How the numbers work: budgeting and prices

What YTD Shows

1. Current financial year: 2024/25 (started 1 April 2024)
2. Days elapsed: 183 days (1 April to 1 October)
3. Days in year: 365 days
4. Year progress: 183 ÷ 365 = 50.1%
5. YTD gross earnings: $32,000
6. Projected annual: $32,000 ÷ 50.1% = $63,873

Why YTD Matters

1. Mid-year YTD: $45,000
2. Projected annual: $90,000
3. Expected tax: ~$21,000
4. Can plan voluntary KiwiSaver or donations to manage tax

Calculating Annual Projection

1. Formula: YTD ÷ (Days Elapsed ÷ Days in Year)
2. Example: 1 July payslip
3. Financial year: 1 April 2024 to 31 March 2025
4. Days elapsed: 91 days (1 April to 1 July)
5. Days in year: 365
6. YTD gross: $18,000
7. Calculation: $18,000 ÷ (91 ÷ 365)
8. $18,000 ÷ 0.249 = $72,289

Projected annual: $72,289

Calculating Annual Projection

1. Current month: October (month 7 of financial year)
2. YTD: $35,000
3. Projected: ($35,000 ÷ 7) × 12

= $60,000 annual

Different Income Patterns

1. Salary: $60,000/year = $5,000/month
2. 6 months YTD: $30,000
3. Projected: $60,000 (matches salary)

Different Income Patterns

1. Base + commission varies monthly
2. 8 months YTD: $58,000
3. Projected: ($58,000 ÷ 8) × 12 = $87,000
4. But: Q4 often higher sales, adjust accordingly

Different Income Patterns

1. Started 1 August, now 1 December (4 months)
2. YTD: $20,000
3. Projected from start date: ($20,000 ÷ 4) × 12 = $60,000
4. But FY year projection: $20,000 ÷ (122 ÷ 365) = $59,836

Common YTD Uses

1. YTD: $35,000 (5 months)
2. Projected annual: $84,000
3. Provide: Latest payslip + YTD projection

Common YTD Uses

1. November YTD: $52,000
2. Projected: $75,000
3. Expected tax bracket: 33%
4. Can plan: Extra KiwiSaver, donations, rental losses

Common YTD Uses

1. Expected annual: $70,000
2. November YTD projection: $62,000
3. Shortfall: $8,000
4. Action: Reduce discretionary spending, no bonus this year

Example 1: Standard Salary Worker

1. FY: 2024/25 (1 April 2024 to 31 March 2025)
2. Days in FY: 365
3. Days elapsed (1 April to 15 Sept): 167 days
4. Percentage elapsed: 167 ÷ 365 = 45.8%

Example 1: Standard Salary Worker

1. YTD gross earnings: $28,750
2. Projected annual: $28,750 ÷ 0.458

= $62,773

Example 1: Standard Salary Worker

1. Actual salary: $62,000/year
2. Expected YTD: $62,000 × 0.458 = $28,396
3. Actual YTD: $28,750
4. Difference: $354 (likely overtime or bonus)

Example 2: Commission Sales Role

1. Days elapsed: 214 days (58.6% of year)
2. YTD gross: $65,000
3. Projected: $65,000 ÷ 0.586 = $110,922

Example 2: Commission Sales Role

1. Historical data: Q4 (Jan-Mar) = 35% of annual sales
2. Current YTD through Q1-Q3: $65,000
3. Expected Q4: $65,000 × (35% ÷ 65%) = $35,000
4. Adjusted projection: $65,000 + $35,000 = $100,000

Example 3: Mid-Year Job Change

1. Period: 153 days
2. Earnings: $22,000

Example 3: Mid-Year Job Change

1. Now: 1 December (3 months at new job)
2. Days in new job: 91 days
3. YTD at new job: $18,000

Example 3: Mid-Year Job Change

1. Total YTD: $22,000 + $18,000 = $40,000
2. Days elapsed in FY: 244 days (66.8%)
3. Simple projection: $40,000 ÷ 0.668 = $59,880

Example 3: Mid-Year Job Change

1. Old job: $22,000 (complete)
2. New job rate: $18,000 ÷ 91 days = $197.80/day
3. Remaining FY days: 121 days
4. Projected new job: $18,000 + (121 × $197.80) = $41,934

Total FY: $22,000 + $41,934 = $63,934

Example 4: Part-Year Worker

1. YTD: $16,000
2. Days worked: 122 days
3. Days in FY: 365
4. FY projection: $16,000 ÷ (122 ÷ 365) = $47,869

Example 4: Part-Year Worker

1. Actual FY earnings will be: ($16,000 ÷ 4) × 7 = $28,000
2. Full-year equivalent: ($16,000 ÷ 4) × 12 = $48,000

Example 5: Salary Increase Mid-Year

1. Old salary: $55,000/year
2. 6 months earned: $27,500

Example 5: Salary Increase Mid-Year

1. New salary: $62,000/year
2. 6 months to earn: $31,000

Example 5: Salary Increase Mid-Year

1. April-Sept: $27,500
2. Oct-March: $31,000

FY total: $58,500

Example 5: Salary Increase Mid-Year

1. April-Sept (6 months old rate): $27,500
2. Oct-Dec (3 months new rate): $15,500
3. YTD: $43,000
4. Simple projection: $43,000 ÷ 0.668 = $64,371 (inaccurate!)
5. Accurate: $43,000 + 3 months remaining at new rate = $58,500

Leap Year Adjustment

1. Days in FY: 366 (leap year)
2. 1 January 2024 (9 months, 275 days elapsed)
3. YTD: $52,000
4. Projection: $52,000 ÷ (275 ÷ 366)

= $69,167

🌍 Real-World YTD Scenarios

1. New job start: 1 June 2024
2. Current date: 15 November 2024
3. Time in role: 5.5 months
4. YTD (from 1 April): $48,000

🌍 Real-World YTD Scenarios

1. Days in new job: 167 days (1 June to 15 Nov)
2. New job YTD: $42,000 (extract from total YTD)
3. Daily rate: $42,000 ÷ 167 = $251.50
4. Annual projection: $251.50 × 365 = $91,798

🌍 Real-World YTD Scenarios

1. Base salary: $50,000
2. Target commission: $30,000
3. OTE (On-Target Earnings): $80,000

🌍 Real-World YTD Scenarios

1. 6 months elapsed (50% of year)
2. YTD total: $38,000
3. YTD base: $25,000
4. YTD commission: $13,000

🌍 Real-World YTD Scenarios

1. On-track commission: $13,000 × 2 = $26,000
2. Target commission: $30,000
3. Gap: $4,000 (13% behind target)
4. Action: Increase activity in Q3/Q4 to close gap

🌍 Real-World YTD Scenarios

1. Employment YTD: $68,000
2. Projected annual salary: $82,000
3. Rental income to date: $15,000
4. Rental expenses to date: $8,000
5. Net rental: $7,000

1. Salary: $82,000
2. Rental net (projected): $10,000
3. Total taxable: $92,000
4. Tax bracket: 33%

1. Increase KiwiSaver to 8% (extra $3,280/year)
2. Make $2,000 charitable donation
3. Both reduce taxable income and provide tax credits

1. Finished: 31 January 2025
2. YTD to redundancy: $55,000
3. Redundancy payment: $25,000

1. Redundancy first $29,560: Tax-free
2. Taxable redundancy: $0 (under threshold)
3. FY income: $55,000 + $0 = $55,000
4. Expected tax: $9,520

1. Cash available: $25,000 (tax-free redundancy)
2. Months to find new job: 2-3 months budget
3. Monthly expenses: $4,500
4. Runway: 5.5 months covered

Unit Pricing: Your Most Powerful Tool

1. Brand A: $4.99 for 400g = $1.25/100g
2. Brand B: $6.99 for 750g = $0.93/100g
3. Brand B is 26% cheaper per gram despite higher sticker price

Loyalty Programme Stacking

1. Weekly spend: $300
2. Everyday Rewards: 0.75% back = $2.25
3. Credit card cashback (1%): $3.00
4. Total return: $5.25/week = $273/year
5. Effective discount: 1.75%

Multi-Buy and "Volume" Traps

1. Offer: "Buy 3 for $15" (implied $5 each)
2. Competitor: $4 each
3. Buy 3 at offer: $15. Buy 3 at competitor: $12
4. Offer is $3 more expensive than elsewhere
5. The "offer" anchors you to that store's inflated base rate

A Typical Family's Annual Savings Potential

1. Average NZ family weekly grocery spend: $250 to $350
2. Annual spend: $13,000 to $18,000
3. Switching premium to generic on 40% of items: saves about 15% of spend
4. Switching from New World to Pak'nSave: saves 15-20%
5. Avoiding multi-buy traps: saves 2-5%
6. Loyalty programme stacking: adds 1%
7. Combined potential savings: $2,000 to $4,500/year

Example 1: Unit Price Shock

1. Option A: 500ml bottle $8.99 = $1.80/100ml
2. Option B: 1L bottle $15.99 = $1.60/100ml
3. Option C: 2L tin $18.99 = $0.95/100ml
4. Option C is 47% cheaper per unit than Option A
5. Bigger pack saves $85 per 10L of oil consumed

Example 2: Fake "Special" Detection

1. Checked price history app: same item has been $7.99 most weeks for 8 months
2. The "regular" $12.99 price was shown only 2-3 weeks all year
3. "Save $5" is misleading - the normal price IS $7.99
4. Compare against generic equivalent: $4.99
5. Generic is the real "special"

Example 3: Pak'nSave vs New World Same Basket

1. New World total: $347.80
2. Pak'nSave total: $289.50
3. Difference per week: $58.30 (17% cheaper)
4. Annual difference: $3,031
5. Pak'nSave has no loyalty points; New World gives 1%: $35/year
6. Net Pak'nSave savings: $2,996/year

Example 4: Multi-Buy Math

1. Single box at Woolworths: $7.50
2. 3 boxes at offer: $18 ($6 each, 20% off singles)
3. BUT single box at Pak'nSave: $5.50
4. 3 boxes at Pak'nSave: $16.50
5. The "offer" at Woolworths is still $1.50 more expensive than Pak'nSave's regular price

Example 5: Generic Swap Test

1. Before: 20 items at average $6.50 = $130/week
2. After: 20 items at average $4.00 = $80/week
3. Weekly saving: $50
4. Annual saving: $2,600
5. Of 20 items, 17 were "same or better" on generic
6. 3 items returned to premium
7. Adjusted saving: about $2,200/year

Real-World Story: The Accidental Bulk Buy

1. Paid: $21 for 12 punnets (effective $1.75 each)
2. Actually consumed: 7 punnets = $3/punnet effective
3. Normal price: $3.49/punnet at Pak'nSave
4. "Deal" saved: only $0.49 per punnet actually eaten
5. Factor in 30 minutes freezing effort: negative value

Real-World Story: The End-of-Aisle Premium

1. End-of-aisle price was HIGHER than shelf price
2. "Special" signage encouraged trust without comparison
3. Positioning did the heavy lifting
4. Dan walked 30m, saved $1.50 that visit
5. Going to Pak'nSave: saved $6 per 12-pack

Real-World Story: The Loyalty Obsession Cost

1. Same basket at Pak'nSave: would have cost $13,000
2. Actual spend at Woolworths: $15,600
3. Cost of loyalty: $2,600
4. Minus $150 in rewards: net cost of "loyalty" $2,450
5. She paid $2,450 to feel like she was saving $150

Real-World Story: The Generic Revelation

1. Weekly grocery before: $340
2. Weekly grocery after 27 generic swaps: $265
3. Weekly saving: $75
4. Annual saving: $3,900
5. That's a week's holiday for a NZ family

Prompt Payment Discounts

1. Headline rate: $0.30/kWh + $1.50/day fixed
2. 900 kWh/month usage: 900 × $0.30 = $270
3. Fixed charge: 30 days × $1.50 = $45
4. Subtotal: $315
5. With 20% PPD (paid on time): $252
6. Annual saving just from PPD: $756

Phone Financing vs Buying Outright

1. iPhone 16 Pro $2,199 RRP
2. Option A - buy outright: $2,199 upfront + $45/month SIM-only plan
3. Option B - 24-month contract: $85/month × 24 = $2,040 + "free" phone
4. Option A total over 24 months: $2,199 + $1,080 = $3,279
5. Option B total over 24 months: $2,040
6. But Option B locks you in; Option A keeps flexibility

Bundle Discounts: Good or Bad?

1. Bundle: Power + Broadband at $330/month total (with 10% discount)
2. Standalone best deals: Power $220 + Broadband $85 = $305
3. Bundle costs $25/month MORE than best standalone split
4. Bundle "discount" disguises an inflated base price

Example 1: Choosing Between Low User and Standard

1. Low User plan: $0.45/kWh + $0.40/day fixed
2. Variable: 5,200 × $0.45 = $2,340
3. Fixed: 365 × $0.40 = $146
4. Total Low User: $2,486
5. Standard plan: $0.32/kWh + $2.00/day fixed
6. Variable: 5,200 × $0.32 = $1,664
7. Fixed: 365 × $2.00 = $730
8. Total Standard: $2,394
9. Standard saves $92/year despite low usage

Example 2: Prompt Payment Discount Math

1. Pre-discount annual: $350 × 12 = $4,200
2. With 18% PPD: $287/month = $3,444/year
3. Savings from just paying on time: $756/year
4. Direct debit ensures this: zero effort

Example 3: Broadband Contract Expiry

1. Months 1-12: $75/month = $900
2. Months 13-24 if ignored: $90 × 12 = $1,080
3. Extra cost of ignoring: $180/year
4. 5-minute phone call to renegotiate: often $75 retention
5. Switch to new 12-month deal: possible $65/month

Example 4: Buying Phone Outright vs Contract

1. Option A: Buy phone $1,899 + SIM-only $40/month × 24 = $960
2. Option A total: $2,859
3. Option B: Bundle $80/month × 24 = $1,920 (phone "included")
4. Option B total: $1,920
5. Option B saves $939 BUT locks you in for 2 years
6. If leave early: exit fee on remaining phone balance
7. In this example: bundle wins IF certain you'll stay

Example 5: Bundle vs Standalone Annual Cost

1. Bundle all three with Provider X: $385/month = $4,620/year
2. Best individual: Power $210, Broadband $75, Mobile $40 = $325/month
3. Best individual annual: $3,900
4. Bundle costs $720/year MORE than splitting
5. Convenience of one bill: not worth $720 for most families

Real-World Story: The $1,800 Switch

1. Power switched to lower retailer: -$55/month
2. Broadband switched to new 12-month fibre: -$25/month
3. Mobile consolidated to family plan: -$35/month
4. New monthly total: $450/month = $5,400/year
5. Annual savings: $1,380

Real-World Story: The Auto-Renew Trap

1. Phoned retention team
2. Asked "I'm going to switch - can you match the deal I signed up at?"
3. Retention offered new 12-month deal at $72/month
4. Saved $17/month = $204/year going forward
5. 5-minute phone call

Real-World Story: The Bundle That Cost More

1. Bundle: $3,900/year
2. Separate: $3,360/year
3. Bundle costs $540 MORE per year
4. The "10% discount" is off an inflated base rate

Real-World Story: The Roaming Bill Shock

1. Base plan: $45
2. Roaming days: 5 × $10 = $50
3. Data overages: about $280 of 140MB over
4. Total bill: $375 vs normal $45
5. Unexpected extra: $330 for 5 days of normal phone use

Decide the Total First

1. Agree a total you can afford without debt
2. Set your guest count, the biggest cost driver
3. Allocate the budget across the main categories
4. Keep a contingency for the inevitable extras

Save Ahead, Do Not Borrow

1. Open a dedicated wedding savings account
2. Automate regular contributions toward the budget
3. Pay deposits and bills from that fund
4. Aim to fund the day without taking on debt

A Simple Approach

1. 1. Agree an affordable total before booking anything
2. 2. Set the guest count, your biggest cost lever
3. 3. Spend on your few priorities, keep the rest modest
4. 4. Track every booking against the budget
5. 5. Fund it from savings and keep a contingency

Build the List

1. List every subscription and its price
2. Note whether it bills weekly, monthly, or yearly
3. Convert each to a monthly cost
4. Add them up for a true monthly total