If you don’t want to go broke in 2026, you need to build your financial plan - not just think about it. A clear financial plan is what separates people drifting through the year from those actually getting ahead.
In this session, the Mike and James break down exactly how to build your financial plan step-by-step and why action, not just education, is what drives real results.
Why You Need to Build Your Financial Plan in 2026
We’re already a quarter of the way through the year – which raises a simple question: are you actually on track?
Building your financial plan isn’t about perfection. It’s about taking control of your future through small, consistent actions. As discussed, financial freedom comes down to a simple equation:
Education + Action + Time = Financial Freedom
But here’s the reality – most people stop at education. They listen, learn, and then… do nothing.
The difference in 2026 is execution.
That could be:
- Setting up a budget
- Reviewing your KiwiSaver
- Making a plan to pay down debt
Small decisions, compounded over time, are what actually move the needle.
The Simple Framework
At its core, building your financial plan is about balance – spending money now vs spending money later.
People often overcomplicate money, but the fundamentals are simple:
- Live within your means
- Be consistent
- Align your money with your goals
The roadmap shared in the session breaks it down clearly:
1. Get Your House in Order
Before anything else:
- Set a budget
- Ensure your income supports your goals
- Review KiwiSaver
- Put insurance and protection in place
- Build an emergency fund
Without this foundation, it’s almost impossible to get ahead./
2. Know Where You’re Going
If you don’t know your goal, you won’t know how to get there.
The most effective goals are:
- Specific
- Measurable
- Achievable
- Realistic
- Time-bound
And most importantly – they require accountability.
The research is clear:
- People who write down goals
- Share them
- And track progress
…are far more likely to achieve them.
3. Buy Your First Home (For Most People)
For many Kiwis, property is a key step in building long-term wealth.
The reasoning is simple:
- It provides security
- It protects against rising living costs
- It creates a pathway to future investments
From there, the plan typically evolves:
- Pay down your mortgage
- Then consider investment property
- Then diversify into shares
Budgeting: The Most Underrated Step
Budgeting gets a bad reputation – but it’s not about cutting everything out.
It’s about clarity.
Most people say:
“I don’t spend that much… but I don’t know where my money goes.”
That’s exactly the problem.
A good budget:
- Shows where your money is going
- Aligns spending with your goals
- Keeps you on track without removing enjoyment
A simple structure used:
- Fixed expenses (rent, mortgage, bills)
- Emergency fund
- Savings towards goals
- Spending money (yes – enjoyment is part of the plan)
KiwiSaver: The Easy Win Most People Ignore
If you want a quick win in your financial plan – start here.
You only need to make three decisions:
- Your fund
- Your provider
- Your contribution rate
But where people go wrong:
- Staying in the wrong fund
- Not aligning risk with their timeline
- Trying to time the market
Consistency matters more than anything.
Debt: What to Avoid (and What to Use)
Not all debt is equal.
Bad Debt
- Credit cards
- Afterpay
- Car loans (especially unnecessary ones)
These are high-interest, short-term, and often trap people in cycles.
Good Debt
- Owner-occupied mortgages
- Investment property debt
- Business debt
Used correctly, these help build wealth — but they still need to be managed and paid down strategically.
The Power of Small Changes Over Time
One of the most powerful examples shared:
- A $600,000 mortgage
- Standard repayments = ~$500,000 in interest
By increasing repayments:
- You can save $200k-$300k+ in interest
- Pay your mortgage off years earlier
- Free up cash to invest
That same money, invested over time, could turn into hundreds of thousands in additional wealth.
The key takeaway:
Small, consistent changes create massive long-term outcomes.
Key Takeaways
- A financial plan only works if you take action
- Education alone won’t change your outcome
- Start with the basics: budget, KiwiSaver, emergency fund
- Set clear, realistic goals – and make yourself accountable
- Avoid bad debt and use good debt strategically
- Small changes (like extra repayments) can save hundreds of thousands
- Consistency beats chasing quick wins every time
- Your income is your biggest wealth-building tool
- A plan should be simple, structured, and adaptable over time
Next Steps:
We’re picking one Cheques & Balances listener to build a personalised financial plan with and we’ll document the entire journey on the podcast – Apply Now.
If you’d like to watch more, check out this other episode 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.
