As spring approaches, it’s not just your home that might need a refresh—your finances might need one too! Just like tidying up a room, getting your financial house in order can make a big difference in your peace of mind. Here are some simple steps to get started, and we’re here to guide you along the way, especially when it comes to things like KiwiSaver or paying off your mortgage faster.

1. Review Your Budget
One of the easiest ways to start spring cleaning your finances is by looking at your budget. Are there things you’re paying for but don’t really need? Maybe old subscriptions or extra spending on things that aren’t essential? Freeing up even a small amount of money can make a big difference, allowing you to pay down debt or boost your savings. Not sure where to start? We can help you review your budget and spot opportunities to save.

2. Understand What You Owe
Financial obligations can feel overwhelming, but they don’t have to. It’s important to know what you owe, whether it’s credit cards, personal loans, or car payments. Have you considered consolidating high-interest balances to make repayments easier? In New Zealand, personal loans and credit cards can come with hefty interest rates. We can look at your financial commitments together and see if there’s a better way to manage them, potentially saving you money in the long run.

3. Check Your KiwiSaver
KiwiSaver is a critical component of retirement planning, yet many people “set and forget” it. Taking the time to review your KiwiSaver can help you make the most of your retirement savings. Factors to consider include: 

• Is Your Fund Right for You? Your KiwiSaver fund should match your current situation – whether you’re young and just starting out, or closer to retirement. It’s worth reviewing whether the fund you’re in is aligned with your goals. Our KiwiSaver specialists can help you make sure you’re on the best path for your future.
• Performance and Fees Matter: Not all KiwiSaver funds are the same. Some give better returns or charge lower fees, which can make a big difference over time. Instead of trying to figure it all out on your own, why not talk to one of our experts? We can help you understand how your fund is performing and whether it’s time to make a change.
• Boost Your Contributions: If you’re already contributing to KiwiSaver, great! But have you thought about increasing your contributions? Even a small increase can lead to big rewards later. We can work with you to figure out what’s affordable and what will give you the best long-term results.
• Maximise External Contributions: Take advantage of the fact that your employer is required to match your contributions up to three percent, and that the Government will also contribute up to $521 to your KiwiSaver account, provided you’ve contributed at least $1042. Check that you’ve contributed enough to qualify for the full amount – it’s essentially free money!

Need help with your KiwiSaver? Click here to book a free review with our specialist.

4. Assess Your Insurance Coverage
Life changes all the time, and so do your insurance needs. It’s a good idea to check whether your insurance policies still match your current situation.

• Avoid Double Coverage: Sometimes people end up paying for the same type of insurance twice, such as a health policy through work and another personal policy. We can help you review your policies and make sure you’re only paying for what you really need.

• Is Your Life Insurance Enough? If you’ve recently bought a home, got married, or started a family, your life insurance may need updating. Make sure your personal insurance policies provide adequate cover for your current situation. Under-insurance can leave your loved ones financially vulnerable, while over-insurance means paying higher premiums than necessary.

• Think About Income Protection: If you’re the main earner in your household, income or mortgage protection insurance could give you peace of mind. It provides cover if you can’t work due to illness or injury. Our team can help you find the right balance to suit your needs.

Want to review your insurance? Click here to book a free assessment with our insurance team.

5. Review Your Mortgage Strategy
Your mortgage is probably your biggest financial commitment, but that doesn’t mean you’re stuck with it as it is. There are smart ways to manage your mortgage and pay it off faster.

• Is Your Interest Rate Competitive? Lenders change their rates over time, and you could be paying more than you need to. We can check whether you’re getting the best deal or if refinancing might save you money.
• Fortnightly Payments Save You More: Did you know that switching to fortnightly mortgage payments can help you pay off your home faster? We can explain how this simple change works and help you set it up.
• Use an Offset Account: An offset account can link your savings to your mortgage, helping you reduce the interest you pay. We can show you how this works and see if it’s the right option for you.
• Optimise Your Mortgage Structure: Our experts can optimise your loan structure to pay the loan off quicker or, if cost of living is a problem, make the loan more manageable by reducing payments. If you have a rental(s) or business, we often also identify tax restructure savings.
• Increase Your Repayments: Even a small increase can make a big difference over time. For example, on a $500,000 mortgage at a 6% interest rate, increasing your monthly payment by just $100 could save you thousands in interest and cut years off your repayment term.

Need to review your mortgage? Click here to book a free review.

6. Set Financial Goals for the Year
Once you’ve tidied up your finances, it’s time to look ahead. Whether you want to build an emergency fund, save for a holiday, or think about property investment, setting clear goals will help keep you on track. We can work with you to create a simple, achievable plan to meet your financial goals for the next 12 months and beyond.

A little bit of financial spring cleaning can lead to big results. With our expert guidance, you can clear away the clutter and set yourself up for a more secure future. We’re here to help you every step of the way.

To book a free, comprehensive review of your finances, click here.

The content of this article should not be taken as financial advice, or a recommendation of any financial product. Threefold is not liable or responsible for any information, omissions, or errors present. We recommend seeking advice from a qualified financial adviser before taking any action.