Many people in New Zealand are starting 2025 in a tough financial situation. The economy is slowing, there are more people looking for work than jobs available, and personal debt is rising quickly. At the same time, people are spending money they don’t have on things they don’t need. The government is not investing in major projects or creating enough new jobs to help.
Making things harder, the cost of living keeps going up while wages do not. More people are turning to credit cards, personal loans, and “interest-free” payment plans to keep up a lifestyle they can’t afford. The result is more stress, more debt, and less financial freedom.
Hoping Things Will Get Better on Their Own is Not a Real Plan
A common but risky belief is thinking your money problems will just fix themselves with time. That usually doesn’t happen. If you don’t actively manage your money, the system will take more and more from you.
- Prices for food, petrol, and rent are still going up.
- Banks are not looking out for you – they make money from your debt through interest charges.
- The government is cutting back in many areas and is unlikely to step in and save people financially.
Doing well financially is not about luck. It’s about making smart choices. If you don’t budget, you’ll stay broke. If you use credit cards and buy-now-pay-later (BNPL) services for things you can’t afford, you’ll end up with even more debt. If you waste money on shopping, you’ll wonder why you’re still living paycheck to paycheck in your 40s or 50s. I’m saying this clearly because I’ve seen the same mistakes for over five years while running MoneyHub.
Debt Has Become Normal – But That Doesn’t Make It Right
Banks and finance companies have spent years making people believe that debt is normal. It’s not. Debt is the main reason many people can’t move forward financially.
- A mortgage that takes 30 years to pay off leaves you with a house, but often very little else.
- A car loan means you’re paying extra every month for something that loses value.
- BNPL plans encourage you to spend more than you should.
The bigger problem is how people think about debt. Many believe it’s fine to owe money, but that mindset gives power to lenders. When you’re in debt, your money decisions are controlled by interest rates and repayment plans. That’s not financial freedom – and it’s a serious issue across the country.
New Zealand’s Hidden Financial Problem
More and more middle-income households in New Zealand are just one emergency away from serious financial trouble. The numbers prove this:
- Many people have little to no emergency savings (according to a 2024 Kiwibank survey).
- Credit cards are often used to cover basic costs.
- Even high earners are struggling because of debt and rising living costs.
Still, many people act like nothing is wrong. They upgrade their phones, add more subscriptions, and finance cars they can’t afford – then wonder why their money never stretches far enough.
Here’s the truth:
If you’re not managing your money well, you’ll never build wealth.
The gap between people who make smart money decisions and those who don’t is getting wider.
Wealth doesn’t come from waiting – it comes from taking control.
That means:
- Cutting spending that isn’t needed
- Avoiding new debt, no matter how common it seems
- Investing regularly – because saving alone is not enough
- Being aware of financial traps that only help banks and retailers
The Most Important Money Lesson for 2025
New Zealanders need to take control of their money. The current financial system often helps the wealthy get richer while others stay in debt. The only way to get ahead is to stop following the system’s rules and make your own.
- Don’t take on new debt.
Say no to buying things that aren’t essential.
