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Making that little extra go further

Wednesday, October 22, 2008
Making that little extra go further
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Article from Sorted.org.nz

Changes to tax rates will mean many Kiwis have a bit more take-home pay from this month. So how should you make the most of that extra cash in your pocket?

If you don't need the money to help you meet day-to-day living costs, there are two steps you can take that will help your financial position now and in the future.

Step one is to put the extra cash into paying off debts — focusing on high-interest debts, like credit cards and hire purchase.

Step two is to save anything extra, adding it to your existing savings or starting a new savings plan. If you haven't already, start an emergency fund — an amount you can call on if the unexpected happens.

To avoid facing debt in the new year, how about putting some money aside each week to help fund your Christmas presents and summer holiday plans?

Or, if saving for a first home or retirement is on your mind, this could be the right time to seriously consider KiwiSaver. Maybe you can afford the contributions now.

The Sorted website has tools to help you achieve these steps, including debt, saving and KiwiSaver calculators.

If you don't think you can afford to pay off debt or save, start by making a budget using the budget calculator on Sorted or call 0508 BUDGET (283 438) to talk to a trained budget adviser.

SortedArticle provided by Sorted.org.nz. To find out more, visit the Retirement Commission website www.sorted.org.nz — your independent money guide. It's packed with free information, tools and calculators to help you plan for retirement and manage money throughout your life.