Disclaimer:
The information on this website is for general guidance only and does not constitute financial or investment advice. Always do your own research and seek personalised advice from a qualified financial adviser or mortgage adviser before making financial decisions. All investments carry risk and past performance is not indicative of future results.
Key Takeaways
- Use reputable comparison tools to review recurring bills, then check the actual plan terms before switching.
- Create a detailed budget and track income, expenses, and savings goals.
- Reduce discretionary spending with realistic category limits.
- Automate savings into an account that suits your access needs and deposit timeline.
- Consider short-term housing or transport changes only after checking the full costs and trade-offs.
Living in a high-cost environment can be challenging, but practical money habits can still help you work towards a first-home deposit. This guide covers NZ-focused ways to review spending, compare recurring costs, and set savings habits without treating any single tool or tactic as right for everyone.
1. Use Websites and Apps To Help Save
Comparison websites and apps can help you review recurring household costs, fuel, and grocery prices. Treat the results as a starting point: check current prices, contract terms, fees, privacy settings, and whether the option genuinely fits your household before switching or buying.
Recommended Apps:
- PowerSwitch or Billy: compare electricity, and in some cases gas, plans using your address, usage details, or a recent bill. The cheapest option depends on your actual usage and plan terms.
- Gaspy: shows crowd-sourced fuel prices near you, so confirm the current price before making a special trip.
- Grocer or similar grocery comparison tools: compare grocery prices across participating major supermarkets and use shopping lists or price history as a planning aid.
2. Create a Detailed Budget
Categorising your expenses can help you understand where your money is going and where there may be room to adjust. A budget is a plan for income, spending, and saving, so use it to prioritise your deposit goal alongside rent, bills, debt repayments, and everyday essentials. For a complete framework, check out our guide on 7 steps to creating a monthly budget.
Budgeting Tools:
- Sorted.org.nz: use the free budget planner to chart income and outgoings and build a spending plan around your goals.
- PocketSmith: can use bank feeds, auto-categorisation, and category rules to organise imported transactions. Check subscription costs, privacy settings, and whether automatic categories need reviewing.
3. Reduce Unnecessary Spending
Set realistic monthly limits for discretionary spending such as dining out, entertainment, and non-essential shopping.
Try cooking meals at home using budget-friendly ingredients rather than eating out. Explore free or low-cost entertainment options like visiting local parks, attending community events, or enjoying movie nights at home instead of expensive outings. Avoid impulse purchases by creating a shopping list and sticking to it when you go shopping.
Small spending changes can free up money for savings, but the impact will depend on your income, fixed costs, and how consistently you can keep the habit going.
4. Increase Income
Increasing income can help, but check the after-tax result and any extra costs before relying on it for a deposit plan. Options might include asking about a pay rise, taking on part-time or freelance work that fits your schedule, or selling unused items. For gig or delivery work, factor in vehicle costs, insurance, tax, and time.
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5. Set up Automatic Savings
Automatic transfers from your main account to a separate savings account can help make saving routine. Choose an account and access settings that suit your timeline, emergency-fund needs, and deposit plan, rather than simply putting money out of reach.
6. Explore More Affordable Housing Alternatives
A lower-priced rental may help some buyers save, but compare the full cost before moving. Rent savings can be reduced by moving costs, bond, overlap between tenancies, commute changes, and the practical availability of suitable rentals.
If the full numbers still stack up, options may include a less expensive neighbourhood, a smaller place, or a rental that better fits your deposit timeline.
Temporarily flat-sharing can reduce rent and shared bills for some people, provided the tenancy arrangement, house rules, commute, and lifestyle trade-offs are workable.
7. Use Public Transport
Public transport can be cheaper than driving for some trips, especially where parking, fuel, maintenance, or congestion costs are high. Compare fares, travel time, reliability, safety, and any remaining car costs before assuming it will save money.
There may also be non-financial benefits, such as using commute time differently or reducing driving stress. Whether those benefits matter depends on your route, timetable, employer expectations, and personal circumstances.
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