Home | Moneymax Services | Liz Koh | Buy the Book | Testimonials | Articles | Useful Links | Contact Us

Recent Articles:

De-stress your Finances

Tips for Lending Money

The Changing Role of Financial Advisers

The Impact of Rising Interest Rates

Retirement Planning for Second Time Couples

The Ironies of Money

Get Ready for User Pays Retirement Care

Using Interest-Only Mortgages

Time Running Out for Pension Transfers

Apples and Oranges

The Unders and Overs of Insurance

Get Rid of your Money Hangover

A Fresh Start

Make Your Resolutions Real

Get Ready for 2014

How to Deal with Irregular Income

Get More Happiness for your Money

Extreme Ideas for Avoiding Christmas Debt

What to do with an Inheritance

Have Your Cake (and Eat it Too)

Transferring your Australian Superannuation

Investing in your Home

When to Start Investing

Getting it Together

A Regular Retirement Income

Good and Bad News for First Home Buyers

Lessons from Failure

Relationship Property Basics

The SKI Principle

Five Money Tips for the Self Employed

New Tax Rules for Overseas Pensions

Microfinance for Low Income Families

Make a Date With Your Money

Buying Property with a Low Deposit

When and How to Use a Financial Adviser

KiwiSaver Options for Retirees

Fighting over the Family Fortune

Fighting over the Family Fortune

Property Investment for Retirees

Five Common Investment Myths

Bring Home Your Aussie Super

Turn Knowledge into Action

The Happiest Man in the World

Record Lows for Mortgage Interest Rates

The Pitfalls of Overseas Investments

Avoiding Disaster with House Insurance

How to be Financially Secure

Frugality is not the Key to Riches

The Flight from Bonds

How to Lower the Cost of Your ACC Premiums

Have Your Say on Retirement Income Policy

How Safe are Your Bank Deposits?

How to Plan your Investment Portfolio

Retiring Early

KiwiSaver Checkup

Mighty River Greed

The Property Comeback

The Importance of Cash Flow

Start Saving with Two Simple Steps

Find your Personal Financial Flow

Seven Cures for a Lean Purse

Invest in Yourself

How to Make a Fresh Start

Are you Afraid of Investing?

Life is More than Money

Christmas Leftovers

The Bond Maturity Crunch

How Retailers Get You to Spend

Talking About Money

Four Best Money Tips for Christmas

Wriggle Room

Checklist for Retirement

Explaining Investor Behaviour

Dealing with Life’s Changes

Women and Money

Give and Be Happy

Plan for a Healthy Retirement

How to Recession-Proof your Finances

Three Reasons Not to Pay off your Mortgage Quicker

Ten Questions to Find Your Passions

Smaller Investors Miss Out on Advice

Free Help for Investors

How to Avoid Poverty in Retirement

Money for Two

The ‘As If’ Principle

Money Week

Opportunity Knocks

Asset Rich, Cash Poor in Retirement

Are You on Track?

Shrink Your Dumb Debt

Generous to a Fault

First Train The Teachers

Retiring on KiwiSaver

Is your Boss Short Changing You?

How to Avoid the Six Common Pitfalls of Retirement

Speculator or Investor?

An Ethical Dilemma

Good Habits for Kids

A Solid Foundation

Check Your Commission

What it Takes to Have an Extraordinary Life

Don’t Outlive your Money

Precious Investments

How Good is your Credit?

Elderly People Who Won’t Spend

Mind That Gap

Think, Shrink, Grow

A Budget for Baby

Seven Top Tips for Spending Less

Money Issues for Blended Families

Invest in Your Relationships

Do you Have a Poverty Mentality?

How to Pay Off your Mortgage Faster

Time and Money

What is Your Why?

Get to Know your Investments

Financial Advice for Kids Leaving Home

Turn Resolutions into Reality

Declutter Your Money

Grow Rich Gratefully

Spending Your Nest Egg

The True Cost of Lunch

How to Make Smart Financial Decisions

The Plight of Charities

Paying Your Adviser

A Winning Team

Cash in a Hurry

Time for Prudent Investment

Getting Used to Working Less

Get a Life

8 Steps to Financial Freedom (Part 2)

Five Secrets to Happiness in Retirement

Redesign your Life

Being Happy

Focus on the Horizon

Don't East Your Money

Secret Spenders

Last Minute Retirement Saving

Designing an Investment Portfolio

The End of a Relationship

Strategies for Financial Literacy

Get Rid of Dumb Debt

A New Era for Financial Advice

Top Up your Retirement Savings

Love and Money

The Price of Good Advice

Advice for KiwiSavers

Easing into Retirement

Five Good Reasons to Invest Offshore

Bank and Lose

Is Property Still a Good Investment

How to Set Goals and Achieve Them

Suddenly Rich

Happy New Tax Year

Dealing with a Shopaholic

If I Had My Life to Live Over Again

The Biggest Risk for Retired Investors

Survival Guide for Students

When Disaster Strikes

Money for Students

Invest in your Home

Save the Nation

Financial Advice for Women

Be Credit Card Smart

Where to Invest in 2011

How to Make More Money

Get Rid of Debt in Five Easy Steps

Five New Year’s Resolutions to Build Wealth in 2011

Money for Christmas

Your Leaky Money Bucket

Ready for a Holiday?

Money Tips for Travellers

Farewell to the LAQC

Planning for Baby

The Benefits of Being Generous

New Rules for Financial Advisers

Take A Christmas Break

Guaranteed Life Investments

One of Life's Certainties

What to do with your Tax Cut

Rent or Buy?

Spring Clean Your Investments

Make Money While you Sleep

How to Rebuild your Wealth after a Recession

Don't Just Retire: Reformat!

Guide to Retirement Villages

Make your Mortgage Manageable

Money Conflicts

A Guide to UK Pension Transfers

When Retirees Run Out of Money

The Eight Worst Credit Card Mistakes

Use Market Volatility to Make Money

What to do when Sharemarkets Fall

How to Manage your Money in Retirement

Three Good News Tips for First Home Buyers

Crunch Your Credit

Responsible Investing

Top Up or Miss Out

Budget Winners and Losers

Wealth is Just a State of Mind

Managing your Mortgage

Planning to Retire

Are you Missing out on Free Cash?

Giving is Easy

Are You Paying Too Much Tax?

Understanding your Money Personality

Work to Learn

Spotting a Risky Investment

Pocket Money

A Comfortable Life

The Next Crisis

Letting Go

Test Your Financial IQ

Time is Money

Savers are Losers

How's your Banking?

Why you Should Never Retire

Why Consumer was Wrong

When Things go Wrong

Giving to Children

A Good Financial Plan

Be Happy, Be Wealthy

Light at the End of the Tunnel

Financial Awareness Week

How to Get Rich Quick

Pre-approve your Mortgage

Get Rich with Banking Technology

Teach Kids About Money

What to do with Lots of Money?

A Responsible Budget

The Ethics of Debt

Mortgage Holidays a Last Resort

Think of Next Christmas

Overcoming Overspending

Prioritise your Savings

Spending without Feeling Guilty

Managing Money for Business & Pleasure

Preparing for Rain

Managing Joint Finances

Make your Dollars go Further

Make the most of your Money

Grandma's Jars

Find the Holes in your Leaky Bucket

Getting on top of Debt

Change your Money Habits

How and Where to Save

Your Leaky Money Bucket
Money always seems to disappear faster at holiday time.

Most people are short of money not because they buy big expensive things, but because they spend little bits here and there. This kind of spending is what I call ‘Leaky Bucket Syndrome’.

Imagine your bank account is a bucket into which your income is paid. Now imagine your bucket has many tiny holes in the bottom of it. Spending your money in lots of small amounts - $5 here, $20 there and so on – is like money leaking out of the holes in your money bucket. This kind of spending can add up to hundreds of dollars each pay day.

You can plug the holes in your leaky bucket by finding out where your money is going. This is a little tedious but necessary. Gather up your bank statements and credit card statements for at least the last three months. Make a list of headings of essential spending, for example rent or mortgage, insurance, rates, groceries, phone, power, medical expenses, petrol, car maintenance, etc and work out how much you have spent on each. Now add up how much you have spent on non-essential and personal items such as entertainment, gifts, haircuts, beauty treatment, clothes.

Compare your total spending to your income over the same period. You’ll probably find that there’s some money you can’t account for! The leaks in your money bucket will be
spending that you can’t account for or money you have spent on non-essential items. The best way to plug your leaks is to have a separate bank account into which you put money for spending on your non-essential items. By keeping within the limit of that account your spending will be easy to control and you should always have enough for your essential expenses.