Cooking The Books

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's why your history with debt matters, even if you think you've got it under control. Hosted by Frances Cook.Debt can be the scary bogeyman under the bed. We all know debt isn't a good thing, but when life gets in the way, it's an easy shortcut to fixing certain problems. But if that debt starts to spiral out of control, the response from many of us is to ignore it. Pretend the mounting credit card bill isn't a problem, that the car isn't in danger of being repossessed, that we're not actually losing sleep at all. Even if you don't have a problem now, you should still put a debt plan in place. It's much easier to think about an action plan before problems crop up, and emotions get in the way. Once we face it, and figure out what the situation is, there are ways to put the debt bogeyman back in his place. The first step is figuring out how bad things have become, or could get, and that means checking

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's the third episode of our OneRoof-partnered series, looking at the tricks to negotiating a mortgage which could save you thousands. Hosted by Frances Cook.Saving up for a house is one thing, but then actually paying it off is entirely another. A mortgage interest rate may look small, with some rates currently under 4 per cent. That's an incredible deal, but there's a reason the banks are willing to give it to you. Over the course of a 30-year mortgage, that 4 per cent interest rate adds up several times over. In fact, by the time you take into account changes in interest rates over that time, the general rule of thumb is that you pay double for your house – once for the purchase price, and then the same amount again in interest payments to the bank. So you want to be smart about this from the beginning, because it means a difference of literally tens of thousands of dollars, maybe more. Happily th

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's the changes underway to help our kids learn crucial money lessons. Hosted by Frances Cook.I always invite you guys to send me your questions about money, and a really common one that I get is also a lovely selfless one. People want to know - how do I talk to my kids about money to set them up for a good life? There's a lot of pressure on parents in this area, because schools don't teach us about personal finance. Budgeting, goal setting, KiwiSaver, investing; it's all on you to figure out this important stuff by yourself. Except it's really important stuff, arguably more important than figuring out the angle of one corner of a triangle.Research from the Commission for Financial Capability also shows it's affecting schools kids; 73 per cent of high school graduates say they've learned little or nothing about money. Even worse, 82 per cent of school leavers say they wish they'd learned more, and fe

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's the second episode of our OneRoof-partnered series, looking at ways to save a deposit even when you're not rolling in it. Hosted by Frances Cook.Getting together a house deposit is arguably the hardest part of becoming a home owner. Depending on whose figures you use, and where you are in the country, renting can actually be slightly more expensive than owning a home. That means when you're renting and trying to save, it's an uphill battle. It's not impossible though, and the payoff is worth it once you get there. You just need the inside word to reduce the pain of saving up that deposit. Peter Cordtz works on just that, at the Commission for Financial Capability. He came on to the latest Cooking the Books podcast, where we discussed the dropping rates of home ownership, how KiwiSaver can boost a deposit, and helpful courses from the Commission. If you have a question about this podcast, or quest

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's whether deliberately shrinking our economy could fix some of society's problems. Hosted by Frances Cook.The idea that growth is good is a core belief in our financial system.A growing economy means jobs, profits, and food on the table. But there's an increasing number of people questioning how long this can last for. We do have just one planet, with a certain number of resources. So surely we can only grow for so long before those run out? Others link endless growth to the rise of workaholism, with people working longer hours, sometimes in multiple jobs, just to keep up. You can see this strain of thought in the Government's latest Wellbeing Budget, where they said we needed to look past GDP, to work on the things that actually make a country happier and better off overall. But at the more extreme end of this, some people talk about degrowth; intentionally shrinking the economy to address these i

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's the start of a partnership with OneRoof to walk you through the steps of buying a house. Episode one is rent vs buy. Hosted by Frances Cook.Deciding you want to own your first home is a huge decision. It has a big impact, not only on your finances but also your lifestyle. So before you even start on the realities of pulling together a deposit or looking at houses, you need to figure out if this is the right time for you. Do you still need the flexibility of renting, where you can leave relatively easily? Or are you craving the stability of a house, where you have more control over what you do to the property, and how long you stay there? Will it be better for your finances if you rent long term, and try to put the money into shares instead? Or do you want to work on paying down a home you own, so you can eventually live in it for free? We're starting a project together with OneRoof, to walk you t

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's the KiwiSaver mistakes you can fix in minutes. Hosted by Frances Cook.What you don't know can definitely hurt you. Particularly when it comes to your money. Almost all of us have a KiwiSaver, which could be the biggest nest egg for our future. That's why it's such a problem that some of those KiwiSaver funds are hugely underperforming. You could be stashing away the exact same money as your friend, and end up with far less when you retire. When just a few tweaks to how you run your KiwiSaver could give the average person $135,000 more when they retire. Part of the problem is fees, which if you're not careful can take huge bites out of your money. But the other issue is simply understanding what on earth your KiwiSaver provider is up to, and whether you're okay with that. Luckily there's something you can do that only takes 10 minutes, and is getting even easier to do from this year. For the lat

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's whether there's an ideal way to allocate pots of money. Hosted by Frances Cook.People seem to love the idea that you can set up a few hard and fast rules for your money, and if you just follow that diligently, you'll be safe. So you see rules pop up like the 50/30/20 rule, the so-called "golden ratio" for your money. The idea is that out of the money you earn, 50 per cent should go towards life's necessities, 30 per cent goes on discretionary spending, and 20 per cent goes towards savings or investments. The problem is I'm not someone who likes rules very much. They can come across judgmental, when we all have very different circumstances. So for the latest podcast, I called up Dr Ayesha Scott from AUT. We discussed whether there's any truth to this "rule", the exceptions to it, and how to apply it to your life in a smarter way. If you have a question about this podcast, or question you'd like an

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's the pitfalls to avoid when launching a side hustle. Hosted by Frances Cook.A side hustle is one of those things that sounds great in theory, and can be difficult in practice.Who doesn't love the idea of starting their own business, getting some extra cash coming in the door, and still keeping the safety of the day job?Unfortunately it doesn't usually work like that.There's picking the right business where you'll actually have customers, then keeping that business alive, and dealing with extra issues like tax.It's not easy, but it is possible, as you'll find when you talk to people getting it done. For the latest Cooking the Books podcast I talked to Boltra founder Ella Keegan. We discussed how she combines a side hustle with a full time job, what problems she ran into starting her business, and how she found solutions to those problems. If you have a question about this podcast, or question you'd

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, why affordable homes are bucking the trend in a property market that's going flat. Hosted by Frances Cook.The property market seems to finally be slowing down. Fewer listings are coming onto the market, those that are there are staying for longer, and in Auckland at least, the latest QV figures show prices have fallen 1.5 per cent. It's far from a crash, but levelling off and some breathing space will be welcome news to many people at this point. There's one very important exception though, and that's the smaller, cheaper end of the market. OneRoof data shows that most of the activity is for houses under $1 million. If a house is under $500,000 then QV says there's actually a shortage, with more buyers than sellers. Anecdotally, real estate agents say the places getting the most interest are those with one or two bedrooms. For the latest Cooking the Books I talked to OneRoof property commentator Ashle

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's how working together can stretch the budget further. Hosted by Frances Cook.Make do and mend; it's an old wartime slogan that more of us could pay attention to today, as we try to stay on budget. It's clearly a better budget idea to DIY, or fix things that break instead of buying a replacement. But whether you want to blame a changing society, or things like home economics classes being cut at school, there's a clear trend. Fewer people today are in the habit of picking up some tools and getting to work themselves. It's a downward cycle, because as fewer of us fix things, then fewer of us have the tools on hand to fix things. And those tools can be expensive, so rather than fork out when we need them, it can seem easier to buy a replacement or pay someone to fix it for you. Well Auckland's Library of Tools has a solution, to help us be more self-sufficient on a budget. For the latest podcast I ta

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's what not to do in the sharemarket. Hosted by Frances Cook.Shares are scary to some people, when they don't need to be.Investing in them is actually quite simple, if you follow a few rules.But while we've talked about what you should do in previous episodes, there's a less positive side, where you also need to know what not do.One of the reasons the infamous 1987 sharemarket crash was so bad in New Zealand was because people broke this simple rule.You don't use debt to invest in the sharemarket.For the latest podcast I talked to Mark Fowler from Hobson Wealth.We discussed what made the 1987 crash so bad, what makes debt a bad idea for investments, and how housing is different.For the interview, listen to the podcast.If you have a question about this podcast, or an idea for the next one, come talk to me about it. I'm on Facebook here https://www.facebook.com/FrancesCookJournalist/ Instagram here ht

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's the triangle technique that can help you manage a small windfall. Hosted by Frances Cook.Saving money regularly is a crucial part of building your wealth, yet is often forgotten. But it doesn’t have to be that way. Little windfalls in life can be huge over your lifetime. If you get a little pay rise of $20 a week, you could get used to going out for brunch more often. Before you know it, it’s part of your routine, and hard to give up. Or, you could save it straight away, and watch those benefits build up. An emergency savings account, investing in the sharemarket, knocking extra off the mortgage. That $20 could be more powerful than you realise. For the latest Cooking the Books podcast I talked to Patrick Fogarty from The Private Office. We discussed how to balance saving a windfall with enjoying it, where to put it beyond a savings account, and whether the size of the windfall makes a difference

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's how to handle the changes to KiwiSaver, and what else might be waiting in the wings. Hosted by Frances Cook.It’s the time of year when law changes come into force, so you might have seen articles about the minimum wage changing, or tax rates. All of that is very important, but what’s gone under the radar is some changes to your KiwiSaver, that are actually big news. You now have more control over how much you put in, the rules for those over 60 have totally changed, and if you want to stop paying into KiwiSaver, you’ll have to jump through more hoops. These are pretty significant changes, but making the most of them so you get the most money in your back pocket, will depend on your personal situation. There’s also the possibility of more changes in the future. For the latest Cooking the Books podcast I talked to Sorted's Tom Hartmann about how each of us can take advantage of the new situation, a

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's the latest tech start-up aiming to make life easier for NZ investors. Hosted by Frances Cook.People often think of investing in shares as something done by people who are already rich, who are able to throw around big sums of money with abandon.That’s because, for a while there, it was true.But it shouldn’t be, because shares are a great way to create wealth in the first place. If only you can find your way in.That’s why it’s so exciting that in the last few years, we’ve seen the tech sector step up.New companies have popped up, promising that for the price of a cup of coffee, you can start investing.One of those is Hatch, which is promising access to some of the biggest companies in the world, that previously were too expensive for any of us.For the latest Cooking the Books podcast I talked to Kristen Lunman and Natalie Ferguson from Hatch. We discussed what's traditionally held people back from

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's why pay rates are staying stubbornly low. Hosted by Frances Cook.Workers should be thrilled right now. Unemployment is low and companies are crying out for skilled people to hire.This is usually the dream situation for the employee, where you have the leverage over your boss, because you’ll be hard to replace.Usually, this is when wages start going up.So it’s a little bit strange that wages are staying stubbornly low, across the board.The latest data from Westpac and McDermott Miller backs this up.Their Employment Confidence Index has fallen, with employees worried about lower job opportunities.One of the biggest areas employees were worried about is pay, with fewer people getting a pay rise in the last year.Even worse, the number of people expecting a raise in the coming year was at a record low.For the latest Cooking the Books I talked to Westpac senior economist Michael Gordon. We talked abou

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's how to tackle financial infidelity. Hosted by Frances Cook.Everyone has secrets, but there are some secrets that can do more harm than good, particularly in a long term relationship. Like if you impulse buy things, then hide the receipt from your significant other. Or if you squirrel money away into a bank account the other person has no idea about. These things can be the subject of jokes, but it’s actually no laughing matter. Because if you’re not careful, it can spiral into a serious problem where you don’t have enough money to pay the bills, or you create a major trust problem in your relationship. There’s even a name for it; financial infidelity. For the interview, listen to the podcast.If you have a question about this podcast, or an idea for the next one, come and talk to me about it. I'm on Facebook here https://www.facebook.com/FrancesCookJournalist/ Instagram here https://www.instagram.

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's whether voting with your wallet can push tech giants to change. Hosted by Frances Cook.People power has never been so needed, after a horrifying attack on New Zealand and our muslim community.Fifty people are dead, and many more injured, and everyone is asking how on earth this happened.The power of the community coming together has already been demonstrated in countless candlelight vigils across the country, showing that we will not be divided, and will stand together to protect those who need it.But what about some of the hard choices that will come next? Can people power help there too?There are serious questions to be asked about how the shooter was able to livestream 17 minutes of mass killing.More questions about how it was then spread across other platforms.What seems inescapable now is that radicalisation is happening in our midst, especially online.Social media companies are built to kee

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's what small business owners need to do differently for work-life balance, and retirement. Hosted by Frances Cook.A small business isn’t just a business. There’s a side that’s all about the financial realities, but there’s also a strong emotional side to things that we just can’t ignore. People often start their business in an area that they’re passionate about. But even if the choice is a bit more pragmatic, by the time you’ve spent years doing whatever it takes to stay afloat, you can bet that you’re emotionally invested in your business continuing. Of course, to come back to the financial side, you also need it to continue so that you can pay your bills, and put food on the table for your family. So retiring, or even just stepping back slightly, becomes trickier when you’re a small business owner. Xero let me take a look at their numbers, and they’ve found that one in five (21%) small business o

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's how the digital age is changing how we handle our money. Hosted by Frances Cook.The best thing about the digital era is how much information is at our fingertips.The worst thing about the digital era is there’s so much information, it can be hard to know where to start, and even harder to wade through it all.Well the personal finance world is starting to tackle this issue through digital innovations, and even augmented reality, machine learning, and artificial intelligence.Whether it’s answering your questions as if you were talking to a person, or helping you sift through the hundreds of options for your retirement fund, lines of code are having a massive impact on the ways we invest and learn about money.To fit in a lot on a big topic, today's Cooking the Books podcast interviews two people on the different approaches that can be taken. First up is Sorted's Tom Hartmann on the new Smart Investo