Anything you don’t like in your card tracker? Cancel it.
#3 – Invest less in KiwiSaver
Some investors decrease their KiwiSaver contributions. At least for a little while.
You might currently put in 10%. But your boss only puts in 3%. So you might go down to 3%, too. Just while interest rates are high.
If you’re on $100k, going from 10% to 3% means you have an extra $134 a week to play with.
Not the right move for everyone. But works for some people.
#4 – Increase your mortgage
I know this sounds weird. Why would I increase my mortgage if I’m struggling with high interest rates?
Often, debt soaks up a lot of our pay.
You might have a $10k hire purchase. That you’re paying back at $100 a week.
What if you increased your mortgage to pay off the debt?
You might get a lower interest rate. And you can spread that debt over a longer time frame.
In some cases, that could bring your weekly repayment down to $15 a week.
$85 extra a week freed up.
There are downsides to that. You’ll likely pay more interest over time.
That’s why investors who do this usually only do it for a little while.
Once interest rates come down, there’s more money to play with. So you start paying it off faster again.
Some people will do this just to get through.
#5 – Ask for a pay rise
Lastly, my favourite. Ask your boss for a pay rise.
It will surprise you. It often works.
A couple of investors I recently worked with got an extra $40k a year between them.
That doesn’t happen for everyone. But a $5k pay boost might mean you get an extra $80 a week after tax.
I always mention this one. Because people reply to this newsletter and tell me it works.
What if I can’t do any of these?
Not every tactic will work for everyone. That’s ok.
These aren't the only options to save (or make) more.
Listen to episode 1437 of the Property Academy Podcast. Ed and I discuss 10 ways you can save money (in 10 minutes).