How to Stay on Top of Your Finances During a Cost-of-Living Crunch

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Be Better With Money

When everything from groceries to petrol to power bills is getting more expensive, it’s easy to feel overwhelmed. You’re doing your best, but your money doesn’t seem to go as far anymore. If that sounds familiar, you’re not alone. Loads of Kiwis are feeling the squeeze from the cost-of-living crisis.

But the good news? There are smart ways to take control of your finances, even when times are tough. In this guide, we’ll walk you through practical steps to help you manage your money, reduce financial stress, and feel more confident about your financial future.

1. Get Clear on Where Your Money’s Going

The first step to staying on top of your finances is knowing what’s really going on with your money. It’s time to track everything – rent or mortgage, bills, subscriptions, takeaway coffees, the lot.

Start by listing all your income and expenses. You can use a budgeting app like Pocketsmith or a simple spreadsheet – whatever works best for you. Once you can see everything clearly, it’s easier to spot where you might be overspending or where you can cut back.

Whatever you do, be honest with yourself – even if it’s a bit scary. You can’t fix what you don’t know!

2. Cut Back Without Cutting Joy

Trimming your spending doesn’t have to mean giving up everything you enjoy. Start by reviewing your “non-essentials.” Think streaming services, food delivery apps, unused subscriptions or impulse buys.

You might find a few quick wins:

Ditch the $50/month gym membership you don’t use
Cancel streaming platforms you barely watch
Meal prep a few nights a week to save on takeaways

Even small changes can add up to big savings. And remember, you don’t have to say goodbye forever – just for now, while you reset.

Learn more about how to pay down debt without sacrificing your lifestyle.

3. Prioritise High-Impact Spending

Not all spending is bad. In fact, some of it can make your life easier and even help you save long-term. Focus on:

Buying good quality (so you don’t have to replace things often)
Investing in things that improve your wellbeing (like decent food or heating)
Spending money on stuff that makes you feel in control – like financial advice or tools

The goal is to be intentional with your money. Make it work for you, not the other way around.

4. Rethink Debt – Don’t Let It Drain You

Debt can be a massive source of stress – especially if you’re juggling high-interest loans or credit cards. But here’s the thing: you don’t have to tackle it alone.

At Loansmart, we help Kiwis get smarter about their debt. That might mean:

Consolidating multiple debts into one easy-to-manage loan
Finding lower interest rates to reduce how much you repay overall
Giving you more time and flexibility to pay it off

We make it fast and easy to apply – no jumping through hoops, and no unnecessary paperwork. Just a smart solution tailored to your situation. You can apply in just 3 minutes. Many people get approval within 1-2 hours*, and same-day payment* is available too.

5. Build a Bit of Breathing Room

A solid emergency fund is a game-changer. Even if you can only put away $10 or $20 a week, it adds up. Having a financial buffer gives you peace of mind and helps avoid relying on credit when unexpected costs pop up.

Here’s how to start:

Open a separate savings account (so you’re not tempted to dip in!)
Automate a small weekly transfer
Treat it like a non-negotiable bill

Over time, you’ll build a little safety net that can make a big difference.

6. Make Your Money Work Smarter, Not Harder

When money’s tight, it’s easy to get stuck in survival mode. But even small changes can help you stretch your income further.

Here are a few savvy ideas:

Review your utilities: Can you switch to a cheaper power or internet plan?
Shop smarter: Plan meals around what’s on special, use loyalty points, or shop at lower-cost stores.
Get expert help: Talk to a financial advisor or a service like Loansmart that can help you explore your best options.

Remember, staying on top of your finances doesn’t mean you have to figure it all out alone.

7. Don’t Be Too Hard on Yourself

This one’s important. You’re not failing – the system is tough right now. Life is more expensive than it used to be, and that’s not your fault. What matters is that you’re taking steps to be in control.

Celebrate small wins, like paying off a credit card or sticking to your weekly food budget. Every bit of progress counts.

8. Know Your Options with Loansmart

Sometimes you just need a bit of support to get through. Whether it’s consolidating debt, covering an emergency cost, or just giving yourself a bit more breathing room – Loansmart’s here to help.

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