The government has announced that there will be a rise in minimum wage in 2025, starting from 1 April. Employees on minimum wage can expect an increase in wage from $23.15 to $23.50 per hour.
In this cost of living crisis, any increase is helpful. However, it’s important that you still remain within a budget to avoid spending too much money and squeezing yourself too thin. You don’t want to run out of funds too early before your next paycheck, nor do you want to fall into debt.
Staying within your means is vital! If you are about to enjoy a pay increase as an employee on minimum wage (or any rate) we have put together our 6 best tips to help you better manage your finances with a higher income.
1. Compare Bills
Did you know that one of the best ways to unlock savings, or find the cheapest deals, is to compare your household bills? Here at NZ Compare, we are all about helping Kiwis make better decisions with their finances, ultimately empowering them to save money. Our range of comparison platforms makes it easy to compare household bills and find a deal that offers better value for money.
Within just a few minutes, you can compare broadband, power, mobile, and other finances including mortgages, personal loans, and insurances. When you embolden yourself to make a fully informed choice, you are more likely to avoid paying for more, when you can pay less. Don’t make the mistake of falling victim to loyalty tax, or sticking around with the same provider during price rises this year. It has never been more important to find yourself a better plan. Our comparison platforms are free, bias-free, and hassle-free so that you can make the best decision for you and your household, and take more control of your finances.
2. Reduce Power Consumption
Power bills can be one of the more cumbersome bills of the month. You can make a small, but significant difference to your power bill by reducing the amount of electricity your household consumes. There are many simple ways to do this. If you have the funds, it is worth upgrading any old appliances such as your washing machine, fridge, or chest freezer. Clean out the filter in your aircon. Turn devices and appliances off at the wall when you aren’t using them. Swap traditional light bulbs to LEDs. Click the button below to see our top 10 ways to save electricity at home to help minimise your power bill.
3. Cancel Subscriptions
How many subscriptions do you have? And how many do you use on a regular basis? You can unlock savings that make a true difference by decluttering your subscriptions, including streaming platforms, magazines, or gym memberships. Be honest with yourself and cancel ones you don’t use. Your budget will thank you for it!
4. Choose a High Interest Savings Account
A savings account with a high interest rate can be a great way to have your money grow for you. Jump on Money Compare to compare different savings accounts. At the time of this article being published, the BNZ Rapid Save account has a great interest rate of 4.55%. You can make this grow in the background by setting up an automatic transfer of funds whenever you get paid.
5. Track Spending Habits
It’s a good idea to track where your money is going, so you can identify where you can make changes and improvements. For a month, or a few weeks, note down everything you are spending money on, including household bills, groceries, subscriptions, and shopping. If you notice that you are spending too much money on, for example, takeaway meals or coffees, you can set yourself a goal to reduce this. Instead of getting takeaways every few days, reduce it to a once a week treat. You’ll be surprised how simple it is to make changes when you can pinpoint places of improvement through tracking.
6. Set Goals
Small, and bigger goals can be a wonderful way to keep you motivated. A short term goal could be a new TV or a phone. Whereas a long-term goal could be an overseas holiday. Be sure to reward yourself whenever you hit a milestone so that you can keep the positivity and celebrate your progress, in the hopes you keep going!
