Good things to do with extra income
Put some of that extra cash from the latest tax cuts into savings or paying off debt.
Retirement Commissioner Diana Crossan says any extra takehome pay not needed for daily living costs can be used to improve financial security.
“There are two steps you can take that will help your financial position now and in the future,” she says.
The first step is to pay off debts, especially high interest debts like credit cards and hire purchase.
The second step is to add the extra cash to existing savings or to start a new savings plan.
Putting money aside each week for Christmas presents and summer holidays can help to avoid debt in the new year, she says.
Those looking at retirement or saving for a first home should seriously consider joining KiwiSaver. More information is in a new booklet Sorted – Your Guide To Getting There.
It can be ordered from 0800-SORT MONEY or from www.sorted.org. nz. The website also has budget, debt, saving and KiwiSaver calculators and anyone needing budgeting advice can phone 0508-BUDGET.