For many people, investing feels like something reserved for the wealthy or the financially fluent. But the truth is, you don’t need a lot to get started. With just a little guidance, knowledge and consistency, you can begin building wealth today. In fact, if you’ve got a KiwiSaver account, you’re already doing it.

Starting can be daunting, but we can break it down into a few simple steps.

Step 1 – Budget – Determine what your incomings and outgoings are

Step 2 – Build your cash reserve

Step 3 – Define your goals – is it to repay debt? Is it to build up retirement savings?

Step 4 – Distribute your surplus to help achieve those goals, i.e. increase your KiwiSaver contributions, restructure your mortgage repayments, start saving/investing

Budgeting

The first step to investing is to understand your income and expenses. Income is usually straightforward, but expenses can be a bit tricky.

There are an increasing number of tools out there that can help track your spending and visualise where your money is going, such as:

• SortMe – Personal Financial Management App*
• PocketSmith – The Best Budgeting & Personal Finance Software*
• Calculators and money tools to manage your finances » Sorted

*These are subscription services, they each have a free option, with paid upgrades available.

Some banking apps have functionality that tracks your spending if you bank with them, e.g. Westpac CashNav or ASB Spend Tracker.

Once you understand your expenses, you can work out how much you can afford to invest. Often when you track your spending, you will identify areas where you can save a bit more – maybe cancelling a subscription or realising how much your coffees cost! These savings can then go straight into your investments without major changes to your budget.

Cash reserve

Life is unpredictable, and so is your financial journey. A solid cash reserve is a safety net, and one we think is essential. Whether it’s an unexpected expense, job loss, or opportunity that knocks, having funds set aside means you’re prepared, protected, and empowered.

We generally recommend anywhere from 3 to 12 months’ worth of living expenses, depending on your life stage and personal circumstances. If you’re just starting out, three months may be enough to buffer against sudden setbacks. But if you have a family, a mortgage, or are self-employed, leaning toward the upper end can provide peace of mind and financial resilience.

Getting started

When it comes to saving and investing, starting early is one of your biggest assets. The earlier you begin, the more time your money has to grow through the beauty of compounding.

Consistency and time often outperform trying to time the market or make big contributions later. Even modest monthly investments add up significantly when they’ve got a couple of decades to work.

Starting can feel overwhelming, but the 50/30/20 rule is an easy way to start. It’s a straightforward budgeting strategy that helps you make sense of your money. Here’s how it breaks down:

• 50% Needs: This goes toward essentials – rent or mortgage, groceries, insurance, utilities, transport, and minimum debt repayments.
• 30% Wants: This is your fun money – dining out, Netflix, weekend getaways, hobbies
• 20% Savings: This portion is for building your future; emergency savings, retirement accounts, investments, or paying off extra debt above minimums.

This rule is simple; it’s not rigid or perfect for every scenario, but it provides a useful framework to stay balanced. You can tailor it to your lifestyle, especially as your income, expenses, or priorities shift.

Revisiting the plan

Financial planning is fluid and should be revisited often. While your big-picture goals (like owning a bach, retiring early, or helping the kids with their first home deposit) might remain the same, the resources you have to achieve these goals change over time, as your age and stage change along the way. It is important to ensure you are on track to achieve your goals.

Chances are, if you are at the start or early stages of your career, your income may increase significantly over time, and it is easy to give in to the “lifestyle creep”. This happens when your expenses gradually rise to match your higher income, often without you realising it. You get a pay rise, and suddenly that daily coffee, upgraded car, or another holiday feels justified. But over time, it can erode your ability to save, invest, or build financial security.

That’s why it’s important to revisit your financial strategy regularly. Whether your circumstances have changed due to career moves, family developments, or new opportunities, checking in on your plan helps ensure you’re still heading toward the future you envision. A little reflection goes a long way toward keeping you on track for what truly matters.

Annual AGM

Set time aside at the beginning of each year to specifically talk about the year, what you want to achieve, the budget and what you will prioritise.  Write it down.

Then at the end of the year, set aside a specific time to review the year, look at what you have achieved and then celebrate success.

Repeat again for the next year.

This AGM makes you set aside time to discuss finances when you are both ready, helps focus on expenditure during the year, and you can track progress (or not).

Cambridge Partners approach

Our holistic approach means we don’t just help you grow your wealth; we also focus on protecting it. Whether you’re just starting out or managing significant assets, we believe true financial success comes from preparation, protection, and peace of mind.