Many New Zealanders are living in 2025 with a very problematic financial situation. The economy is slowing down, there are far more unemployed people than there are jobs, consumer debt levels are suffocating, and people are spending money they don’t have on things they don’t need. The government does not help with any big projects or hiring.
Adding to the downforce is a rise in the cost of living, while wages aren’t keeping up. More New Zealanders rely on credit cards, personal loans, and ‘interest-free’ traps to maintain a lifestyle they can’t afford. The result? More stress, more debt, and zero financial freedom.
The Idea That Things Will ‘Sort Themselves Out’ is False
One of the most dangerous financial lies is believing things will “just get better” over time. They won’t. The system will bleed you dry if you don’t actively manage your money.
- Inflation isn’t going away – the price of groceries, petrol, and rent will keep climbing.
- Banks don’t care about your financial well-being – they’re happy to lend you money via credit cards and overdrafts, knowing they’ll make good profits from interest charges.
- The government won’t rescue you – we are seeing austerity in many areas and expect to see more.
Financial success isn’t about luck—it’s about making ruthless, calculated decisions. If you don’t budget, you’ll stay broke. You’ll drown in debt if you use credit cards and BNPL to fund a lifestyle you can’t afford. If you waste money on online shopping, you’ll wonder why you still live payday to payday at 50. I am writing directly because I keep seeing people’s mistakes despite sharing guides on MoneyHub for 5+ years.
Debt is the New Normal – But It Shouldn’t Be
Banks and financial institutions have spent decades brainwashing people into believing that debt is normal. It’s not. Debt is the reason people never get ahead.
- A mortgage that takes 30 years to pay off is a financial prison that can leave retirees with a mortgage-free home (at best) but with few (or no) other assets.
- A car loan means paying for something that’s losing value every day.
- BNPL services are designed to allow you to spend more than you should.
The problem isn’t just debt itself—it’s the attitude that owing money is “fine.” It’s not. You don’t have control when you’re in debt – your lender has the power. You go to work every day not to build wealth, but to make monthly payments. Interest rates, repayment schedules, and bank statements dictate your future. That’s not financial freedom – and I want people to know why it’s a national problem.
The Silent Crisis: New Zealanders Are Financially Unprepared
A growing number of middle-income New Zealanders are one financial emergency away from disaster. The data speaks for itself:
- A significant portion of New Zealanders have little to no emergency savings per a 2024 Kiwibank survey
- Many are relying on credit cards for essential expenses
- Even high-income earners are stretched thin due to debt, rising costs, and lifestyle inflation
And yet, people continue to act like nothing is wrong. They upgrade their phones, subscribe to more services, and finance cars they can’t afford while wondering why their financial situation never improves.
Here’s something most people don’t want to hear:
- You will never be wealthy if you’re not financially disciplined.
- The divide between the financially responsible and the financially reckless grows wider yearly.
- Wealth isn’t built by hoping things will change – it’s built by taking extreme ownership of your money.
That means:
- Cutting unnecessary expenses without hesitation.
- Refusing to take on bad debt, no matter how “normal” it seems.
- Investing early and often—because no one gets rich by “saving” alone.
- Avoiding financial traps that benefit everyone except you.
The Most Valuable Lesson for 2025
New Zealanders need to wake up. The financial system has a habit of making the rich richer while keeping the poor in debt forever. The only way to break free is to stop playing the game on their terms.
- Stop taking on debt
- Say no instead of yes when it comes to buying non-essentials
This guide is one of our most important, and I encourage you to read it from start to finish to see how changes in everyday habits give you financial power.
