Why it might feel like there are more money decisions right now

Does it feel like you’re making lots of money decisions at the moment? Or like there’s a bit more admin in your mental load than normal? The good news is, it’s not you. There’s a lot going on, and the way we manage our money in the modern world can mean a growing number of choices to navigate every day. It’s something many New Zealanders have noticed, but there are ways to approach it to turn it to your advantage.

Why every purchase feels like it has a bit more homework involved

You’re not imagining it, there are a lot of things to decide. The information available to us has increased a lot in recent years, with more comparison sites to compare power companies, more apps to look for the best grocery prices, and an increasing number of subscriptions on offer for everything from toothbrushes to dog food.

It can feel like there’s a lot more involved in every choice we have to make. We’re not just heading straight for our local supermarkets on autopilot anymore, we’re faced with a lot more decisions and things to consider each week. Which supermarket has what I want on special? Am I on the right sort of power plan for my household’s use? Is my insurance still suitable, even if it’s become more expensive? Do I get fuel for the car now or hope the price drops in a few days’ time?

The trade-off of endless choice

With so many options on offer, there are a lot of choices to make each day. Sometimes, it can feel like making the decision once isn’t even enough, you need to keep checking that it remains the right one, and that nothing has changed.

Prices have risen a lot in recent years, including for a lot of the essentials that many New Zealand households spend much of their money on, such as power and food. This can mean you might be checking more frequently that what you’re paying is appropriate.

It’s the environment, not you

None of this is a sign that you’re doing anything wrong. There has been a lot of background noise in the past few years that can make it hard to relax when it comes to anything financial. We’ve seen interest rates rise, then fall, then start to rise again. The labour market was strong post-Covid, then weakened sharply. The cost-of-living has been an ongoing topic of conversation. All of these things can add to the buzz in your brain when you try to manage your household’s finances.

Retirement Commission research showed 62 percent of women were feeling financially uncomfortable last year and the number of women who were worrying about their money from one payday to the next was the highest since the research began. This isn’t an individual failing – it’s a sign that the past few years have been hard on many people.

Why tired brains put things off

In this environment, it makes total sense that some of the things you’d rather not be worrying about start to slip to the bottom of the “to-do” list. If you’re feeling a bit overwhelmed and tired, you might well be putting things off and thinking you’ll deal with it later. The problem is that sometimes “later” can turn out to mean you only get to it when it’s become a lot more urgent and stressful.

If you’re putting off reviewing your insurance, opening your bills, checking your KiwiSaver or even just replying to emails that you know you need to get to, taking the first step could be an immediate relief.

Making fewer decisions on purpose

What if you could simplify your financial life, and reduce the number of decisions you needed to make? Maybe you have fewer accounts, fewer repayments, and fewer payments to think about. Perhaps you could automate some of the things that are taking a mental toll on you.

Simplifying doesn’t mean you’re giving up control. You might just be able to remove lots of the tiny decisions that you don’t really need to make every week. When your bills are paid automatically or your saving happens without your input, you might get a bit more mental space for things you’d rather be thinking about.

It might be the case that a bit more time spent researching the big-ticket items now can give you confidence in a decision that will carry you through the next little while. Sometimes, having an expert to help you make some of the bigger calls can be really helpful. Other times, a chat with someone you trust could take the pressure off.

If you have questions about how you might simplify personal lending decisions, we’re here to help.

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.