen equals less laundry. I was grateful for the hot weather so they could dry in summer time. I remember staying in cabins on my Contiki Tour in 2009 in the country side in France and we did a lot of handwashing or use the communal laundry facilities and ate communally and it was actually quite fun and made the trip so much more affordable. I always liked YHA and youth hostels as you can stay for a reasonable price or baches, we also stayed in budget hotels and motels and it was fine, I appreciated having hot shower and a nice meal. I buy bottled water as I dislike the taste of tap water and store in the pantry and I clean the fridge regularly and store all my food item in glass or plastic containers and easy to pull out when you need to make your lunch and wash all your yogurt containers and ice cream containers can use them for food storage or home baking treats. I like recycling glass at home especially mason jars can store pasta, rice, oats and pasta sauce in them and yogurt always tastes better in glass mason jar. We all need essential items such as toilet paper so make sure you have a good stock of that and dish washing liquid for the dishes and bathroom essentials such as soap, shampoo, toothpaste and toothbrushes and mouth wash, shampoo and conditioner etc. I learned that Pak N Save by far has the cheapest prices when it comes to essential items. I also like Countdown on special. I also found Farmlands is really good as well if you need to buy a large Nescafe coffee in bulk or Tea and the Pams and value range is great for basic coffee and tea from Pak N Save is good when someone is popping in for a morning tea or afternoon and home baking goes down a treat. I also have the value range bread and make toast and tea for our gardener when he comes over to do the lawns and a trusty box of weetbix and canned products if a hot breakfast is needed in the winter time. I always remember staying out on farm at school camp and really enjoyed learning how to survive the outdoors and in cold weather how to light a fire and sleeping in bunk beds and a hot breakfast was such a nourishing way to start the day.
On You Tube I have found free courses for art making, home cooking and baking, making Xmas cards personalised or a gift of tea or chocolate always goes down well. When I was working I did give once a year to Unicef, World Vision and Red Cross and other charities as I felt blessed with my circumstances in life often a bucket was put out for a donation. I also did that instead of buying Christmas presents for the family donate to St Johns Ambulance. The greatest gift you can give to someone is your time and being there for them when times are tough. Often it is the little things that count like a kind word, a thank you note, or helping them with a home cooked meal, or giving a book as gift to read. One of my favourite gifts I received was a book mark as I loved reading books and I used it all the time. I always loved getting a birthday card on my birthday that was so special to me. But if gifts are not that important to you, put that extra bit aside in your retirement savings instead or use it for yourself always keep some cash in your wallet even if it is $10 for anything unexpected such as a transport. Also, save one thousand one thousand NZ dollars in an emergency fund and then build up to 3-6 months worth of savings. Always save for things you want and make sure emergencies are covered such as a dental bill, car break down, and pay in cash for items and if you have a credit card use it wisely, use it to earn Airpoints or cash back offers and use it smartly when you travel overseas or keep it aside for emergencies only and use your Debit card for every day. If things do get tight always ask Mum and Dad or extended family to help out, often they want to know you are safe and well, and often they do not mind helping out if an emergency. They also do not want so see you struggle, under stress or feeling overwhelmed. My parents did not have much growing up being born in 1950s so they were very good at savings and they know what it is like to start out with very little. Sometime it is the wise advice I wished I had listened to from my Mum and Dad it would have saved me so much stress and angst. Too often we do things by ourselves where it’s best to have a support person to help you and you achieve your goals a lot quicker. I find talking to retired New Zealanders help as well they have so much financial wisdom that is so important to learn from them how they sewed their own clothes, started out with a veggie patch, how their learned farming and agriculture, how their built their house, and classic home baking recipes and reading books in their spare time and what they did for entertainment. They are also so much fitter than me, they love their daily walks each day and gardening, I so envy them and they seem so much more content and they same theme is hard work pays off now they can relax and enjoy their hobbies. Despite some having heath issues they keep being positive each day and nothing seems to stop them. I also enjoyed reading books and learning reiki from some and aromatherapy.
The other thing I recommend is selling any unwanted items on Trade Me from home I sometimes earn in a week one hundred to two hundred NZ dollars extra which I put towards groceries, fuel and hair cuts it helps my Dad who is retired so I’m learning from him how to buy and sell online. It like a win when you sell something. Small wins add up to larger wins. Also, try learning to live on a very small amount each week once you manage that then you can safely manage a larger amount. I find having a large amount of money is a bit overwhelming even my first pay check would budget to save and spend I was so use to living on less suddenly a larger amount led to too much temptation to spend on extras I did not need and then the temptation of credit cards was all too much. I now have a BNZ visa debit which the limit is two thousand dollars in one transaction but you use your own money and I find it’s just as good as the classic credit card if not better and suited my needs far better. I also like the old EFTPOS card as well would use that for essential items at the supermarket.
Another thing that I have done is cut out holidays and weekends away it was just adding up too much, so I’d rather go to the beach nearby to where I live, read a book a home or do a free online course about savings and budgeting instead or go for a walk in my neighbourhood there are some nice houses to look at nearby. The other thing some friends do is catch a movie or borrow a new book to read instead of going on a holiday or maybe go your favourite Indian restaurant instead as a treat instead of travelling to exotic India and explore your own town or city or get out to the country side if able to. Overseas travel comes with its stresses such as medical cover, accommodation, flights, airport delays, transport etc and the same with domestic travel it all adds up so rest at home or do some mindfulness instead. I always booked with Flight Centre and they would save me so much money for travel and accommodation and it was hassel free. If you have to travel for business learn from a Business Traveller how to get Airpoints, upgrades and affordable hotels online. I did this when travelling would book with Corporate Cabs NZ and they did everything right through to check in at the hotel. Business Travellers have to be on time for meetings and conferences or attending workshops so need to be punctual and well rested and well prepared and keep to their expenses in check.
Another thing I did was check real estate online, just to see how much my family home is worth, they do free appraisals and also teach you to how to save with your house and expenditure. They like having customers who are new and they go out of their way to get your business so always take their card or their free stationary they give as corporate gifts, you never know if one day you are in situation if you have to move or relocate or find a rental or an apartment or if you need to sell your family home to down size or retire. They also know a lot of legal stuff and can point you in the right direction with finances as well. They can keep you informed if the market changes as well. I think another thing is to get what insurances you need in your life in order and start early. That is so important to be covered for accidents, medical or what ever is important in your life stage. So talk to your insurance provider, there is a wealth of knowledge online. I happen to prefer AA insurance and State Insurance and AMP and Tower insurance and BNZ insurance. If you need to make a will book in with a family solicitor for free confidential advice I did this and came away learning about free university study online with Future Learn by Auckland University. I also learned from my family solicitor to collect red wine and art history – that is very old school how to be wealthy. I think that is another blog I shall have to write. I did give him a bottle of mission estate merlot he was most grateful. He is from the days of Yes Prime Minister UK series. You cannot beat the old school learning. My Dad likes buying red wine as gifts as he is retired so I am going keep doing that when I am retired.
Here are some links to get you started with savings and budgeting which I have found useful:
Calculators and money tools to manage your finances » Sorted
Citizens Advice Bureau (cab.org.nz)
MoneyTalks – Free, budgeting help, debt help
State Insurance NZ | Award-Winning Insurance Company
New Zealand Automobile Association | AA New Zealand
ANZ Bank New Zealand Ltd | Online Banking | ANZ
Westpac New Zealand – Helping Kiwis with their banking.
Budget worksheet – Work and Income
CAP NZ | Freedom from debt, poverty and its causes.
Transform a child’s life today | World Vision New Zealand
Yasmin Dawoojee
Private Thoughts of Yasmin 