Many Kiwis are struggling with debt, and it can feel overwhelming trying to get back on track. The good news is that with a clear plan and the right mindset, there are simple steps you can take to fix your finances and move forward with confidence.
Step 1: Recognise When Something Isn’t Working
The first step to fix your finances is acknowledging the problem. Just like a personal trainer holds you accountable, you need to hold yourself to account when your financial habits aren’t serving you.
New Zealand households collectively owe over $390 billion, and with the rise of buy-now-pay-later options for essentials like food and petrol, debt can quickly spiral. Ignoring the issue or kicking the can down the road only makes things worse. Instead, admit that something needs to change and take action early.
Remember: it’s never too late to make adjustments. Whether you’re in your 20s or your 60s, there is always something you can do to improve your financial situation.
Step 2: Shift Your Mindset
Once you’ve acknowledged the problem, the next step to fix your finances is shifting how you think about money. Stop comparing yourself to others – what looks like success on the surface doesn’t always reflect reality.
Instead, focus on what truly brings you joy. Is it travel, security, family time, or experiences? Money is a tool to help you live the life you want, not just to keep up with others. By reframing your mindset, you can make smarter decisions that align with your own goals, rather than chasing someone else’s version of success.
Step 3: Build a Roadmap
Finally, to fix your finances you need a clear roadmap. That means setting goals – short, medium, and long-term – and making them SMART: Specific, Measurable, Achievable, Relevant, and Time-bound.
A goal isn’t just “pay off debt” or “buy an investment property.” Instead, think about the bigger picture: do you want to retire early with a certain income, upsize to a family home in five years, or travel every couple of years without financial stress? From there, you can decide which financial strategies – such as paying down debt, restructuring your accounts, or automating savings – will help you reach those goals.
Accountability is also key. Write down your goals, share them with someone you trust, and check in regularly. Just like with fitness, it’s easier to stick to a plan when someone is helping you stay accountable
Key Takeaways
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Recognise when something isn’t working – acknowledge the problem early.
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Shift your mindset and stop comparing yourself to others.
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Build a roadmap with SMART goals that align with your life vision.
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Use structure, process, and accountability to stay on track.
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It’s never too late to make a change and fix your finances.
Next Steps
If your finances feel off track, Lighthouse wealth can help. From restructuring debt to building a clear plan, we can guide you forward.
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.
