Build Your Future: 7 Everyday Money Habits That Work
When you're in your 20s, it can feel like your money disappears the moment it hits your account. After essentials – rent, groceries, and transport – a good chunk often goes toward student loan repayments. And the rest? It can vanish without much to show for it.
Then, one day, you realise you're edging toward your 30s with not much in the way of savings – aside from KiwiSaver – and home ownership feels like a moving target. A small deposit means a bigger mortgage. Rising costs make it harder to get ahead. And it's all happening while you're still figuring out how to make your money work for you.
That's where small habits come in. Not the kind that changes your life overnight, but the kind that helps you stay in control. It builds confidence and moves you closer to the financial future you want. This could mean buying your first home, starting a family, or finally living a life where you're not living paycheck to paycheck.
If you're looking for financial planning tips for young adults or simply want to feel less overwhelmed by your money, these seven habits are a smart place to start - with tools and insights that make sense right for us here in New Zealand.
1. Budget With a Goal in Mind
Budgeting isn't about spreadsheets or sacrifice - it's about being intentional. A clear budget helps you see where your money's actually going and what you want to prioritise instead.
For many young New Zealanders, a simple rule of thumb like the 50/30/20 split can be a great starting point:
50% to essentials (housing, food, transport)
30% to lifestyle spending
20% to savings, investments or debt
Sorted's free budgeting tool is built for Kiwis and takes just a few minutes to personalise. You can also use your bank's tracking tools - BNZ's YouMoney, ASB's Save the Change, or ANZ's MoneyManager - to get a snapshot of how you spend.
Even if your income is tight, understanding your cash flow gives you more control. It can be the difference between drifting and starting to set aside money for things that matter - like building a deposit, paying off debt faster, or saying yes to something big without regret.
2. Pay Yourself First (And Automate It)
One of the most effective habits I've seen is this: treat your savings like any other bill. The moment your pay comes in, transfer a set amount to savings - before you start spending.
Even $20 or $50 a week makes a difference when it's automatic. You get used to living on a slightly smaller amount, and your savings grow quietly in the background.
Research from Westpac NZ found that people who automated their savings were more likely to stick with it and reach their goals sooner.
Start with:
A separate savings account (ideally with bonus interest for regular deposits)
An automatic payment that lines up with your payday
A clear reason for saving - e.g. "first home deposit," not just "general savings"
You don't need to be perfect every month. You just need to make saving a non-negotiable habit.
3. Make KiwiSaver Work Harder for You
If you're employed in NZ, you're likely already contributing to KiwiSaver - and that's a good thing. It's one of the simplest ways to grow long-term savings with minimal effort.
However, the key is ensuring that your fund suits your situation. Too many young people default into conservative or defensive funds, which can mean lower growth over time - especially if you're saving for your first home.
The difference between being in a growth fund vs. a conservative one could mean thousands more in your KiwiSaver by the time you're ready to buy.
Use our KiwiSaver Fact tool to check your current fund and compare options based on fees, performance, and risk level.
4. Watch Out for Lifestyle Creep
It's tempting to start spending more as you earn more - better car, nicer clothes, more nights out. But if your spending rises every time your income does, it becomes harder to build any real financial momentum.
This is known as lifestyle creep - and it's one of the biggest reasons young Kiwis end up with limited savings by their 30s, even with decent salaries.
Try to hold your lifestyle steady when you get a pay rise - and redirect that extra income toward savings, investments, or debt. You'll still enjoy the upgrade, just in a more meaningful way (like being closer to a mortgage approval instead of another Afterpay cycle).
According to ANZ's 2023 Financial Wellbeing Report, people with higher savings-to-income ratios experienced significantly less financial stress, regardless of how much they earned.
5. Automate What You Can
Between student loans, bills, rent, and everything else - managing your finances manually can be exhausting. That's where automation comes in.
Set up:
Direct debits for bills (to avoid late fees)
Automatic transfers to savings or investments
KiwiSaver contributions through your employer
Automation removes the need for constant willpower. You're building good habits without having to think about them every week.
As behavioural researchers often point out, the fewer decisions we have to make around money, the more likely we are to stick with the plan
6. Schedule a Monthly Money Check-In
One of the most underrated habits is simply checking in. Once a month - ideally on the same day - take 15–30 minutes to review your finances.
Look at:
Your spending over the past month
Your current savings and account balances
Any progress on goals (like saving for a trip or home)
What's coming up next (e.g. car rego, insurance renewals)
This habit builds awareness - and that awareness builds confidence. It also helps prevent surprises, like realising your savings have stalled or you've been paying for a subscription you forgot about.
Sorted's Financial Capability Barometer shows a strong link between regular engagement with your finances and improved outcomes, especially for those in their 20s and 30s.
Pair your check-in with something you enjoy - coffee, music, a quiet Sunday - and make it a routine you actually look forward to.
7. Keep Learning (Even in Small Doses)
You don't need to become a finance expert - but staying curious helps you make smarter decisions.
The more you understand how credit works, what KiwiSaver can do, or how compound interest builds over time, the more you can make your money work for you - instead of the other way around.
There are so many NZ-specific resources that make learning easy:
Sorted.org.nz — free tools, calculators, and explainers
Podcasts like Cooking the Books or It's No Secret
Instagram creators like @theoneupproject and @yourmoneynz
Community groups like Mindful Money or Te Ara Ahunga Ora's guides
Studies show that even basic financial literacy can lead to higher savings rates and reduced stress - and the earlier those habits start, the more powerful they become.
The truth is, most people don't get ahead financially because of one big decision - it's usually the result of a few steady habits, repeated over time.
If you're in your 20s or 30s and feeling like you're stuck between student loan repayments, rising living costs, and distant goals like buying a home, you're not alone. But you're also not powerless.
Habits like paying yourself first, reviewing your money regularly, and using KiwiSaver to its full potential can quietly shift your financial position - and your confidence.
Start with one or two. Keep it simple. Stay consistent. The results might take time, but they compound.
And before long, the goals that once felt just out of reach - a deposit, a buffer, a little more breathing room - start to feel a lot more doable. Whether you're just starting out or thinking more seriously about financial planning in your 30s, now’s a good time to build the habits that will get you there.
Jeshal Patel
Certified Financial Planner
Disclaimer
This article is general information, does not consider your financial situation or goals, and does not constitute personalised advice. There are no warranties, expressed or implied, regarding the accuracy or completeness of any information included as part of this article.