Have a purchase in mind? See how it could fit your budget

Have you been wandering around a car dealership lately and spotted the vehicle of your dreams? Or maybe you’ve planned out the perfect kitchen renovation to turn your house into your dream home. Or perhaps you’ve got your heart set on a once-in-a-lifetime overseas trip.

If you’re dreaming of a big-ticket item, or investing in something to elevate your lifestyle, you might be wondering how you could find space in your budget to make it happen. Maybe the only thing holding you back is a bit of uncertainty about how you can take that dream and turn it into reality.

One simple way that you might get a clearer picture is by thinking about what the repayments on a personal loan might look like.

It might be more within reach than you think

Although the sticker price you’re looking at on a car window might seem high, or the cost of that new bathroom could look like quite a lot, it may be more achievable than you first think. Tools like Better’s loan repayment calculator can show you what the repayments might look like on a personal loan. Once you’re equipped with that information, you can more easily work out whether it’s likely to be a comfortable fit for your budget, whatever your financial situation might look like.

New Zealand lenders are required to only lend an amount that borrowers can afford to repay, so you’ll still be subject to those checks if you go ahead with any loan. But it can be really helpful at an early stage to get your own idea of what feels right to you.

A weekly number can be easier to work with

Most of us are used to working in smaller numbers that fit into our weekly or fortnightly household budgets. We might think about groceries in terms of the $200 or so we spend a week, rather than the $10,000 (ish) that adds up to over a year. In the same way, breaking a larger purchase price down into the weekly, fortnightly or monthly repayments you might make on a personal loan can be easier to work with, and more easily understand how that would work with your budget. A $15,000 car might seem less daunting, for example, as weekly payments of $98.  

Make it fit your everyday life

Personal loans can be tailored to fit with the way that you manage your money. You might be surprised at how many options there could be. If you’re paid fortnightly, you can have repayments on that schedule. Or if monthly suits you better, you can align your payments, too. You can also choose a longer or shorter loan term to fit your wider goals, whether you’d like to clear the loan early and pay less interest overall, or whether you’d like to take a more slow-and-steady approach.

A quick check before you decide

With a bit of information, you’ll be in a good position to decide whether now is the right time for you. It’s always a good idea to take a beat and carefully weigh what’s right for you. But knowing what your options are, and how a loan could work for you, if that’s the path you decide to take, can make you feel more confident about considering your next steps. You might choose to go for it now, or you might opt to wait for a time that feels like a better fit. Either way, you’ll have more information to help you get ready.

We’re here to help

Whether you’re thinking about a family car, the perfect wedding venue or a big family trip, understanding how the numbers might stack up can help you work out whether now is the right time. If you’re ready to take a next step, we’re here to help. 

See what the repayments could look like with the loan repayment calculator.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.