How we are ‘beating’ inflation

Inflation has a hit a 30 year high. New Zealand is not alone; here’s how our just-announced 6.9% inflation rate compares with the rest of the world as of March 2022:

• China - 1.5%

• Singapore - 4.3%

• Australia - 3.5% as of Dec 2021

• Canada - 6.7%

• United Kingdom - 7%

• United States - 8.5%

• The Netherlands - 9.7%

• Spain - 9.8%

• Russia - 16.7%

• Argentina - 55.1%

• Turkey - 61.1%

Holy shit, Turkey!

So how are we ‘beating’ - inflation? For my husband and I, it’s a combination of lifestyle choices, earning more, and cutting costs.

I received a pay rise.

In April 2022, I received a 5% pay rise along with my bonus, where I had achieved 95% of the bonus target. If you work in a corporate job, you’re likely to have a yearly performance review and receive a pay rise, too.

I’m not an expert on how to be an exceptional employee or how to always exceed expectations and targets, but there are a few things I am particularly mindful about. When I first started the job, I found out what the KPIs were, noted them down, and made an effort to focus on them, being aware of how my performance was being measured. Whenever I didn’t know something and asked for help, I would make sure I learned how to do it for myself next time. Even now, if I ask for help and someone simply gives me the answer, I ask what process or resources they used to find it, so I can become more self-sufficient. In my everyday work, I take note of what works and what doesn’t, write a lot of note reminders, and practise, practise, practise!

If you are planning on asking for a pay rise, keep a record of every compliment and piece of positive feedback you receive from clients, customers, managers, and fellow staff. Have stats ready for how much you have improved efficiency or quality in your workplace, in solid numbers (‘I increased conversion by x%.’) Be sure to focus on how your experience, knowledge and performance contributes to and benefits your workplace, rather than simply listing out your achievements; translate it into what it means for the company.

If you aren’t successful in negotiating a pay rise, look at negotiating other benefits or work perks. Could you work from home more often, saving you time and money? Could you be covered for study to upgrade your skills and knowledge, which will help you land a higher paying role in the company? Could you condense your work week? (Don’t forget, in New Zealand you can apply for flexible working arrangements.)

If you are currently being underpaid, another option is to look elsewhere. Maybe it’s time to try something new, or find a better employer. Last year, I landed a new job that paid $14,000 more, after two months of applications, psychometric tests, phone interviews, interviews, and second interviews. Exhausting? Yes. Worth it? Also yes. Check out Trade Me Jobs for great career advice, including their helpful salary guide.

My husband finished paying off his student loan.

After 12 years, my husband has finally finished paying off his student loan! This has increased his fortnightly take-home pay by 13.2%. With so many deductions between our gross and net income - ACC, income tax, KiwiSaver contributions - it’s a relief to have one less thing to pay.

He did this through normal student loan repayments, plus a few extra manual repayments here and there - nothing crazy. If you are close to paying off your student loan and want to get there faster, like I did three years ago, you can make extra repayments via MyIR, or by doing it from your bank. It’s easy! Your app will have a ‘Pay tax’ or ‘Pay IRD’ option; simply put in your 8 or 9 digit IRD number (a 0 at the front if yours is 8 digits), the tax year (e.g. 31/03/2022), and the code SLS.

To find out how much more you’ll have in your take-home pay after paying off your student loan, you can go to a PAYE calculator like this one and alternate between having ‘Student Loan’ ticked and unticked. You’ll see the difference in real dollar figures!

Saving money with work perks.

I have had a number of work perks since last year, but have only recently started using them. One of them is a health & wellness benefit, which is a contribution of $500 towards any gym or fitness provider. It’s a perk I used to have working for another insurance company as well, and which seems to be becoming more common in corporate workplaces (hooray!). I used my health & wellness benefit towards a local yoga studio that I’d already been going to weekly, saving me $25 per class. Yin yoga classes have done wonders for my mental health and stress levels, so I am incredibly grateful to have been able to use this benefit.

My employer also offers free health insurance, with a low additional premium to add another person. Because of this, we were able to take out a new joint policy, cancel my husband’s health insurance, and switch him over - saving 9% on health insurance premiums.

Earning extra income.

We recently earned $200 by being guinea pigs in clinical research - a study done by the University of Auckland’s psychology department; a study about romantic relationships and work/life balance. They wanted couples to complete a few tests, followed by an onboarding survey, a daily survey for 3 weeks (i.e. 21 daily surveys), and a follow-up survey. Given the choice of reward, I chose $100 in Countdown gift cards, and he chose $100 in Westfield gift cards.

In March, I participated in another clinical study done by Massey University; a study on brain damage. They wanted people who weren’t brain damaged to complete a few tests, which I can only say was something like the psychometric tests you get when you’re applying for a job, only weirder. Identify the next one in a pattern. Select the correct colour of a word that pops up, even if the word itself spells out the name of another colour (e.g. the word ‘blue’ written in yellow). It was 1.5 hours of mental exercises, and worth the $20 Countdown gift card I earned from it.

If you also want to earn money from clinical studies, follow local universities on social media - that’s how I found out about the studies I signed up for!

Reducing weekly expenses.

Last month, we saved money on our week’s meals by skipping our Hello Fresh for that week, and taking advantage of a first-time offer to try Woop at 40% off.

Our usual weekly Hello Fresh meal kit costs $93.93 - no extras - while a Woop ‘Foodie’ meal kit cost $129 at the time. Instead of $93.93, we paid $77.40 for that week, saving 17.6% while still getting the same number of meals (3 meals for 2 people). We actually found Woop to be much higher quality than Hello Fresh, with ingredients that were fresher and more pre-prepped.

This month, we are saving money by using My Food Bag’s first-time offer - $100 off, discounted as $50 off your first two boxes. For the same number of meals, it is normally $112.99, so with $50 off, making the box $62.99, we are saving 32.9% on our usual price of $93.93.

We plan to continue doing the same thing with other meal kit subscriptions whenever we can - skipping Hello Fresh and using first-time discounts for that week. Not only do we save money, we get more variety, too. We’ve also saved $50 off our Hello Fresh a few times, after someone has signed up for Hello Fresh via my referral - i.e. after they’ve tried out a free box and enjoyed it! I have several free boxes to give away, so if you’re interested in week’s worth of meals, please let me know - or get $100 off here.

Of course, looking at the bigger picture…

We are investing so that our money beats inflation - in the long term.

I currently invest in shares through Sharesies, Hatch and Stake. So far, Sharesies has been the best to use for me as I find it the most user-friendly, and it provides access to many New Zealand companies I personally care about and which align with my values. Meanwhile, my husband invests in shares through his company’s discounted share plan, where part of his annual salary is used to purchase shares in the company. This renews for him every year. We also have a small amount invested in managed funds.

Our investing timeframe is long term (over 20 years), so at the moment, we’re simply making sure we remain consistent - and patient! - to reap the rewards in our 50’s to 60’s.

I hope you’ve found a few ideas for what you could do to cope with the increased cost of living right now. If you need help with your finances, here are some resources to check out:

WINZ

MoneyTalks

Sorted

Citizens Advice Bureau

Good Shepherd

IRD financial relief

Taking a savings break from KiwiSaver

Christians Against Poverty money course

All the best,

Sophia

Follow me on Instagram for more money tips & insights!

What are managed funds? Investing in managed funds explained

Think you're new to investing? Chances are, you're already an investor!

If you're one of 3 million New Zealanders in KiwiSaver, you already invest in what's called a managed fund. So what is it? Today I’ll be explaining managed funds, and how to invest in one.

If I were describing what managed funds are to a friend, I'd say, 'A managed fund is like KiwiSaver, except you can access your money whenever.'

Of course, there's more to it. KiwiSaver is a type of managed fund, it's just got different rules and benefits.

So how do they work?

A managed fund (also called an 'investment fund') is a fund where your money is pooled with other investors and managed by a fund manager to invest in assets such as shares, bonds, and property. Just like with KiwiSaver, you can adjust it to match your personal risk tolerance.

What are the benefits?

• You don't need to be an investment expert to invest in a managed fund. It's taken care of by a professional investment expert, your fund manager, including admin like taxes!

• You don't need to have a lot of money to start investing, as you can sign up with as little as $100 to $1000.

• You get diversification across different industries + access to investments and markets that would normally cost you a lot of money to buy into directly.

• You can access your money earlier. Apart from Kiwisaver, where you typically have to wait until you're 65, you can make a withdrawal whenever you want.

• If you invest in a PIE managed fund, the maximum tax rate on your investment income will be 28%. This is beneficial if you are a high income earner and would otherwise pay 33% on income over $70,000, or 39% on income over $180,000.

While these benefits are great, you've also got to be aware that:

• you won't get to directly pick and choose your investments

• fees differ between providers, so make sure to compare to make the most of your earnings!

'I'm ready! Where do I sign up?'

Here are some banks & companies you can check out:

• Pathfinder

• Kiwi Wealth

• BNZ YouWealth

• Milford Asset Management

• Fisher Funds

• Simplicity

I hope this has been helpful!

For more personal finance know-how, grab your copy of Mindful with Money and follow me on Instagram @mindfulwithmoneynz.

Sophia

Reflecting on my money in 2021

Happy holidays, everyone! I hope you had a wonderful, wholesome Christmas and are enjoying your holidays, especially after the year it’s been. With only 3 days till 2022, I thought: what better time to reflect on 2021?

So here’s what my 2021 was like, across my personal life, mental health, and financial wellbeing…

I quit my job without another one lined up

One of the best decisions I’ve ever made! If you find yourself constantly wondering if you should leave your job and look for something better, whether that’s a job with a better culture or starting your business to pursue a life of entrepreneurship, consider it a sign and follow your intuition. While I took some precautions, such as checking my emergency fund and reducing expenses, quitting my job before I had another lined up was still a terrifying risk for me.

I’m so glad that I trusted that things would work out. 6 months later, things are better than I could’ve ever imagined - not only financially, but in my sense of self-worth. I’ve found myself consistently feeling more confident, feeling supported in my personal growth, and having the energy to work towards my dreams. It certainly beats feeling burnt out almost all the time. (And I love that my new company has mental health leave!)

Everyone else I know who left the same workplace has since found a job where they have more supportive managers, a more positive work environment, a more competitive salary, and more satisfying, meaningful work. If you’re constantly experiencing doubt about where you are and pondering the the idea of finding something better, take the leap!

For more on my experience, check out my blog post here.

Our income changed three times

My husband and I had a change of income three times in 2021. First, I increased my income by $14,000 in June. Shortly after, my husband received a pay rise of $13,000 in July. Here’s what we did with our $27,000 pay rise.

In November, my income reduced by $10,140 when my boarder moved out after four years. I’d purchased my home in 2017, and I was lucky that right around this time, my husband’s best friend had been looking for a room to rent in the same area, and so I rented out the second bedroom a month later. Charging only $195 per week, less than the lowest rent in my area according to Tenancy Services, it made for a stable, consistent source of passive income these past few years.

After four years, it felt like the three of us were outgrowing our shared space. We explained that we had baby plans on the way, and he moved out mid-November.

So how much did our income change in 2021? $14,000 + $13,000 - $10,140 = an increase of $16,860!

We got to live together as a married couple for the first time

With the house to ourselves, my husband and I got to live together as a married couple for the first time - ever!

When my boarder moved in, my husband - my boyfriend at the time - was living with his parents. He moved in a year into our relationship, 6 months after I bought the house, when his parents moved from Auckland to Te Awamutu.

Living together as a married couple has been life-changing. With the second bedroom freeing up a lot of space, our home has given us more breathing space both physically and emotionally. It helped me take a more holistic view on reducing our income by $10,140 - that despite this, we are happier.

This year, we hosted our very first Christmas dinner for my family, with a delicious candlelit feast out on our deck. We bought the Hello Fresh Christmas Box, which was $215 for 4-6 people and included dishes like roast chicken, Christmas heritage ham, cherry, strawberry & peach trifle, honey-thyme carrots, salmon crostinis, and more.

The whole evening was perfection. At times like these, I feel incredibly grateful to have my own place to call home; a place to decorate, make warm and cosy, and invite loved ones over to.

Despite the judgment I’ve received a few times over the years, this year, I’ve worked through some of this discomfort and learned to let go. After all, there’s countless pros of having a small house. My small house means a small mortgage, as well as less to clean, less to tidy, less to maintain. At the end of the day, if you have everything you need, and know you’ve made the right choice for you, don’t let the judgment of others stop you from enjoying the life you’ve made for yourself.

As for the money we spent on the Hello Fresh Christmas Box? When my family offered to bring food or presents, I’d politely said no, explaining that there was plenty of food and that we weren’t doing presents this year (my husband and I mutually agreed, and we don’t see the point of meaningless clutter). I explained that the Hello Fresh Christmas Box cost $215, so if they wanted to, they could contribute towards this - anything would be appreciated. To my surprise, they generously covered the cost and then some.

We travelled somewhere new + rescheduled our travel plans

This year, my husband and I got to experience Rotorua together for the first time when we travelled there during Easter weekend. We mountain biked through the Whakarewarewa Forest, did the Redwoods Treewalk during day & night and Redwoods Altitude, and enjoyed an evening at Secret Spot Hot Tubs. It was magical and so, so worth it.

We had travel plans booked for Wellington in October and Queenstown in November, but of course, lockdown meant we had to reschedule. We’ve discovered wonderful new places to visit around Auckland for the past few months in lockdown, including some beautiful waterfalls and local walks. Using credit issued by Air New Zealand, we’ve since re-booked Queenstown for Valentines 2022, spending a week back where we got married. I can’t wait!

A dream come true + a new income stream

On 4th February 2021, my lifelong dream of publishing a book came true when a year of writing my book on and off paid off, and I became an author!

I started selling copies of my book by koha (donation). In the first month or two, I was breaking even and occasionally making a loss on some copies, especially since I’d underestimated how much shipping cost.

It took me about 3 months to make back all of my printing and postage costs, which was when I started making a modest profit from my sales. I set a price of $28 per copy after seeing that most donations were between $25 to $30, plus accounting for an NZ Post price increase.

Then came along @mindfulwithmoneynz on Instagram and mindfulwithmoneynz.com on Squarespace. I can’t express enough how happy I am to finally have a blog & online store in one, not to mention one that’s consistent with my style and feels like me (unlike my old Wordpress blog). If you’re thinking about creating an Instagram, blog, website, or online store to share your passion with the world, absolutely go for it!

Despite the highs and lows of 2021, I hope your year has been fulfilling, bringing you closer to the life of your dreams. I’m so grateful that with 91% of our eligible population fully vaccinated, the country has opened up again and we can go about our everyday lives - working, eating out, travelling, getting together with friends & family, and making things happen. Bring on 2022!

Sophia

6 money journalling prompts for 2022

Can you believe we're almost in 2022? With only 3 days to go, here are 6 helpful journalling prompts to help you reflect on the year it's been, celebrate your successes, and let go of anything that's no longer serving you, so you can level up your money in 2022!

What was my relationship with money like in 2021?

For example, did you ever find yourself feeling anxious, confused, or stressed when it came to money?

What would I like my relationship with money to be like in 2022?

For example, do you want to feel optimistic, happy, hopeful, grateful, stable, or secure?

What are 3 small steps I can take today to help make this a reality?

For example:

• opening a new savings account named 'Holiday', adding a picture of your next adventure that makes you feel excited & motivated, and setting a goal tracker on the account

• working out 20% of your fortnightly take-home pay and creating an automatic payment to your rainy day fund

• writing a list of your debts from the smallest balance to the largest balance to start your debt snowball plan

What were the best money decisions I made in 2021?

Let's delve deeper. Why? Were they aligned to your values? Did they allow you to express your authentic self? Did they give you more time to spend doing what you love? Did they help you pay off debt, grow your savings, upgrade your insurances, or anything else that gave you peace of mind? Did they help you tick off a bucket list goal? Did they help build your business, side hustle or passion project?

What money patterns or behaviours do I want to let go of in 2022?

It is December 2022. What does my dream life look like? What are the personal, work, and financial decisions I need to make to get there?

Wishing you a very happy holiday season,

Sophia

How to turn 14 days of annual leave into 47 days off in 2022

2022 is nearly here! If you work a standard work week of Monday to Friday, and would like to know how to turn 14 days of annual leave into 47 days off in 2022, I’ve got you sorted.

Here are all the dates you can apply for annual leave if you want to make the most of your time off:

• 5, 6, 7 January (3 days AL, 9 days off)

• 4 February (1 day AL, 4 days off)

• 19, 20, 21, 22 April (4 days al, 11 days off)

• 3 June (1 day AL, 4 days off)

• 27 June (1 day AL, 4 days off)

• 21 October (1 day AL, 4 days off)

• 28, 29, 30 December (3 days AL, 11 days off)

Be sure to get in as early as possible to increase the chances of your annual leave being approved!

And of course, if you don’t have enough plans to take all of your annual leave, check out my post on how to cash up your annual leave. That’s extra money for your savings or paying off debt!

Wishing you happy holidays,

Sophia

What we did with a $27,000 pay rise

From June to July this year, my husband and I were both very fortunate to receive a pay rise: an increase of $14,000 for my income, and an increase of $13,000 for his. Our last combined pay rise had been $6000 in 2019 (a story I share in the first edition of my book), so we were stoked to have more than quadrupled this number with a combined pay rise of $27,000!

So what did we do with it? Here are the four things we did with our extra income.

Sponsored a child

I’ve always wanted to sponsor a child. Prior to quitting my banking job, I managed to sponsor a child briefly before giving up my main source of income at the time for the sake of my mental health. With my $14,000 pay rise, I was delighted to be in the position to sponsor a child again! I signed back up to World Vision’s child sponsorship program and am now the sponsor of a 9 year old girl in India, helping to provide clean water, nutrition, education, healthcare and hope to her and her community for $50 per month.

Started studying

I graduated with my Bachelor’s degree almost a decade ago, and had been wanting to study again to learn something new, upskill, and gain another qualification that might help me further my career. I signed up to study a national certificate through Open Polytechnic, an institute that offers online and distance learning. While I have always needed to pay for my studies with a student loan, this time I simplified the process by paying cash for my first course, which was $500. The next course is $600 and the course after that $800, which I will also pay cash for - skipping over all the paperwork otherwise required in the process. It is refreshing being able to skip all the admin and not have to rely on Studylink to help pay for my studies! Bonus: completing my certificate online means that I’ve been able to study during evenings and weekends, so that it doesn’t disrupt my work at all.

Increased our savings

Although we managed to save 40% of our income while we were saving for our wedding and honeymoon, since getting married, we’d returned to our default saving strategy of 20% per the 50/30/20 rule. After we got our pay rise, we created a new savings account called ‘10%’.

Now, every fortnight when we get paid, we send 20% to our savings as usual - then send an extra 10% to this account. We do our best not to touch it, using it only if an important, unexpected or urgent expense comes up, and at the end of the fortnight, we send whatever is left to our savings.

This has worked incredibly well, and means that we are now saving 25% to 30% on average while always saving at least the minimum, fixed amount of 20%!

We’ve also increased our savings slightly with another new account…

Started a baby fund

Yep! We recently made the big decision to start a family in 2022/23, and have started a baby fund!

We are starting small, with $100 per fortnight going to our new savings account (named ‘Baby’, featuring a cheerful baby smiling adorably). Over the next year we’ll create a new budget, accounting for things like new baby expenses, specialist appointments, maternity clothing, prenatal supplements, and living on a reduced income. While we definitely have a lot to learn, we’re feeling very hopeful and excited for what’s to come.

If you’ve also received a pay rise recently, I hope this has given you some ideas on how to spend it meaningfully. Of course, if you haven’t quite figured that out, you can always do what my husband did with his $3000 pay rise in 2019: hide the pay rise from yourself! Simply calculate the actual dollar amount difference between your previous net (after tax) income and your current net income. Then, set up an automatic payment to send that exact dollar amount from your chequing account to your savings account every pay day. You’ll avoid the slippery slope of lifestyle inflation, while boosting your savings rate!

I hope this has been helpful. If you have any thoughts, please feel free to comment below, or contact me on Instagram at @mindfulwithmoneynz.

Sophia

What is provisional tax?

Hi friends,

Today I’d like to share with you what provisional tax is, and explain how it works (in New Zealand).

You've probably heard of provisional tax if you earn these types of income:

• self-employed income

• rental income

• income earned as a contractor

• income from a partnership

• overseas income

That's because provisional tax helps you to manage your income tax.

Provisional tax is not extra income tax you have to pay. It is a method of paying it, by breaking it down into simpler, smaller payments.

If you have to pay more than $5000 of income tax at the end of the financial year, IRD takes this (your residual income tax), adds 5% to it, then splits it into 3 instalments throughout the next financial year. This is the standard option.

Say you work as a full-time employee, and run a small business on the side. After filing your IR3 individual income tax return, you have residual income tax (think 'residue'; income tax left to pay) of $6000.

IRD says, "Oh no! That looks like a big tax bill. We don't want you to have to worry about such a big tax bill next year, so to make it easier, we will

• assume you will make 5% more next year

• break it down into 3 instalments for you."

• You'll now pay $6300 ($6000 + 5%) via 3 instalments of $2100 in August, January, and May.

You can also use the estimation option, if your income will either decrease, or increase by more than $60,000 over the next year. If you want to use the estimation option, simply let IRD know what your estimated residual income tax will be for the next financial year.

Say you stop your side business and your only income comes from your salary. You can also tell IRD and ask to re-estimate your provisional tax to $0. It’s that easy!

Find out more here, and discover more personal finance tips & tax know-how in my book, Mindful with Money.

I hope this has helped!

Sophia

5 ways to learn about money - for free

Financial literacy is important. And who doesn’t love free money resources? Today I’d like to share with you where I go to learn about money and all things personal finance - without paying a cent.

Eventbrite

You’ll find plenty of free money events on Eventbrite. Simply sign up for free, and in your ‘Interests’, go to the ‘Business’ section and select ‘ Finance’.

You’ll be recommended local workshops and seminars about property, savings, investments, and much more - with a mix of paid and free events!

Sorted

Sorted is made by the New Zealand and is dedicated to helping New Zealanders sort out their money. You can create your own dashboard to track your money goals, plus make use of the handy calculators - including mortgage, debt, Kiwisaver, investing, and more.

Podcasts

A fun and easy way to learn about money for free is through podcasts. You can learn about money and improve your financial literary while driving, working out, grocery shopping - practically anything! Some personal finance podcasts I would recommend are She’s On The Money, My Millennial Money, and the New Zealand podcast, It’s No Secret.

Library

It’s free to sign up to your local library, plus free to request them to buy the books you want to read. Some of my favourite personal finance books are The Richest Man in Babylon, Smashed Avocado, Money Diaries, You are a Badass at Making Money, and of course, Mindful with Money.

Social media

Follow banks and finance companies on social media, so you’ll know when they host workshops, webinars, and more. Westpac hosts free Managing Your Money workshops on topics like budgeting, saving, buying your first home, insurance, and more. I also love YouTube personal finance channels, like The Financial Diet, Aja Dang, and Sorelle Amore Finance.

Good luck!

Sophia

How you could get 25% or $200,000 towards your first home: First Home Partner explained

Hurrah! Two weeks ago, the New Zealand government announced the launch of First Home Partner, a new shared ownership scheme to help aspiring first home buyers whose deposit and home loan aren’t enough to purchase their first home.

First, let’s discuss: what is shared ownership?

Shared ownership is when you initially share ownership of a home with a third party, who purchases the home with you. In this case (through First Home Partner), it will be Kāinga Ora. You will be the majority homeowner and occupier, and Kāinga Ora will own a share in the home - one that you will buy out over time.

How much time are we talking about?

The rules are that you will need to do your best to purchase Kāinga Ora's share of the home within the first 15 years of ownership, and must have purchased the share in full by 25 years. You'll get a Kāinga Ora Relationship Manager who will meet with you yearly to review your financial circumstances and help you towards your home ownership goal.

How much you could get will depend on several factors, such as how much of a deposit you have and how much a participating First Home Partner lender is willing to lend you. For example, if you have saved 15% of the purchase price of a home and a participating bank is willing to lend you 60%, Kāinga Ora will contribute 25% to purchase the home with you in return for a 25% share of ownership in the home. You need to contribute at least 5%. Kāinga Ora will make a maximum contribution of $200,000 or 25% of the purchase price - whichever is lower.

To be eligible for First Home Partner, you must be:

• over 18

• a New Zealand citizen or permanent resident

• earn no more than $130,000 in household income

• have a good credit rating

• not previously received shared ownership support from Kāinga Ora

• buying the home to live in for at least 3 years

There are 5 steps to buying your first home through First Home Partner:

• Check if you are eligible

• Submit your application online

• Get home loan pre-approval

• Find and buy a home

• Become a full home owner

For the full eligibility criteria and more information, check out Kāinga Ora’s website, call them on 0508 935 266, or email firsthome.enquiries@kaingaora.govt.nz.

You’ll also find helpful downloads on the website, including the First Home Partner Brochure, an example of a Shared Ownership Agreement, and Kāinga Ora’s Guide to the Shared Ownership Agreement.

Good luck!

Sophia

Cashing up your annual leave

Did you know that you can get up to a week of your annual leave paid out in cash?

That’s right - of your four weeks’ minimum entitlement to annual leave every year, you can request for up to one week of this to be paid out to you in cash!

Here’s what you need to know:

• You need to have worked for your employer for at least 12 months

• You need to request your annual leave cash-up in writing

• You can request for up to one week of annual leave to be cashed up all at once, or make multiple requests throughout the entitlement year

• Your employer can say no, without providing a reason.

Annual leave holidays are paid at the rate of the greater of ordinary weekly pay and average weekly earnings. That means that one week of your annual leave could be approximately the following amounts, assuming you have a 3% Kiwisaver contribution rate and student loan repayments:

$645.24 on a $45,000 salary

$748.06 on a $55,000 salary

$851.15 on a $65,000 salary

$951.36 on a $75,000 salary

$1,048.70 on a $85,000 salary

$1,146.02 on a $95,000 salary

So if you haven’t got many plans this year - perhaps COVID has cancelled your summer getaway across the ditch - why not consider cashing up some of your annual leave? Whether you are saving for something special or paying off debt, that extra cash could make a big difference and help you reach your money goals faster.

Check out more information on cashing up annual leave from Employment New Zealand here.

Take care and stay safe!

Sophia