The New Zealand Bankers’ Association (NZBA) says we could all benefit from taking time to think about building our nest egg and saving for our future, and the long Easter weekend is the ideal time to do so.
“It’s good to take time to think about your financial future and set personal financial goals. By making a plan and managing your money, you can get ahead to save for short terms goals like a holiday, or think longer term to build a nest egg for a home deposit or your retirement,” said Antony Buick-Co stable, acting chief executive of the New Zealand Bankers’ Association.
“Online tools are a useful resource to assist with planning your personal financial goals. If you are looking for information about managing your money and making informed financial decisions, your bank is a great place to start,” Buick-Constable added.
Build your nest egg and get ahead with these money management tips:
- Set short and long term financial goals. Think about what you want in life and how your money decisions can support you to achieve that. Write down your short and long term goals. Think about what you need to do or change to succeed.
- Hatch a plan. The ultimate tool to help achieve your financial goals, increase savings or reduce debt is a budget. Take time to review how, when and where you spend your money. Tracking your expenses allows you to set a realistic budget and identify the areas where you can make changes. Making your lunch or cutting back on a coffee each day could save you thousands each year – it all adds up faster than you think! Most importantly, once you have set your budget you need stick with it. By staying with your plan you will soon see progress toward your goals. There are useful budget planning resources at www.sorted.org.nz or on your bank’s website.
- Grow your nest egg. Have short and long term savings goals. Whether you’re saving toward a much-needed holiday or a deposit for a house, by staying focused and committed to your goals you will see results. If you haven’t started saving for your retirement, it’s never too late – hop to it! For more information visit www.kiwisaver.govt.nz
- Manage debt. Take time to review any debt that you hold and make it your goal to be debt-free. Talk with your bank about how to get debt-free fast. Avoid ‘dumb debt’ and only ever borrow what you need and plan to pay it off as quickly as you can.
Having a nest egg can be a good investment for your future. So hop to it and take some time
this Easter to hatch a plan!
The Reserve Bank of New Zealand’s (RBNZ) ‘Summary of the dairy portfolio stress testing exercise’ released today has found that the scenarios tested were manageable for banks, and stated our banking system is robust.
It showed that New Zealand’s five largest rural lender banks are well placed to continue supporting farming customers through current challenges, as well as any severe circumstances in the dairy sector should they occur.
Since the Global Financial Crisis, there have been numerous legislative and regulatory changes for banks, including the requirement for banks to hold increased capital against their lending. This additional capital comes at a significant cost for banks, but this provides the banking system with a greater ability to cope with periods of stress.
“Banks with large dairy portfolios remain resilient, well-funded, and are well-positioned to continue working with dairy farmers through any further movements in dairy prices,” said New Zealand Bankers’ Association acting chief executive, Antony Buick-Constable.
“Banks are regular participants in RBNZ stress testing exercises, and also conduct their own stress tests – this contributes to a stable and robust banking system. Our banks understand the volatility and complexity of the dairy sector, and plan for this accordingly.
Despite the current lows in the dairy cycle, the longer-term outlook for dairy and protein production remains positive. It’s important to keep this bigger picture in mind and support our farmers during tough times, and that’s exactly what our banks do,” he added.
Banks continuing to support farmers
Banks work closely and constructively with their dairy farming customers to understand individual situations and needs. This includes helping to ensure business plans and banking arrangements reflect the conditions they are experiencing, and assisting them to make adjustments and reduce costs in o der to maintain a sustainable business.
“Banks are continuing to work closely with farmers facing financial challenges to see how they can work together through their current circumstances, in order to maintain the viability of their businesses. It’s very much in the banks’ interests to support farmers through both the tough times and the good. Banks will continue to play a key role in helping facilitate business sustainability and growth for farmers and New Zealand,” said Mr Buick-Constable.
A range of potential measures is available across the banking sector for farmers in financial stress, and these will vary from case to case. Depending on individual circumstances, banks might be able to look at reducing or suspending principal payments on loans and temporarily moving to interest-only payments. Banks might also consider allowing term deposits to be broken without associated costs. Banks can also help by providing affected farmers with financial management and budgeting assistance, and access to workshops on enhancing farm productivity and performance.
In times of financial stress, two-way communication is essential to help farmers facing challenges. Farmers who find themselves in financial difficulty or with a change in their financial outlook should speak with their bank as early as possible to find out whether specific assistance is available for them. Support for farmers is also available from a range of other organisations including Rural Support Trusts, Federated Farmers, DairyNZ, and the Ministry for Primary Industries.
The banking sector understands, and proudly supports, the huge contribution that the farming sector makes to our national economy. Banks have a long history of working with farmers to support their businesses and providing financial services to the farming sector, and this relationship will continue.
Ministry of Business, Innovation and Employment .