In Episode Two of our Inside a Financial Plan series, we continue Rachel and Dion’s journey with a strategy session focused on KiwiSaver, crypto, and property. This practical deep-dive explores how their financial plan brings together different investments, debt management, and long-term goals.
KiwiSaver: Building the Right Foundation
KiwiSaver often sits untouched, with many people defaulting into a fund chosen by their first employer. For Rachel and Dion, this was no different. Dion had been placed in a growth fund, while Rachel had been sitting in a conservative option for years without realising the long-term impact.
Through the strategy session, we worked through their risk profiles, attitudes toward market ups and downs, and what mattered most to them – whether it was fees, performance, or socially responsible investing. This highlighted how KiwiSaver isn’t just a set-and-forget account; it needs active attention to align with retirement goals.
Shares and Crypto: Balancing Curiosity with Discipline
Alongside KiwiSaver, the couple had dabbled in Sharesies and even a small amount of crypto. Dion’s approach was experimental, spreading small amounts across companies like Spark and Kiwi Property, while Rachel’s investments began more as a way to stay involved.
Crypto, on the other hand, was simply a curiosity play – $50 here and there into Bitcoin to “see what happens.” While these ventures created learning opportunities, the conversation made it clear that discipline and diversification are essential, especially while carrying a mortgage. Investments in KiwiSaver, crypto, and property must be weighed together within the broader financial plan.
Property and Mortgage Strategy
Property has played a huge role in Rachel and Dion’s financial story. Their first home in Manurewa, bought for $501,000, came with sacrifices – tight weekly budgets, credit card reliance, and unexpected repair costs. Yet, sticking with the property and prioritising mortgage repayments has seen its value double over 15 years.
They also own an investment property, originally purchased to help family, which has since grown in value. While opportunities to expand their portfolio were explored, timing and confidence have kept them cautious. This highlights how property remains central to their wealth-building journey, but only as part of a wider, carefully considered plan.
Budget and Lifestyle Trade-Offs
Day-to-day budgeting underpins every strategy. Rachel and Dion allocate a modest $150 each per fortnight as “fun money,” unchanged for nearly a decade, while directing most of their income towards shared goals. Despite a sizeable mortgage, their disciplined approach keeps spending below average, proving that sacrifice and structure today can create financial flexibility tomorrow.
Key Takeaways
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KiwiSaver requires active choices on fund type, provider, and risk level – not a “set and forget” approach.
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Diversification matters: Sharesies and crypto can play a role, but should be balanced against mortgage obligations and long-term goals.
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Property remains a powerful wealth-building tool, but it demands sacrifice, patience, and careful timing.
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Budgeting discipline – like capping discretionary spending – creates the foundation for financial freedom.
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Every element of a financial plan must work together to support both lifestyle and future aspirations.
Next Steps
This series is proudly sponsored by PocketSmith, the smart budgeting software that helps you see your money clearly. With live bank feeds, automated categorisation, and powerful forecasting, PocketSmith gives you the full picture of where your money’s going – and where it could take you.
At Lighthouse Financial, we use PocketSmith with many of our clients because it connects your day-to-day spending to your long-term goals. Unlike a spreadsheet, it can’t be fudged – real data means real progress. Whether you’re managing a household budget or planning for financial freedom, PocketSmith helps turn your plan into action.
Try PocketSmith today and get 50 percent off your first two months.
If you’d like to learn more, check out these other episodes below.
For a no obligation discussion to see how we can help you on the path to wealth, please contact us.
Disclaimer:
The information in this article is general information only, is provided free of charge and does not constitute professional advice. We try to keep the information up to date. However, to the fullest extent permitted by law, we disclaim all warranties, express or implied, in relation to this article – including (without limitation) warranties as to accuracy, completeness and fitness for any particular purpose. Please seek independent advice before acting on any information in this article.
