Reducing spending

There are several ways that you may be able to reduce your spending and these will depend on your individual situation.

Doing a budget will help. Since the birth of your baby, some costs could have gone down but others will probably have increased, and there may be new expenses to cope with too. Budgeting for extra spending such as Christmas, birthdays and repairs may help manage the fluctuations in spending. Also, include the cost of small items as they add up over time.

The government-backed website www.sorted.org.nz provides useful information and includes a budget calculator.

Review your expenses

When buying things you might like to ask youself:

• is it a need or a want?
• how will I pay for it?
• do I need a loan (see below)? If yes, can I repay the money in a realistic timeframe and at a reasonable rate of interest?

Loan repayments

Some questions you might like to consider if you are taking out a loan are:

•  can I afford the repayments?
• how long will it take to pay it off?
• what is the interest rate, and are there any other charges?
• is it the best loan rate available?
• when do I have to start making repayments?
• if it has a no-interest period, what are the conditions if I pay it off early or have not paid it off before the interest starts being charged?

If you need to take out a loan, we strongly advise you to talk to your regular bank or a trusted advisor about your options. When it comes to signing up, read the loan contract and, if possible, avoid having to sign on the spot.

If you have a mortgage you are struggling to pay, consider talking to your bank about managing your repayments. Loans that allow for flexible payments can be helpful. During a difficult period it can be helpful either to take a ‘repayment holiday’ or to change the loan to interest only. But it is usually best to pay off debt as quickly as possible to save on the overall amount you need to repay.

Reviewing your accounts

Talk to the bank about fees and interest rates, debt, credit cards and bill payments. You may find you save money by:

• paying off debts as quickly as possible starting with the most expensive, which may be your credit card
• consider combining debts into one loan as long as you pay less interest overall - your local bank or trusted advisor can give you advice
• trying to pay off your credit card by the due date to save interest charges
• trying to pay bills on time
• save on unarranged overdraft fees by checking you have enough money in your account to meet needs
• letting the company know if you cannot make a payment and talking to your bank about making alternative arrangements.

Shopping at sales

Taking advantage of sales may help buy essentials cheaply, but avoid buying too many extras as you may find you don’t need them later.

Local resources

There are services in your community that can support your family in a variety of ways. Plunket staff are aware of the services in your area so feel free to ask about them. Some local money-saving resources may be toy libraries, libraries and rental services such as car seat rental schemes. You may like to share and swap with friends and family/whānau or buy second-hand equipment. It is important to check that any used equipment is safe for your child.

The Great Little Cookbook is a great resource published by the Ministry of Social Development, provides money-saving advice on healthy eating and cooking for children.