6 Steps to Sort your Money
Sorted NZ designed ‘6 steps’ to help Kiwis take control of their money and leave their money worries behind.
Bite-sized, motivating, and empowering, these 6 steps can guide you through building your financial resilience and wellbeing.
Step One: Start an emergency fund.
Having an emergency fund will give you a safety net for when things go wrong. Unexpected bills happen to us all, so getting an emergency fund built and ready will help to reduce any potential financial stress.
Step Two: Get your retirement fund on track.
Whether you’re with PSS or KiwiSaver, it’s important to know your contributions and which fund is best for you, so that you can work towards the retirement you want.
Step Three: Tackle your debt.
Get rid of the high-interest debt you might have on credit card, store card or personal loans. There are different approaches for tackling this, but the key is to pay it off as quickly as possible, whether it’s by paying more than you need, or seeing if you could pay it off faster by consolidating or refinancing it to a lower interest rate loan.
Step Four: Cover your people, money, stuff.
This step is all about protecting what’s important – the people in your life, your money (now, and in the future), and what you own. Take the time to review (or create) your will and to check that your insurance meets your current situation.
Step Five: Work out your retirement number.
Whether retirement is far in the distance or approaching faster than you’d like, ignoring it is the last thing you should do. It’s time to look at when you expect to retire and how long your retirement might be, and whether there’s a gap in how much you will have that you need to look at closing.
Step Six: Set your goals then reach them.
Having specific goals gives you something to aim for. Setting short, medium, and long-term financial goals gives you the chance to figure out how to plan and meet them.