Dollars and sense: What is a money mistake most Kiwis make without realising?

Sunday, 26 October 2025

You will always be living in a partially broken system, and you have to do the best you can, writes Rob Stock.

Senior business reporter Rob Stock answers your money questions. Got a question for Sunday magazine? Email it to sundaymagazine@stuff.co.nz

QUESTION: What is a money mistake most Kiwis make without realising?

ANSWER: Where do I start? This question is genuinely hard to answer because of the vast array of possible answers. Do a quick Google, or do the modern thing, disconnect your brain, and let AI do your research for you. You’ll get a bewildering number of plausible answers.

Do you begin answering it from a psychological/emotional/capability point of view? On this front, unresolved trauma, deficient education, and culturally-inculcated practices are the root cause of many of the bad money habits and practices that keep people poor. I have a friend who has worked with life coaches, and he swears that the cure for your bad habits lies in doing this deep work.

Or do you start from the micro end of things, and deliver lectures about good debt, versus bad debt, knowing that such lectures have never really “moved the dial” on national savings and wealth habits?

Or do you throw your lot in with political fixes, trusting (probably foolishly) to get politicians to save you by beefing up KiwiSaver, enabling affordable housing, or bringing in a national social insurance scheme to reduce your hapless unreadiness for sudden job loss or illness? I once saw a wonderful top 10 list of how not to be poor by an American. One of his points was not to let your country go broke.

Or, you could answer this facetiously, and suggest the biggest mistake is not to be born into a wealthy family, or letting yourself be struck with the bad luck of getting injured, falling seriously ill, or failing in your relationship, and having to create a new life from the ashes of the old.

The OCR has been slashed to 2.5%, its lowest since July 2022, easing pressure on homeowners. Political correspondent Zane Small reports on how the move could shift mortgage costs, voter sentiment, and the government’s economic fortunes.

My personal take on all of this is that you will always be living in a partially broken system, and you have to do the best you can.

So, here are my takes on avoiding the mistakes I see that keep people poorer than they could be, and unhappy.

One: Prioritise your fitness and health.

Two: Save and invest 10% of your income from day one (or as near to it as you can, with help from KiwiSaver employer subsidies). Do that, and all else being equal you will never have to worry about money. You may have other plans (business, property speculation, etc). Fine, but be intentional. Remember, as well, a dollar invested when you are 23 will enrich you far more than a dollar invested when you are 53 thanks to the wonder of compound interest.

Three: Marry/couple up well. A partner is not a financial plan, but they are a big part of your success in life, or your troubles. It takes two decent incomes to run a household these days.

Four: Avoid debt for anything but buying your house/apartment, or a business, and in some instances an education (unless you have literally no choice in incurring it). If you ever find yourself rationalising with the words “I deserve this…” You know you are stuffing things up.

Five: Reduce your exposure to marketing/lifestyle propaganda as much as you are able. Nobody can sell you happiness.

Six: Prioritise your career, especially when young, when you have the time, and the energy.

Seven: Get advice. It’ll just make you better at money.

Disclaimer: The information in this column is provided for general information only and is not intended as financial advice. If you require expert advice we encourage you to seek assistance from a professional adviser.

- Sunday Magazine