Joined by Jason Leong, founder and CEO of PocketSmith, the Lighthouse team explore why so many people still feel broke despite earning good money. The conversation looks at why sticking to a budget in 2026 is harder than ever, and what actually helps people regain control of their cashflow.
Why you’re still broke, even when your income is fine
One of the biggest reasons people are still broke is simple: most don’t truly know where their money is going. Again and again, Jason and the Lighthouse team highlight that almost no one spends less than they think they do – spending is almost always higher than expected once it’s written down or tracked properly.
There’s also a behavioural element. During periods of uncertainty, like COVID or the recent cost-of-living pressures, people don’t always respond rationally. Instead of engaging more deeply with their finances, attention shifts to immediate needs like family, health, and day-to-day survival. Budgeting drops to the bottom of the list, even though it matters more than ever.
Sticking to a budget in 2026 is harder than it looks
Sticking to a budget in 2026 is particularly challenging because spending has never been easier, money can disappear with a few taps on a phone – sometimes before you’ve even left the house. Subscriptions, delivery apps, and small habitual purchases quietly add up, creating what the team describes as “death by a thousand cuts.”
Jason explains that budgeting tools don’t necessarily spike in usage when times get tough, because people often avoid confronting their finances altogether. However, there is a growing curiosity about money, driven by rising costs, conversations about side hustles, and the need to supplement income. The challenge isn’t earning money – it’s managing it in a way that supports long-term goals.
The clarity gap: knowing versus guessing
A recurring theme in the conversation is clarity. Many people jump straight to the “sexy” financial goals – buying property, investing, growing KiwiSaver – without understanding their baseline spending. Without that clarity, long-term planning becomes guesswork.
Jason notes that when clients finally track their spending properly using apps like PocketSmith, the numbers are confronting but powerful. Seeing the real data changes behaviour, creates accountability, and opens the door to better decisions – whether that’s adjusting discretionary spend or rethinking priorities altogether.
Small wins beat perfect budgets
For people who’ve struggled with money in the past, the advice is clear: don’t try to fix everything at once. Jason recommends starting with one small area – like takeaway food or subscriptions – and building confidence through small wins. Over time, curiosity replaces avoidance, and budgeting becomes less overwhelming.
The goal isn’t to stop spending altogether. As discussed, spending is fine when it adds value to your life. The real issue is unconscious spending that quietly limits future choices – whether that’s travel, family experiences, or retirement flexibility.
Key takeaways
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Most people are still broke because they underestimate how much they spend
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Budgeting fails when people avoid looking at their real numbers
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Sticking to a budget in 2026 is harder because spending is frictionless
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Small, focused changes work better than extreme overhauls
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Money should support what matters to you, not quietly control your future
Next steps
To help you get clarity on where your money is actually going, PocketSmith is offering Cheques & Balances listeners 20% off for the next two months – download today.
If you’d like to watch more, check out these other episodes below.
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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.
