Cooking The Books

Each week the NZ Herald and Newstalk ZB's Cooking the Books podcast tackles a different money problem. Today, it's the good and bad of buying a house with a friend. Hosted by Frances Cook.Money can be particularly difficult when you're flying solo. You don't have the luxury of pooling resources with someone else, buying the same thing for a fraction of the price. Or don't you? Particularly in the house buying world, some people are now teaming up with friends. It's a smart way to get around steep prices - particularly when most houses have more than one bedroom anyway, and you were probably already thinking about a flatmate in order to keep the bills down. There's just one issue; buying a house is a major commitment, even for those in a romantic relationship. For a friendship you want to make sure you do this right, as there's no standard divorce law to help you out if things go sour. That means there are a couple of legal considerations you need to be aware of first. For the latest Cooking the Books podcast

Each week the NZ Herald and Newstalk ZB's Cooking the Books podcast tackles a different money problem. Today, it's the evidence behind the growing trend in passive investing. Hosted by Frances Cook.The digital revolution is notorious for making things cheaper and easier, and it's doing the same for our investing. Passive investing and particularly index funds have been going for a few decades, but are building up steam with every tech advance. The idea is that rather than paying a person to pick and choose investments for you, you put your money into a fund that automatically invests your cash across a wide number of companies. It's set and forget, and no need to pay someone's wages, so is the ultimate in cheap and easy. There's also a growing number of apps and websites that let you set this up, without needing to go through a broker. So it's a double bargain. The problem is that sometimes we don't trust these technological changes. Cheap and easy surely has to come with a downside, right? Not necessarily. F

Each week the NZ Herald and Newstalk ZB's Cooking the Books podcast tackles a different money problem. Today, it's why ignoring commercial property could be a missed opportunity. Hosted by Frances Cook.Getting a foot on the property ladder is part of the kiwi dream. Many regular people plan to increase their wealth by first buying their own home, and then maybe a rental or two, to invest in their future. But the residential rental market is flooded with people with exactly this same idea, and that's pushing prices out of reach for many people. There's another part of the market that doesn't get anywhere near the same attention, and could work for some situations; commercial property.As in, shops, offices, maybe even some warehouses. When you zig while others are zagging, you can find more opportunities. But there are a few things to know first. For the latest Cooking the Books podcast I talked to Kaison Chang, from Baker Tilly Staples Rodway. We discussed the pros and cons of commercial property, what you nee

Each week the NZ Herald and Newstalk ZB's Cooking the Books podcast tackles a different money problem. Today, it's why a budget could be the key to feeling less deprived, not more. Hosted by Frances Cook.If someone tells you they're trying to stick to a budget, your first response is probably... a grimace. That's because budgeting has a terrible image problem, where we think of it as depriving ourselves, and never doing anything fun. This is actually backwards, as without a budget we can easily get caught by mindless spending, which soaks up our money and means we can't afford the other things we really want to do. So how do you do it, so that you get the good stuff without missing out the rest of life? For the latest Cooking the Books podcast I talked to PocketSmith CEO Jason Leong. We discussed the different ways of budgeting, how to make room for the things you love, and whether open banking could help. If you have a question about this podcast, or question you'd like answered in the next one, come and tal

Each week the NZ Herald and Newstalk ZB's Cooking the Books podcast tackles a different money problem. Today, it's why building could be what helps those with a small house-buying budget. Hosted by Frances Cook.Houses are now so expensive, first home buyers are considering anything and everything to tip the scales in their favour. One of the options you can consider is building. There's a financial incentive, for starters. The KiwiSaver HomeStart grant doubles if you're planning to build. It's $5,000 for buying an existing home, and $10,000 if you're building a new one. You can also have a bit more control over what type of house you buy. Maybe you can keep costs low by going for a smaller house on a smaller parcel of land, instead of the standard three bedroom Kiwi home. But the issue is that as a first home buyer, by definition, you're new at this. Building can be complicated, and there are more ways it can go wrong. For the latest Cooking the Books podcast I talked to Kevin Atkinson from Generation Homes.

Each week the NZ Herald and Newstalk ZB's Cooking the Books podcast tackles a different money problem. Today, it's how a rule of thumb can give guidance on your personal investing strategy. Hosted by Frances Cook.Time is everything when you're investing. Long-time podcast listeners will have heard it here before - the longer you have, the more that risky investments will be right for you, like shares or property. If you have less time, a lower risk investment like bonds or term deposits are usually the suggestion. Well if you're looking for more detail on this idea, there's a rule of thumb that some people like to use. It's the rule of 100, or, 100 minus age. It means that if you take 100, subtract your age, then what's left is the percentage of your investments that should be higher risk, because you have the time to build your wealth like that. So for me, at 31, the suggestion is 69 per cent of my investments going into higher risk options. But like any rule of thumb, there are exceptions, there's fine prin

Each week the NZ Herald and Newstalk ZB's Cooking the Books podcast tackles a different money problem. Today, it's the upcoming KiwiSaver changes you can have a say in. Hosted by Frances Cook.A milestone of looking after your money in New Zealand is to buy a home, and pay it off. That's because our system, and especially the pension, is designed with home ownership in mind. Pension payments depend on what you're entitled to, but if you're single you get about $20,000 a year, and if you're in a couple, you get about $30,000 a year. That doesn't leave much room for paying off a mortgage, or even continuing to rent. That's why it's worrying that stats from the Commission for Financial Capability show that the numbers of people going into retirement still paying a mortgage or rent, are increasing. But there is a suggestion on how to fix this. KiwiSaver is often the first stop for those who want to save for a house, as the candy coated retirement scheme seriously boosts your savings. There are currently strict rul

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's how just talking about money could change things. Hosted by Frances Cook.If you would rather talk about literally anything other than money, you're not alone. It turns out, New Zealanders would rather talk about alcohol, politics, or drugs, than what they're doing with their KiwiSaver or if they have a savings account. Now this might be understandable with co-workers or people we're only loosely friends with. But shockingly, many of us aren't even talking to our significant other about what we're doing with money. According to a survey from the Commission for Financial Capability, 58 per cent of us don't talk to our partner about how much we earn. We're even quieter when it comes to retirement planning. Even for those aged 55 to 64, only 52 per cent of us have talked to our partner about what the plan is for our golden years. There can be good reasons for keeping quiet, but these numbers are seri

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's the newest episode of our OneRoof-partnered series, on how a few tweaks to your house could save you big bucks. Hosted by Frances Cook.Just about everyone wants to cut back on their boring bills, so they can have more money to spend on the fun things in life. The biggest expenses for the average person are housing, transport and food, with housing easily taking out first place. The best thing about this, is if you cut your bills there, you won't have to think about it again. You simply create a smarter, cheaper system once, then carry on with your new adapted life. So the idea of setting up a house that pays its own bills has always appealed to me. Why pay for power when I could harvest it myself from the sun? Why turn on the heater, when I could live in a house that's built to automatically circulate heat? What's greener and better for the planet is often also better for our wallets, so it's a w

Each week the NZ Herald and Newstalk ZB's Cooking the Books podcast tackles a different money problem. Today, it's how to look after your KiwiSaver now that everyone's talking about possible recession. Hosted by Frances Cook.Those who like to keep a close eye on their KiwiSaver have probably been having heart palpitations lately, with balances going here, there and everywhere. What's behind it is the sharemarket, as almost all KiwiSaver funds have some amount in shares. This is great for growing your retirement nest egg in the long term, but it does mean it can go sharply up or down in the short term. So just last month when the US-China trade war escalated, you might have seen your KiwiSaver take a tumble. Then this month, the New Zealand sharemarket was giving with one hand and taking with the other. Dividend stocks did well, while the traditional growth stocks didn't. So it really depended where you were invested, and most KiwiSavers don't have that level of control. It can all sound complicated, and frank

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's the newest episode of our OneRoof-partnered series, on how the land title could be the most important thing you're ignoring. Hosted by Frances Cook.People often say: you don't buy a house, you buy land. It's true, and not just in terms of the all-important location that that saying tends to make people think of. The title of the land under your feet is a crucial issue that some buyers can get wrong, only to have it cost them dearly later. You might have heard us talk on this podcast before about cross lease, freehold and leasehold. Well now's the time to really dive into that subject, because as with everything, you can actually do any of them successfully, or unsuccessfully. You just need to know the lay of the land first. For the latest Cooking the Books podcast, I talked to Joanna Pidgeon from Pidgeon law. We discussed which types of land titles you're likely to come across, what types of prob

Each week the NZ Herald and Newstalk ZB's Cooking the Books podcast tackles a different money problem. Today, it's how to give your business the best chance of turning a profit. Hosted by Frances Cook.People go into business to make money – that's why it's a business idea, and not a charity. Some people become very wealthy because of their entrepreneurial efforts, earning far more than they would have if they'd stayed in a salaried role. But it's a risky strategy, as getting profitable is really hard work, especially in those early years. You don't have control over everything, and sometimes what seems like a great idea ends up tanking, for reasons you can't quite work out. But you can tip the odds of success in your favour, and avoid becoming a cautionary tale if you design your business carefully from the beginning. For the latest Cooking the Books podcast I talked to Jo-Anne Randall from Baker Tilly Staples Rodway.We discussed what you need to know before starting up the business, how to plan for profits,

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's the newest episode of our OneRoof-partnered series, on what to know before considering a do-up. Hosted by Frances Cook.New Zealanders are infamous for loving a bit of DIY. But there are also the stories many of us have of trying to fix something ourselves, wrecking it, and having to spend more to get a professional to come and save the situation. So when we're talking about something as expensive as a house, what's the line? If you go for the old "worst house on the street" advice, do you actually have the understanding of what you're signing up for, and the full amount it's likely to cost to fix? Does it just need some paint to freshen it up, or are we talking re-piling, or plumbing work? And if you're willing to build up the knowledge, and put in the time to make sure you're doing the do-up right – would you maybe be better off building a whole new house instead? For the latest episode of Cooki

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's how to enjoy a holiday without ruining your finances. Hosted by Frances Cook.Getting your money life sorted is important, but not at the expense of your actual life. However, if you do it right, you can actually have both. Travel is something that broadens your mind, helps you understand your fellow humans better, and gives you a better appreciation for your own place in the world. Frankly, in our current fragmented times, it's probably needed for more of us. There are ways to do it without breaking the budget, whatever type of budget you've got. In fact, travelling on a budget can be even better for helping you get under the skin of a new place and avoid the tourist traps. For the latest Cooking the Books I talked to Trip Notes podcast co-host, and Herald deputy travel editor, Stephanie Holmes. We discussed what to know before you book, how to have fun on a budget once you're there, and why trav

The OneRoof property panel makes a sneak appearance on the Cooking the Books podcast. Hosted by Frances Cook, with panellists OneRoof editor Owen Vaughan, Lesley Harris from the First Home Buyers Club, and James Wilson from Valocity. They discuss where the market is running hot or not, whether houses are becoming "affordable", and what all this means for first home buyers.See omnystudio.com/listener for privacy information.

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's the newest episode of our OneRoof-partnered series, on how to avoid the specific pitfalls that come with each property type. Hosted by Frances Cook.When people are trying to get onto the property ladder, they're often told to think outside the box.Sure, you might have grown up in a standard three-bedroom house surrounded by garden, but that's unlikely to be what you can afford when you're trying to get into that elusive first home. Or frankly maybe you just don't want that, even if you have the budget to consider it. Maybe the allure of inner-city living has you thinking about an apartment. Or keeping your weekends free for fun rather than mowing lawns has you thinking about a townhouse. There are all sorts of different property types out there, each with their own price point, and lifestyle. But before you decide which one you want, you need to know some serious pros and cons for each. For the l

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's the techniques used by ordinary people to pay off big debt. Hosted by Frances Cook.Most of us know that debt isn't good, but it's shocking how normalised it has become to use it anyway. Any time you use debt, you're paying extra money to get the same thing, because of the pesky interest rates you'll be charged. It can quickly spiral out of control, with some people building up tens of thousands on the credit card. Meanwhile, house prices have gone so high, you can build up a mortgage so big, it feels like paying it off is the same as summiting Everest. Amongst this though, there's a backlash. The debt-free movement is a group of people who want to get rid of every dollar of debt in the shortest time possible. Even if that debt is hundreds of thousands of dollars. They've had enough. They're willing to sell things, take on extra work, and put every spare dollar into that debt to get it gone. Happ

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's the newest episode of our OneRoof-partnered series, on the techniques that will pay off your mortgage fastest. Hosted by Frances Cook.Housing affordability is a real, genuine problem for people at the moment. Many people would like to buy a house, but the prices have gone so high, it feels like silly money. When we're talking such big numbers, it's hard for our brains to keep up, and suddenly another $50,000, $100,000, hey what's the big deal when you're in a tonne of debt already? Except it is a big deal, as if you get it wrong, the bank will take it all off you, and you'll be worse off than you started. But there are ways to set your budget, figure out what sort of house you can afford, and then nail that mortgage as quickly as possible. For the latest Cooking the Books podcast I talked to Rupert Gough from Mortgage Lab, and AUT associate professor Aaron Gilbert. We discussed when to stretch th

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's how to master interest rates to better look after your money. Hosted by Frances Cook.Interest rates are one of those sneaky things that sound boring, but actually impact every single decision you make with your money. They can make it harder or easier for you to buy a house, better or worse for you to save your money, harder or easier for you to get out of debt, and also push you towards different types of investments. They change everything with money, and so it's a little concerning that interest rates are acting so oddly right now. They're at historic lows, and word on the street is that they could even go lower. Now before you start stuffing your money under the mattress, as always, the big thing is preparation.There are good things about this, for sure, but because this is such an unusual situation, there are lots of fish hooks that can catch you out if you're not prepared ahead of time. For

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's the newest episode of our OneRoof-partnered series, looking at how you can use location differently to get the house that works with your lifestyle. Hosted by Frances Cook.A house is a weird blend of a massive financial decision, and a massive lifestyle decision. So no wonder people get stressed when they're trying to find the right place for them. There are all sorts of things to weigh up to know if this is the right house for you and your circumstances. Do you want kids? Do you want to be close to your work, or do you want more space? Do you dream of planting a vege garden, or can you think of nothing worse than spending the weekend mowing lawns? If you weigh this up in the right way, the right house can both set you up financially, and increase your happiness in your day-to-day life. If it goes wrong, it can get ugly fast. For the latest Cooking the Books podcast, I talked to Bindi Norwell fr