Short-term money wins that can help quell financial anxiety

Sunday, 14 December 2025

Financial reslience is a reward in itself.

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

QUESTION: If you have financial anxiety, what are some small wins or things you can do to make yourself feel better?

ANSWER: Small wins are fine, but I would respectfully suggest you reframe your thinking. Instead of thinking about short-term wins to make you feel better, I think it is better to think about your money life in terms of resilience.

There is short, medium and long-term resilience.

These are things worth prepping for. They will make you happier, even if you doubt it now.

I think of short-term resilience as the weekday getting along without a struggle. Medium-term resilience is the ability to go three months without an income without being in crisis. Long-term resilience is being able to live decently, with choices, when you one day retire.

I think these correspond with three versions of you. You now, you in three months time, and you, the older, greyer, but wiser (and probably happier) long-term future you.

Each of the three has their challenges.

During your life, you will earn a finite amount of money. Most of us don’t earn heinous Kardashian-level, destroy-the-planet-by-flying-private-jet-wealth, so we have to be careful with what money we do earn. This is the lot of humanity, and it is not a dreadful thing.

The first weight off your shoulders is killing short-term debt (and never returning to it). These are the credit cards, the personal loans, the car loans and the buy now, pay later loans. Have no doubt about these. It is not “normal” to use them for day-to-day purchases. This enriches others, not you. So, if you have short-term debt, tighten your belt, and get rid of it. Go hard, and go fast.

Once the interest (and consumerism) burden is lifted from your shoulders, your income just goes further, and you feel less like you are working for the financier pocketing the interest on the money you owe them.

This will make you feel better, and the satisfaction is far deeper, and permanent, than the rush you get buying a new something.

More money in your pocket allows you to get onto part two of your money renaissance, which is medium-term and longer-term resilience.

Medium-term resilience is about having at least three months of expense available, and getting ahead on the mortgage, assuming you have one. Lots of people with home loans have been doing this. They learnt a horrifying lesson about how high mortgage rates can go, and have vowed not to be caught napping again.

I know three months feels like a tall order, so go for one month first, and build from there.

One thing that may comfort you is that people who make regular savings do score higher for financial satisfaction, even if they don’t have a great deal of money, so the payback is not only financial.

Then there is long-term resilience.

This, for most, means house and super (KiwiSaver) savings. I would argue getting your KiwiSaver settings right (have a play with the KiwiSaver “calculators” on the Sorted website) will reduce your a base level of long-term financial anxiety significantly.

I have always been a worrier, and I used to worry a lot about finding myself jobless. I think I was a borderline case of what people used to call (in less gender-aware times) bag lady syndrome.

This always meant I cared about the three resiliences, and did a lot when I was in my 20s and 30s, which I am very glad for now.

I think it has paid back in a calmer me, and one that is more satisfied with life, who models acceptable financial behaviour for his children.

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