03/05/2026
How to build a budget
To create a budget, start by adding up how much money is coming into the household (your moni whiwhi
), and how much is going out (your spending), then work out the difference.
Making a plan for your spending is easy with the Sorted budget planner – give it a try!
You will either have money left over (a surplus) or not enough money to cover your spending (a deficit). The aim is to make as much of a surplus as possible so you have money left in your pocket to save for your goals or pay off debt faster.
If you usually spend less than you earn…
You can use a budget to work out how much you can save each payday and flow this towards what you want. We call this ‘paying ourselves first’.
If you usually spend more than you earn…
You can use a budget to see where that extra money is going, and how much you are spending on your debt. You can also see if there are ways to spend less or earn more.
A good budget can make it much easier to manage your money and reach your financial goals.
What you’ll need to build your budget
1
A record of your day-to-day spending
Your online banking will show most of your spending, but receipts from shopping and bills from the past three months can also come in handy.
These will show your regular expenses like rent or mortgage, car loans, pay-later options, personal loans, credit cards, rates, phone, power, rīanga
and subscriptions like Netflix or Spotify (as well as the other things that are easy to forget about – like Uber Eats).
2
A list of your annual costs
3
Your income information
4
Your savings and investments
The best budgets keep getting better
Keep tracking your spending
After setting a budget, it’s helpful to track your spending to see how it’s working. This way, you can see what's working and refine it over time.
You could try a spending diary or use an online tool or smartphone app. Setting up different bank accounts to manage your budget can work really well too.
Making the most of your income
Budgeting isn’t just about watching our spending. How much we earn also affects whether we have money left over for saving towards our goals or paying off debt. So part of our plan needs to include goals for growing income, too.
People’s needs typically increase over the years. And if our income doesn't grow, we effectively earn less each year just because of tāmi ahumoni
(when prices go up and our dollars buy less).
The Careers New Zealand website has broad salary information for different types of jobs.
Online job sites and salary survey reports also show what someone in your position with the same experience and skills should be earning. You can also contact recruitment agencies to find out what similar roles are currently paying.
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