Insights
How to stick to your money plan - and win

Staying on top of your finances can help shape what your future could look like. At Pathfinder, we believe that when your money is aligned with your goals and values, you’re far more likely to achieve the outcomes that matter most to you. Below is one example of a simple framework you may find helpful to stay focused, intentional, and prepared for whatever life brings.

Staying on track with your financial goals is important, but it can feel vague until you define what you’re aiming for. Setting clear goals gives you direction and helps you understand what you want your money to achieve; whether that’s security, freedom, or opportunities for the future.

Tip – ask yourself: "What do you see when you image turning 65? Where are you? What are you doing? Who are you with?"

Having clear financial goals is one of the most effective ways to build good money habits. Practical examples might include putting aside $200 per week so you can travel overseas a couple of times a year, or contributing $100 per week into savings or investments to support your long term financial goals.

So if you saw yourself on a beach in Italy when you were 65, you could consider that a goal. Similarly, if you saw yourself on a plot of land where you'd grown a veritable pantry of edible plants, you could consider that a goal.

Once your goals are set, automation is your best friend. Having a portion of your pay automatically directed to where it needs to go takes out any guesswork or guilt when it comes to spending - because you’ve already taken care of the important stuff. Being prepared is your biggest ally, and small, consistent steps compound over time.

Put savings aside for a moment; people don't talk enough about the mental load of knowing when it's okay to spend money. By clarifying your goals and setting money aside for them (after covering your expenses) that remaining money becomes yours to spend, guilt free.

Goals aren’t static - they shift as life evolves. Paying off debt, landing a new job, starting a family, receiving an inheritance, or even just changing your mind about what matters can completely reshape how you want to use your money. When your goal changes, your money plan should change with it.

A helpful way to think about this is through Scott Pape’s Barefoot Investor approach, which splits your after-tax income into three clear and practical buckets:

60% – Everyday Account: the essentials — rent, groceries, bills, transport.

20% – Splurge Account: guilt‑free fun — dinners out, travel, hobbies.

20% – Fire Extinguisher Account: smile account — paying off debt building an emergency fund, saving or investing.

The strength of this approach is its flexibility, it can easily adapt as your goals change.

For example, if your original goal was to become debt free and you’ve now achieved that milestone - great! The funds previously directed to debt repayment can be redirected toward a new priority, such as boosting your retirement savings or growing your investment portfolio.

Similarly, if you were saving for a first home but decide you’re happy renting for the foreseeable future, your focus may shift from a short-term goal (like building a deposit) to a longer-term one (such as retirement planning). In this case, the same money might be better directed into your KiwiSaver account or other investment portfolios, depending on your timeframe and broader financial needs.

The same applies if your priorities change in other ways. For example, you might initially be allocating more toward the Splurge account to fund travel or lifestyle experiences. If your focus later shifts toward building wealth for retirement, you may choose to reduce that splurge allocation and redirect a higher percentage toward the Fire Extinguisher account instead.

At the same time, this approach is flexible in another way - even once the bucket percentages are set, you can still adjust how the dollars within each bucket are used. For example, you might choose to spend more on hobbies and less on dining out, while keeping the overall Splurge allocation the same.

Everyone’s priorities and circumstances are different, so what’s inside people’s buckets (the things they spend on) will vary. This approach isn’t a strict rule, but rather a helpful guide to organising your finances and planning confidently for the future.

Some life events require more immediate attention than an annual review. Major changes (such as selling a business, buying or selling a home, receiving an inheritance, or getting a pay rise) should prompt a closer look at your finances.

For example:

- If you’ve recently sold a rental property that helped supplement your income, it may be worth considering whether some of the proceeds could work harder in investments rather than sitting in a low yield savings account.

- Or if you’ve received a salary increase, it might be the perfect time to set new goals or increase your savings’ contribution, so the extra income builds your wealth instead of quietly disappearing into lifestyle inflation.

After a significant life change, it’s also important to check whether your KiwiSaver account and other investments are still aligned with your updated goals, timeframes, and life stage.

When something big happens (a conflict or escalation in war, a climate‑driven flood or wildfire, a major human rights or environmental controversy) it’s a timely moment to reassess whether your investments still reflect your principles on hot topics. If an event matters to you ethically, it’s worth checking how your fund screens, engages, or excludes in that area. A quick way to do this is to compare your fund on Mindful Money to see real holdings and how different providers approach exclusions.

Your investment strategy may have made perfect sense when you first set it up, but your circumstances may have evolved — and your ethical standpoint can evolve too. Reviewing your fund choice, contribution level, and investment mix helps ensure your portfolio continues to work in your best interests and aligns with your values.

Financial advisers can help you plan for the goals in your life that involve money; think retirement, buying a home or growing your wealth. A good financial adviser can help you feel empowered and excited about your future; they can take away uncertainty by replacing it with strategy. Instead of feeling fearful about whether you’ll be able to afford a house or retire with choices, you can discover whether these things are within your reach and other options if they’re not.

If you would like support with this, it may be helpful to speak with our in‑house financial adviser, Trent, who can talk through your options and help you assess whether your Pathfinder investments still reflect your goals and values.

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Pathfinder Asset Management Limited is the issuer of the Pathfinder KiwiSaver Plan and Pathfinder Investment Funds. Product Disclosure Statements for the offers are available here.

We encourage all investors to receive financial advice before making their investment decision. Pathfinder is authorised to provide financial advice if you would like support with your investment decisions. You can learn more about our service in our Financial Advice Provider (FAP) disclosure statement - Financial Advice.