Households struggling despite improving their financial position

The average household experienced an increase of 2.0% in their net disposable income during 2024, including 1.5% during the final quarter, according to the latest data from Stats NZ.

Household net disposable income is the amount of money a household has after all income (such as wages, interest, and child support) and outgoings (such as taxes) have been accounted for. It represents the money available for a household to spend, save or invest.

Despite the improvement, the average household is currently operating at a loss: households have now spent more than they’ve earned for 12 consecutive quarters. For every $100 that came in during the December quarter, $102.41 went out.

That reflects the higher cost of living that New Zealanders have experienced in recent years.

Five ways to increase your income and reduce your expenses

If you're feeling the squeeze despite a slight rise in disposable income, you're not alone. Here are five practical ways to boost your finances.

Ask for a pay rise. If you've taken on extra responsibilities or haven't had a salary review in a while, it might be time to negotiate. Come prepared with clear examples of your achievements.

Start a side hustle. From freelancing to renting out a spare room, there are plenty of ways to bring in extra income. Choose something that fits your lifestyle and skills.

Review your subscriptions. It’s easy to lose track of streaming services, apps and memberships. Cancel anything you’re not using regularly.

Shop smarter. Use price comparison tools, look for discounts and consider switching to generic brands. Planning meals and buying in bulk can also reduce your grocery bill.

Refinance your mortgage. Interest rates fluctuate, and you might be able to save by switching lenders or renegotiating terms. As your mortgage adviser, I can help you explore your options.