Debt vs savings

It’s a nightmare to juggle, the question I asked myself for so many years and struggled to come to terms with was: which one is more important? Pay debt or save.

I’ve come to realise both are equally as important as each other.

Setting up an automatic payment helps with saving and it’s a much better option to have as back up, rather then getting a small loan or credit card because you’ll be digging yourself into a whole lot of interest if you can’t pay the amount off in full all at once.

Savings are awesome to use if there was an unexpected life event that popped up e.g needed new tyres or the washing machine broke.

It can take some discipline to save for a rainy day so if you have a tendency to dip into your savings every how and again make it hard for yourself to access the funds - look for an account with penalty or put it out of your sight and do kit linking to internet banking or mobile banking either.

Paying debt off at the same time will mean in no time you’ll have that little bit extra to save. Tip: pay off more then the minimum will mean paying debt off faster which reduces interest you are paying for. The longer you take to pay it off the more expensive it will get in the long run because interest adds up and before you know it you would have paid more then what you borrowed.

Managing debt and saving can be tough and New Zealanders are notorious for having money problems.

Youmoney accounts will help you get debt and savings under control you can: set savings goals, track how your payments are going and also personalise accounts by adding pictures.

Debt vs savings be good with money New Zealand and make a commitment to do both.


I love YouMoney - so much easier to see where things are going! I have nearly paid off all my debt, and in the new year will be able to start some serious saving to build a nest egg.