10 things to do immediately

not the case in New Zealand, but self-imposed limits on government debt have limited its actions.

That’s not all, says Kerr. New Zealand is going through some awkward processes. For example, the banks have been told to hold more money in-house (capital). The costs of doing this get passed on, which in turn could stymie investment in agriculture and business, driving their confidence lower. That feeds into the job market.

“Ask any farmer,” says Kerr. “They wouldn’t mind paying an extra half a per cent or an extra 1 per cent if they could get a loan.” 2020 heralds the Chinese Year of the Rat. Rats are clever, quick thinkers, but live a quiet life. It’s an approach that could help many a Kiwi’s finances.

Secure your job. Wages and salaries are our biggest source of wealth. Most Kiwis are just weeks from financial meltdown if they lose their jobs. Look for ways to make yourself invaluable at work and boost your employability. Take on projects, hone your skills, move sideways, study, and seek out career advice. Insure your income. Take out income or mortgage protection insurance, which pay a regular sum, or total permanent disability cover for a lump sum should you be unable to work again. Most of these policies don’t cover redundancy so shop around if you need that. Insurance is complex so consider getting advice.

Build up a three-month emergency fund. With three months of living expenses under your belt for a rainy day you’re likely to be back up and running after redundancy or illness by the time your fund runs out. It also means you can lower your insurance premiums by taking a longer stand-down period. Budget. Whatever you earn, budgeting makes it go further. It truly is magic.

Streamline your KiwiSaver. Are you saving the $1042 a year for the 50 per cent return from the government

contribution? Are you getting employer contributions? Have you reviewed your fund? Do you even know if it’s conservative, balanced or growth? At the very least get yourself into a life stages fund that ages with you.

Write a will. If you’re in the half of adult Kiwis, according to the Commission for Financial Capability, who don’t have a will, write one. If not, you’re probably leaving your beneficiaries a bun fight. Comparison shop. Check out if you can get cheaper phone packages, banking, utilities, insurance and more. If you’re lazy or busy, phone your existing provider and ask if they have better deals. Most do.

Learn one thing. Get a book or sign up to a personal finance group on social media and start learning more about money. Set goals and plan. Decide where you’re headed and set a plan in place to get there.

Write a list of 12 things to do this year to improve your finances. Resolve to tick off one a month.