It's said that in the 21st century, Kiwis fritter 14 per cent more than we earn. Conversely, back in 1960 our parents saved on average 14 per cent of their income.
It's the "more" bit that's a real problem in New Zealand. We're a nation in debt. That even includes big earners. The majority of Kiwis will retire on nothing more than the state pension - $14,407 for a single and $22,164 for a couple. You can forget your Caribbean cruises on that. Only one per cent of us will retire on more than $50,000 a year, says financial planner and author Lisa Dudson.
What's more, every year it becomes easier to spend money. Once upon a time we saved up and bought consumer goods. Try going to a car sales yard with cash these days. They'll look at you like you're from another planet. Car sales people take it as a given that you'll buy on finance. It's the same with big boys' toys at high street retailers. The shop takes a cut from those credit deals they offer. Even fashion stores offer finance.
If you don't take the finance you can shop around for a bargain, or even better, buy second hand and let someone else take the loss.
Learning to say "no", teaching yourself to live more simply, budgeting and saving the surplus will go a long way to ensure that you retire on a comfortable income.
Living simply can become habit. The first port of call is perhaps to read a few books on the subject, providing you borrow them from the library and don't shell out too much cash or credit to buy them. There are also plenty of websites and email newsletters on the subject. One of my favourites is www.stretcher.com or if that's a bit muesli munching in style, just Google "money saving ideas" for endless great tips. Every dollar we can save adds up phenomenally quickly.
What will really turn the tide if you're spending too much is setting up a budget. It may be psychologically difficult. But there are plenty of templates online at websites such as Sorted.org.nz and Familybudgeting.org.nz to help. Templates can be downloaded for use in Microsoft Word or Excel from http://office.microsoft.com or Download.com.
One of the best ways to keep tabs on your income and expenditure is to use personal finance software such as Microsoft Money, Quicken Personal or one of many programs that can be downloaded from download.com.
What you should expect this software to do for you is download bank statements from multiple accounts, create and manage budgets, track spending habits, offer bill reminders, forecast your cash flow, and provide financial analysis. Great if you can get your act together to use it.