When people tell me they have a money problem, the first thing they often say is:
"I just need to earn more."
And sometimes, that is true.
There are absolutely times when increasing income is the right solution. Life is expensive, circumstances change, and many people are under genuine financial pressure.
But after more than 30 years working in banking, finance and wealth management, I have noticed something interesting.
For many people, the biggest challenge isn't how much money comes in.
It is understanding where their money is actually going.
In other words:
They don't have a money problem. They have an awareness problem.
The invisible spending that quietly adds up
One of the most powerful exercises I do in my workshops is asking people to look at their spending over a year — not just a week or a month.
Because our brains are very good at minimising small purchases.
A coffee doesn't feel like a financial decision.
A takeaway lunch doesn't feel like a financial decision.
A subscription doesn't feel like a financial decision.
A quick online purchase doesn't feel like a financial decision.
But small decisions repeated consistently create big outcomes.
A $6 coffee purchased five days a week doesn't feel significant.
Until you multiply it:
$6 × 5 days × 52 weeks = $1,560 per year.
Suddenly, that "small" habit has a very different perspective.
The point isn't that you should never buy coffee.
The point is that you should know what your choices are costing you.
Awareness gives you power.
The first step is not restriction. It is understanding.
One of the biggest mistakes people make when they try to improve their finances is going straight into restriction.
They create a strict budget.
They cut out everything enjoyable.
They tell themselves they need more discipline.
And then, eventually, it becomes exhausting.
Money shouldn't feel like a punishment.
A good financial plan is not about removing everything you enjoy.
It's about understanding what matters most to you and making intentional choices.
For one person, meeting friends for coffee might seem unnecessary.
For another person, that coffee represents connection, friendship and wellbeing.
For someone else, investing in their appearance might seem like a luxury.
But perhaps it helps them feel confident and prepared for their work.
The question isn't:
"Is this a good or bad expense?"
The better question is:
"Is this expense aligned with what matters most to me?"
The things we don't see are the things that control us
Think about driving a car.
If you don't know how much fuel you have, you are simply hoping you make it to your destination.
You might get lucky.
You might not.
Money works the same way.
When you don't know:
- what comes in
- what goes out
- what your habits are costing you
- what your priorities are
you are not making decisions.
You are reacting.
And reacting creates stress.
Awareness creates choice.
The simple exercise that changed my own thinking
Years ago, I went through my own expenses and started looking at the things I no longer needed, wanted or used.
I began selling items around my home.
Every year, I found more than $1,000 worth of things that were simply sitting there unused.
The surprising part wasn't the money I made.
The surprising part was how much clarity it gave me.
It made me ask:
"What else am I paying for that no longer adds value to my life?"
Sometimes financial progress isn't about finding more money.
Sometimes it is about finding the money that is already there.
Your money is a tool
One of my favourite conversations from my workshops was when someone described money as a tool.
They used the example of Minecraft.
You can have lots of tools available, but the right tool used for the right purpose is what makes the difference.
Money is exactly the same.
Money can create:
- security
- opportunities
- experiences
- generosity
- freedom
- choices
But first, we need to understand how we are using it.
Your next step
This week, I encourage you to choose just one area of your spending and look at the annual cost.
Not to judge yourself.
Not to feel guilty.
Simply to become aware.
Ask yourself:
"Is this still something I consciously choose, or is it simply a habit I haven't questioned?"
Because awareness is where change begins.
And often, the first step towards financial freedom isn't earning more money.
It's seeing clearly what you already have.
If you'd like support creating more clarity around your money, my resources and workshops are designed to help you understand your current position, identify opportunities and create a plan that feels achievable.
Because money confidence doesn't come from knowing everything.
It comes from knowing your next step.
Warm regards,
Kara Northcott
Financial Educator & Facilitator
Helping Kiwis become more confident with money through practical, easy-to-understand financial education.
027 666 6784
📩 kara@financialconsultant.co.nz
🌐 kara-northcott-financial-consultant.kit.com
Unsubscribe · Preferences
