How to Deal with Financial Uncertainty

Six ways to deal with a lack of certainty with your finances

Let's be real – financial uncertainty is like that rogue southerly that hits just when you've planned a beach day.

Whether it's the cost of your daily coffee skyrocketing, more reports of redundancies, a potential or existing personal health issue, or just the general feeling that your wallet's doing the vanishing act, we've all been there.

New Zealanders are a resilient bunch, but that doesn't mean we don't feel the pinch. So, let’s ditch the doom and gloom and talk about how to navigate these choppy financial waters with a bit of ingenuity and a sprinkle of humour.

1. Expect Problems and Eat Them for Breakfast

First things first, accept that crisis and uncertainty are just a part of life.

None of us have a crystal ball to gaze into the future, though we can look back through recent history and see plenty of recent financial and non-financial crises, all of which could occur again in some form or another:

• 2001 – the 9/11 terror attacks, starting the global war on terror which included the long-running wars in Afghanistan and Iraq
• 2006 onwards – collapse of New Zealand finance companies‍
• 2008 – global financial crisis‍
• 2009 onwards – European sovereign debt crisis
• 2010 onwards – Canterbury earthquakes
• 2011 onwards – Syrian civil war
• 2014 onwards – Russia-Ukraine conflicts
• 2016 – Kaikōura earthquake
• 2019 – Christchurch terror attacks
• 2020 – the pandemic
• 2021 – onwards, surge in inflation and New Zealand recessions
• 2023 – cyclone Gabrielle
• 2023 onwards – conflict in Gaza
• 2025 – Trump foriegn policy and tariffs

A quick glance at the list above tells us one thing: expect the worst! This is just at a high-level, too. More relevant to our lives could be any number of events including:

• Job loss
• Health issues
• Failure of a small business
• Death of someone close
• House fire
• Relationship breakdown
• Car accident or mechanical failure

Sure, we all want to avoid these sorts of troubles, and breeze through life without issue or setback. Unfortunately, that’s just not realistic. So, if you accept the possibility of these sorts of occurrences and more, then build your own personal and financial resilience beforehand, when these sorts of circumstances arise, you’ll be far better off.

2. Give Your Budget a Good Old-Fashioned Tidy Up

We know what you're thinking: "Budgeting? Sounds about as fun as watching paint dry." But like finding that extra $20 in your pocket – surprisingly satisfying!

1. Track Your Spending: grab your bank statements, your receipts (if you still have them), and even your online shopping history. See where your hard-earned dosh is going. Are you spending more on takeaways than you thought? Are those subscription services quietly nibbling away at your funds? Tools like budgeting apps or even a good old spreadsheet can be your best mates here.
2. The "Needs vs. Wants" dance: This is where the magic happens. Do you need that daily artisan treat from the bakery, or do you want it? (Okay, maybe a bit of both, but let's be honest.) Prioritise the essentials – rent/mortgage, utilities, groceries – and then see what's left for the fun stuff.
3. The "No Spend" challenge: Fancy a bit of a game? Try a "no spend" week or even a "no spend" day. It's like a mini adventure in frugality! You'll be amazed at how much you can save when you get creative with what you already have. Maybe it's a picnic at the local park instead of a nice restaurant or taking your own lunch instead of buying something. You might discover that you can survive without a new item for a few more weeks!

Learn more: Pay yourself first, the guru’s way to budget

3. Up Your Skills and Explore New Opportunities

In a changing economy, being adaptable is key. Think of it as learning a new skill – it might be a bit daunting at first, but it'll make you stronger and more versatile.

Courses

Check out free online courses or workshops at your local community centre. Learning a new skill not only boosts your confidence but also opens up new job opportunities. Maybe you'll discover a hidden talent for coding or become a whizz at social media marketing.

There’s plenty of courses and micro-credentials available online, too.

Side Hustle

Got a hobby you love? Turn it into a side hustle! Whether it's baking, crafting, dog walking, or offering freelance services, there's always a way to make a bit of extra cash.

Don't underestimate the power of a good chat. Attend local events, join online communities, and connect with people in your industry. You never know what opportunities might come your way.

Primary Hustle

Ideally, your best path to earning more income would be through your ‘primary hustle’. That’s the main way you already earn income. For example, there’s no sense in a top salesperson, pilot, or managerial professional spending their weekends dog walking to earn an extra buck! Instead, people in those professions would be best served by focussing fully on maximising their main income source by seeking promotion or career progression, bonuses, and so on.

Learn more:

• ‍How to earn six figures
• New Zealand’s best side hustles
• The most lucrative skills that don’t require a university degree
• How to get a pay rise

4. Stay Calm and Seek Support

Remember, you're not alone in this. We're all navigating the ups and downs of life.

Lean on Friends and Family

Sometimes, all you need is a good chat with a mate or a supportive hug from your family. Talking about your worries can make them feel less daunting.

Talk to a Financial Adviser

The term financial adviser encompasses people commonly called investment advisers, mortgage brokers, and insurance brokers. This includes the team here at Become Wealth. Professionals in these roles can help you:

• Arrange your investments with your future life – investing is all about the future, of course – then keep you on track with a detailed plan to help you achieve your goals.
• Pay off your mortgage faster or at least structure your mortgage debts to suit your lifestyle and risk appetite, potentially saving you in interest payments.
• Establish suitable insurance policies to protect you, your loved ones, and your belongings against the unexpected.

Utilise Community Resources

Check out local community centres, budgeting services, and online forums for support. There are plenty of resources available to help you navigate financial uncertainty.

If you're feeling overwhelmed, don't be afraid to seek input from a budget advisor – note the difference between this term and the meaning of a financial adviser. Budget advisors are usually paid for by taxpayer funding so come at no cost to you. Budget advisors might work with you over a sustained period of time to identify issues with your cashflow and spending habits and then fix them.

5. Appropriately Insure Yourself, Your Things, and Your Income

Insurance might not be the most exciting topic, but it’s one of the easiest ways to protect yourself from financial disaster. The right cover means that when life throws a curveball — whether it’s an illness, a car accident, or a burst pipe — you’re not left footing the entire bill. At a minimum, consider health insurance for faster medical care, income protection in case you can’t work, and home and contents insurance to safeguard your biggest assets.

The key is to tailor your cover to your actual risks — there might be no need to insure your pet goldfish, but making sure your income and home are protected is a smart move. And don’t just set and forget — regularly reviewing your policies ensures you’re not overpaying or, worse, underinsured when you need it most.

6. Build Your Financial Lifejacket

Think of your emergency fund as your financial lifejacket – it's there to keep you afloat when things get a bit rough. Life can throw some curveballs, from unexpected car repairs to a dreaded leaky roof.

• Start small, dream big: You don't need to save thousands overnight. Even a few dollars a week adds up. Set a realistic goal and automate your savings. That way, it happens without you even thinking about it.
• The "Loose Change" strategy: every time you get some loose change, put it in a jar. You'll be surprised how quickly it fills up. It's like finding treasure, but you're the pirate!
• The "Windfall" wonder: Got a tax refund? A bonus at work? Another lump sum? Instead of blowing it all on a weekend getaway (tempting, I know!), put a chunk into your emergency fund. Future you will thank you!

7. Define What You Can and Can’t Change, Then Focus on What You Can Influence

Knowing the difference between the things you can control and the things you can’t is critical to manage financial uncertainty, or uncertainty of any kind.

The list of things you can’t change is nearly endless, though that’s often-what people focus on the most! You can’t influence things like wars, natural disasters, economic events, politics, the rate of inflation, mortgage interest rates, how house or share prices move (i.e., up or down), and any number of other areas.

Focussing on what you can’t control often takes our energy and attention away from what you can control. To get the best results in anything, your focus needs to remain on what you can influence, which is usually the ‘input’, such as how much you regularly contribute to investments, how much debt you repay, or what insurance policies you establish.

In Conclusion: Expect Financial Uncertainty!

Financial uncertainty is a part of life, but it doesn't have to define you.

With a bit of planning, a dash of resilience, and a good sense of humour, you can weather any storm. Remember, every dollar saved is a win, every new skill learned is a step forward, and every shared laugh is a reminder that we're all in this together. Enjoy the good times when you have them but always expect problems – then eat them for breakfast!