Tax Cuts

From October 1 2008 all New Zealand earners have had a bit of relief to the pocket in the form of tax cuts. These have come about as the current Labour government tries to drum up support for the upcoming elections next month.

Here are the old and new NZ tax rates:

OLD RATES

Income	Tax Rate
$0 - $9500	15%
$9500 - $38000	21%
$38000 - $60000	33%
$60000 +	39%

NEW RATES

Income	Tax Rate
$0 - $20000	12.5%
$20000 - $42500	21%
$42500 - $80000	33%
$80000 +	39%

So as you can see its been a reasonable rejig of things. The bottom line for me on my current salary is that I'll get an extra $16.50 per week, which sounds pretty meagre, but does add up over time I guess. What's going to make a bigger difference to my pay packet is a pay rise that is in the pipeline and will hopefully (fingers crossed) be signed off in the next week or so. But I'll talk more about that later.

Income / Expense Report - September 2008

Sorry about the hiatus in posting. I've got a few things to write about so I'll drip feed them on here in the coming days.

I had a thought that some of you may be interested in where my money comes and goes, so here is my spending report for September. I use Quicken for all expenses, so it's pretty easy to whip a report together.

A couple of things to note - one unusual expense for the month was a piano, which cost a lot, but my parents have chipped in and paid for a big chunk of it. I played a lot of piano growing up, but have lapsed quite a bit since I left school, so have been keen to get back into it for a while. It may seem a bit extravagant to spend the best part of $3 000 on an instrument, but it's something I will get a lot of pleasure out of, and I've got a quality instrument which will not depreciate much (if at all) and will last many years.

Also, with my investment accounts, I don't have the most sophisticated way of tracking the rises and falls of individual managed funds I'm involved in. I tend to just update the balances in Quicken, and therefore these don't all get into the income/expense reports. So if you try and compare my net worth reports with my income/expense reports they may not make complete sense. Basically - my net worth report is 100% accurate while my income/expense report only shows my non-investment income and spending. Confused? Well here are the numbers anyway.

Income
Salary $2 416.26
Interest $75.48
Parents $2 000 (for piano)

Total Income $4 491.74

Expenses
Alcohol $16.99
Auto $387.57
Bank charges $0.25
Gifts given $10.00
Groceries $315.77
Home $78.02
Legal/Prof $40.00
Library $2.40
Misc $2 840 (piano)
Recreation $228.99
Rent $678
Tax $14.71 (excluding income tax)
Utilities $36.42

Total Expenses $4 649.12

Net Worth Report - September 2008

Assets
Cash $24.70
Current Account $1 206.18
Master Savings $1 588.98
Emergency Fund $9 625.63
Bill Savings $951.61
Kiwisaver $3 699.76
MAS RSP $8 222.08
Thoroughbred Super $10 335.17
Investment Cash $4 025.06

Total Assets: $39 679.17

Liabilities
Credit Card $1 661.44
Student Loan $66 992.20

Total Liabilities: $68 653.64

NET WORTH: -$28 974.47 (+$1 838.39)

Net Worth Report - August 2008

Assets
Cash $30.70
Current Account $744.87
Master Savings $379.00
Emergency Fund $10 000.00
Bill Savings $1 127.13
Kiwisaver $3 527.56
MAS RSP $8 149.19
Thoroughbred Super $10 237.32
Investment Cash $3 379.49

Total Assets: $37 575.26

Liabilities
Credit Card $1 129.72
Student Loan $67 270.60

Total Liabilities: $68 388.12

NET WORTH: -$30 812.86 (+$2 487.06)

Net Worth Report - July 2008

Assets
Cash $26.20
Current Account $309.19
Master Savings $9753.76
Bill Savings $1342.55
Kiwisaver $2534
MAS RSP $7628.93
Thoroughbred Super $10005.65
Investment Cash $3358.20

Total Assets: $34 958.48

Liabilities
Credit Card $709.40
Student Loan $67 549.00

Total Liabilities: $68 258.40

NET WORTH: -$33 299.92 (+4.7%)

Thieves!

I was reviewing my credit card statement this evening and found a transaction from June that I didn't remember making. I had spent a night away in another city, and stayed for 1 night in a hotel. I had booked a cheap rate online using rates-to-go and presented a voucher at check-in which was proof of booking and payment. They took my credit card number for "security" purposes, which I was a bit suspect about, but didn't think too much of.

Anyway, I see that the hotel has charged my credit card to the tune of around $140 when I had already paid over $100 for the night's accommodation. So suffice to say I'm a bit peeved, and have sent a rather terse email to the hotel in question. Which will be followed up by an angry phone call if I don't hear back from them.

Makes you wonder how many people ignore their credit card statements and get fleeced for hundreds...

Cycle Commuting

Since I started my new job around 6 weeks ago I've started commuting to work by bike. I started this for mainly logistical reasons - my new job has little in the way of convenient car parking, and the cycling time is less than either the combined car and walking time, or waiting for the bus.

Since I've started cycling to work I've suddenly realised how it has so many benefits, and wonder why I didn't do it sooner. For starters it's free - no more paying for petrol or bus fares for the commute; it's good for the environment - 100% green and carbon free; it's good for my fitness; it's fast; it keeps a car off the road and makes life easier for those who need to commute by car or bus...the list goes on.

The downsides? Well, it can be cold or wet. And my chances of dying on the way to work are possibly a tiny bit higher than when I was driving. But apart from that I can't think of many negatives.

So, it's frugal, green, healthy and fast. And it feels great to arrive at work refreshed, alive and ready to face the day. I would encourage anyone who can to give it a go - jump on your bike, I guarantee you won't look back.