Why Budgeting Matters for Union Members
Budgeting isn’t about restricting what you spend. It’s about understanding where your money goes and making sure you are using it to support the life you want. For union members especially, having a solid plan in place can help manage periods of change, like job transitions, industrial action, or unexpected health events.
A good budget allows you to:
Cover your essential expenses easily
Save for short-term goals like holidays or Christmas
Build a safety net for emergencies
Reduce financial stress and increase peace of mind
With just a few simple steps, you can get better control of your finances and start building real financial resilience.
Tracking Your Spending: The First Step to Control
Before you can build a budget, you need to know exactly where your money is going. Most of us have a rough idea—but small purchases like coffees, lunches, and subscriptions can add up fast.
Here’s how to get started:
1. Choose a tracking method:
You can use a basic notebook, a free mobile app, or a spreadsheet. Some bank apps even categorise your spending automatically.
2. Record everything for at least one month:
Include every expense, no matter how small. This includes bills, groceries, transport, entertainment, and even cash withdrawals.
3. Review your habits:
At the end of the month, sort your spending into categories. You’ll quickly spot areas where you could cut back if needed.
The goal isn’t to feel guilty—it’s to see clearly. Once you know where your money is going, you can make better decisions.
Setting Up a Practical Budget
Once you’ve tracked your spending, you can start building a realistic budget. Here’s a simple structure that works well:
Essentials: Rent or mortgage, utilities, groceries, transport, insurance
Financial goals: Emergency fund savings, debt repayments, retirement savings (such as KiwiSaver contributions)
Lifestyle: Dining out, hobbies, entertainment, holidays
A good rule of thumb is the 50/30/20 rule:
50% of your take-home pay on essentials
30% on lifestyle wants
20% on savings and debt repayments
If your essentials are costing more than 50%, that’s okay—you can adjust. The important thing is to have a plan that suits your real life, not just a perfect formula.
Building an Emergency Fund: Your Financial Safety Net
An emergency fund is money set aside to cover unexpected expenses, like urgent car repairs, a sudden medical bill, or time off work. It gives you breathing room without having to rely on credit cards or high-interest loans.
Aim to build an emergency fund of around three months’ worth of essential living costs. That might sound like a lot, but you can start small. Even saving $10–$20 a week can build up quickly over time.
Here’s how to set it up:
Open a separate savings account that you don’t dip into for everyday spending.
Set a small, automatic payment to go into this account every payday.
Treat it like a bill—a regular, non-negotiable expense.
Watching your emergency fund grow can be incredibly motivating. Even a few hundred dollars can make a massive difference when life throws a curveball.
Tips to Keep Your Budget on Track
Budgeting is not a “set and forget” exercise. It’s important to check in regularly and make adjustments as your life changes.
Here are a few tips to stay on track:
Review your budget every three months. Update it if your income, bills, or goals change.
Celebrate small wins. Paid off a credit card? Hit your first $500 in savings? Give yourself a pat on the back.
Expect the unexpected. Life will always throw surprises. Your emergency fund is there to catch them.
Stay flexible. Some months you’ll spend more, some less. Budgeting is about trends over time, not being perfect every week.
Building Financial Strength, One Step at a Time
Budgeting isn’t about being perfect. It’s about being prepared. Whether you’re saving for a holiday, paying off debt, or just wanting less money stress in your life, a good budget and a solid emergency fund are the foundations of financial wellbeing.
Union members work hard for their money. Taking a little time to set up a budget means you can make sure your money works just as hard for you. Small steps today build financial strength for tomorrow—and that’s worth every effort.