Cost of living: Budgeting expert reveals 'Lotto' trick to help save money

  • 02/05/2023

As Kiwis' budgets continue to feel the pressure from rising costs, an expert has revealed the simple question New Zealanders can ask themselves to stay on track. 

BusinessDesk Investments Editor Frances Cook has shared her important steps to grow a strong money mindset to help New Zealanders through the cost-of-living crisis.

Cook said the worst costs of living pressures are on things that are really hard to cut back on, like food, housing and utility bills, so it's important people realise it's not their fault.

She told AM New Zealanders should start from a place of grace and forgiveness and then ask themselves what they are going to do about it.

Next, Cook advises setting a goal to stay on budget.

Think of the phrase: "If we won Lotto what we do with it?" 

Cook said that helps people identify their money priorities to set a goal that will keep them focused.

"Even if the budget is super tight and you're really struggling to pay for your everyday things, if you can keep something in there that is working towards your goal, that is keeping you happy, that is a bright spot - that's going to keep you on the budget longer," Cook said.

Her tips to stay on a budget include naming your bank after your goal or getting an account with a different bank, as long as the account is fees free, so you don't see it.

Watch the full interview above.