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 a capital gains tax on your KiwiSaver. Hosted by Frances Cook.If you heard howls of outrage and a collective stamping of feet coming from your computer last week, it's not a technical glitch. You were probably logged in to social media as the announcement was made that the Tax Working Group recommended the Government bring in a capital gains tax. Basically if you buy something, it increases in value, and then you sell it for a profit, you pay tax on part of that profit. What that means for property investors has been truly thrashed already, and it's safe to say many of them have made it known that they don't like the idea. But there were other parts of the report that have been missed, that are very important for the average New Zealander to know about. For instance, proposed changes to how you KiwiSaver is taxed. Almost all of us have a KiwiSaver fund, certainly more of us th

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Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's the tactics to use if you think you're underpaid. Hosted by Frances Cook.It’s a tough world out there trying to get a pay rise. Wages have been flat for a long time, and it only makes things worse if you’re already underpaid. Last year Harvard released research that debunked one of the biggest gender pay gap myths. Many people say women are paid less because they’re too timid, and don’t ask for a raise as often as men. Well, not true. It turns out, women ask for a raise just as often as men. But the women were successful 15 per cent of the time, while men were successful 20 per cent of the time. That’s a huge difference, and will really add up over your lifetime. Then only a few weeks ago, research from recruitment firm One Staff showed that female tradies in New Zealand were being paid 20 per cent less than the men they’re working alongside. That’s even worse than the average in New Zealand, alr

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's a new win for the passive investing fans. Hosted by Frances Cook.If you invest in shares, the later parts of last year probably weren't fun for you. To put it mildly, the markets were spooked by a combination of factors including the stand-off between China and the US, political uncertainty in Europe, and general worries for the global economy. The end result was a sea of red in the stock markets, with values going down further than they have in several years. Now, if you're investing for the long term, this isn't actually something to be too upset about, but I've covered that in previous episodes. It's still unnerving to see your investments going down, and if you weren't expecting it, it can hit you in the pocket. This is where active managers often claim they can save your bacon. Those clever guys say they'll manage your investments, read the financial tea leaves, and save you from the worst w

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's why a clean conscience could actually make you the most money. Hosted by Frances Cook.Nobody wants to be a bad person, but sometimes, life doesn’t make it easy for you to be a good person. So it is with money, where many have assumed for years that making the most money means getting your hands a little dirty. But is that actually true? Ethical investing is an area that’s starting to boom, with investors demanding it, and companies actively pursuing it. It extends to your KiwiSaver as well. There are now several options for those who want a good retirement with a clear conscience, and they boast a pretty good return for your money. But it’s not all sunshine and rainbows. Ethics and morals are deeply personal things, and everyone draws the line somewhere else. I talked to Sam Stubbs, managing director of Simplicity, for the latest Cooking the Books podcast. We discussed rising customer demand for

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's how to tackle investing at different life stages. Hosted by Frances Cook.Time is one of the biggest ingredients for investing success. I would even argue, it can be more important than money. If you take $20 and invest it in your twenties, it will do far more for you than $40 invested in your fifties. But time is powerful because it’s precious, and limited. And sometimes, you figure out where you need to be heading a little later in life. So if that’s you, and you’re getting more annoyed about people banging on about compound interest, and how the risky, high return investments are best when you’re young, then I hear you. Personally, I think it’s never too late. But time does change the rules, and you should know where to start.For the latest Cooking the Books podcast I talked to Sharesies co-founder Sonya Williams. We discussed how to approach different investing time horizons, what makes people

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's the various tactics to attack the food bill. Hosted by Frances Cook.If you want to cut back your spending, it makes sense to focus on the biggest core expenses. Food is undeniably one of those. If you’re ruled by your tastebuds like I sometimes am, it might even be your number one expense. Eating good food is one of the great joys in life, and nobody wants to give that up. But the average New Zealand family wastes $500 of food in a year, and because that’s an average, some of us waste far more. So there are savings to be made if you know the storage tricks, the seasonal tactics, and how to work with your family dynamics. I talked to Jenny Marshall from Love Food Hate Waste for the latest Cooking the Books. We discussed the biggest items that blow out the budget, and ways to spend less without feeling deprived. For the interview, listen to the podcast.If you have a question about this podcast, or

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's why you shouldn't be sucked in by budgeting's image problem. Hosted by Frances Cook.Budgeting has an image problem. Also, the sky is blue, the grass is green, and cats rule the internet. We all know budgeting sounds a bit boring, and for many people, it’s easy to ignore for that reason. But while people tend to get excited about buying a house, or investing in shares, creating a budget you can stick to is much more important. Anyone can run out of money if they don’t know how to run a budget. Why else do you think rappers or actors can end up in court, flat broke. You can spend any amount of money if you treat it as an endless resource. But budgeting doesn’t have to be boring, and it doesn’t have to mean endless spreadsheets. In fact, it can even include flamethrowers. For the latest podcast I talked to Tom Hartmann, personal finance blogger for the Commission for Financial Capability.We discusse

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's what you need to know for the year ahead. Hosted by Frances Cook.New year, new me, new money. The last few years have been unstable, to say the least. While this has resulted in more than a few politics arguments over the dinner table, it’s also thrown the business world for a loop. Don’t be fooled into thinking what happens in boardrooms or parliaments overseas has no impact on you. It’s all crucial for how much you’re paid, what happens to your KiwiSaver, and whether you’re ever able to buy a house. For the latest podcast I talked to Herald busines editor-at-large Liam Dann, and personal finance editor Tamsyn Parker. We talked about what's on the horizon for issues including your mortgage, your KiwiSaver, and whether the economy is about to tank. For the episode, 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 F

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's how shops get into your head, and how to fight back. Hosted by Frances Cook.We're in the final throes of the season of excess, and New Zealanders like to go out with a bang. Right after receiving a bunch of presents for Christmas, many of us like to head out on Boxing Day and get even more stuff. It's traditionally the biggest shopping day of the year in New Zealand, and retailers like to step up to the occasion with big sales to make sure they're the ones who get the Christmas cash from your grandma's card. But once you're in the store, a weird thing can happen. The red discount signs and frenzy from shoppers around you can ruin even the best laid plans. You go in for a blender, and walk out with a TV, three pairs of shoes, and a coffee machine that you're sure you need. Not that I'm talking from experience or anything. For the latest Cooking the Books podcast I talked to AUT lecturer Sommer Kap

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's what to consider before bringing home an animal companion. Hosted by Frances Cook.We're in the thick of puppy and kitten season, when cute little furry faces appear in pet shop windows, beckoning for you to take them home and enjoy their cuteness all day. Add that we're also in the season for presents, and some people get the idea that a pet could make the perfect present, whether for themselves or others. But as any pet owner will tell you, there are unexpected costs that come with a pet. There's the food of course, but also vaccinations, vet bills when they've found an inventive way to hurt themselves, a cattery or kennel if you want a holiday, or things they can destroy in a moment of furry madness. As kittens, my cats once took a liking to a particular corner of the wall, and chewed through the plaster and GIB all the way back to the stud. Why? Who knows. If you figure out the cat mindset, pl

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's how to take a the best holiday for the least money. Hosted by Frances Cook.I’m a big believer that having your money situation sorted doesn’t mean you miss out on having a life.In fact, if you do the money thing right, it actually means you can focus more on the things that truly make you happy.So now that summer is getting underway it’s time to think about holidays.Whether you’re staying in New Zealand or going overseas, there are plenty of ways to have fun and new experiences without getting into trouble with your bank.Or maybe you’re eyeing up a New Year resolution of chucking in your job, in order to go travelling for longer.In which case, I say go for it, and we have tips for that too.I called up Robin Censure from Backpacker Guide NZ, to talk about how all types of holiday-makers can get the best bang for their buck. We discussed hotel types, how to wine and dine, and which destinations hel

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today it's what's actually changed for mortgages, and how you can take advantage of it. Hosted by Frances Cook.For those who feel home ownership is out of reach, there's been some welcome news in the last week. The Reserve Bank has loosened the mortgage rules, making it easier for people with a small deposit to be approved. Of course, those with a small deposit are usually first home buyers. Add to that, interest rates are staying low, Auckland and Queenstown house prices seem to be cooling down, and KiwiSaver has existed long enough for some people to have built up a good deposit amount. It certainly seems enough to be cautiously optimistic – so is it big enough to help you get a foot on the property ladder? I talked to Mortgage Lab CEO Rupert Gough for the latest Cooking the Books podcast. We discussed what's changed for both home buyers and investors, the fish hooks that still exist, and what more changes

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's the things you need to know before monetising a hobby. Hosted by Frances Cook.KiwiSaver is a wonderful scheme. You get free money from the Government and your employer, it automates your retirement savings, and it has plenty of options to let you do what's best for you and your money. It's safe to say, I heartily approve of KiwiSaver. But just because it's a good scheme, doesn't mean you're safe from messing it up. Many people will max out their KiwiSaver, happy in the knowledge that they're doing the best thing for their future. The issue is that putting three per cent of your income into KiwiSaver has a very different result from putting eight per cent into it. You get totally different benefits, and you arguably do better with three percent going in. Once that money is in, it's locked in, until you retire. So you want to be sure you're making the right choice, before padlocking your money away

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's the things you need to know before monetising a hobby. Hosted by Frances Cook.When you're trying to get better with money, there's on simple truth that can't be ignored: it's always easier to do well if you have more cash coming in the door. Asking for a raise is one option, but another that appeals to many people is starting their own business. After all, the stakes may be high, but so are the rewards. It is something the average person can do. After all, New Zealand is famous for its business scene being dominated by small to medium businesses. The trick is that, if it's just you, you only have yourself to rely on. You need to become a jack of all trades, and learn fast, if you want to be successful. I talked to Xero's Managing Director for New Zealand and Pacific, Craig Hudson, for the latest Cooking the Books podcast. We discussed what to know before you start, the common problems, and how to

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's how to deal with an unexpected change in finances. Hosted by Frances Cook.Lying awake at night, dreaming of how things would be different if we won Lotto, is something all of us have done from time to time. The house we'd pay off, the job we'd quit, the holidays we would take. I'm sure all of us can think of how life would be easy if millions of dollars just fell out of the sky. But a sudden lump sum of money can actually do more harm than good, if you aren't prepared for it. You can overcommit to a new flashy lifestyle, or even struggle emotionally, leading to bad, rushed decisions.It doesn't even have to be a lottery win. A big enough change in your job, house value, or even an inheritance, can all have this effect. For the latest podcast I talked to The Private Office authorised financial adviser Nick Crawford, who specialises in advising people who have come into sudden wealth. We discussed t

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's how to make shared equity work for you. Hosted by Frances Cook.As the talk-fest on what to do about our housing market continues, one idea hasn't had the scrutiny it deserves.That's the idea of shared equity, where you might buy a home with a friend or family member to reduce the cost of a deposit, as well as the ongoing mortgage.So far so sensible, but actually, it's much harder than it sounds.For one thing, banks are often quite wary of it. They may ask you to practically sign your life away just to get approval on a joint mortgage.It's not that different to buying a house with your significant other, but you wouldn't know that from how banks react.You might also want to draw up a legal agreement between the two of you, as a shared house is quite the commitment, and can certainly go wrong.The problem is it shouldn't be this difficult, as shared equity between friends is a great solution to a ve

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's how to tip the job market in your favour. Hosted by Frances Cook.As we hurtle towards the end of the year, it can often be a time to take stock. If the latest employment data is anything to go by, many of us will be taking stock of our job prospects. The Westpac McDermott Miller employee confidence index shows many of us aren't feeling flash, with a fall in employee confidence levels over the September quarter. That's partly driven by a drop in people expecting a raise. The survey found only 27.5 per cent of us are expecting a pay rise in the next year, which is the lowest levels in three years. It's part of a broader trend. Wage growth has been stubbornly flat over the last few years, even though economic activity is picking up. If you're wanting to take matters into your own hands, I don't blame you. There can be many opportunities outside of getting a raise for the job you currently do. You ca

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's the things to know if you want to buy a house using KiwiSaver. Hosted by Frances Cook.You don't need me to tell you it's difficult for first home buyers right now. We all know this.What's more useful is finding out the various ways you can tip the scales in your favour. The biggest weapon in your arsenal is KiwiSaver. It can supercharge your savings, guaranteeing you double your money, even before you get any interest or investment returns. But while KiwiSaver can be a godsend, you have to know how to use it. For instance, it can be extremely difficult to use if you're buying a house at auction. You also can't use it if you live in an expensive market like Auckland, and want to buy elsewhere. There's no point stashing all your money in KiwiSaver, only to find out years down the track that you did it wrong. I talked to Canstar's Jose George about why KiwiSaver is more powerful for house savings, t

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's the subtle ways interest rates influence everything money. Hosted by Frances Cook.Talking interest rates, or the official cash rate, tends to make all but the most hardened personal finance nerds glaze over. The rates go up, they go down, who cares, what's for dinner and has anyone taken the dog outside yet?But don't be fooled into thinking this dry talk of percentages has no impact on your daily life. In fact interest rates are the key to many of your most important money decisions.It even flows well past credit cards and mortgages, to change our housing market, and even the share market. So now the Reserve Bank has decided to keep New Zealand's official cash rate at the historic low of 1.75 per cent. It's even expected to stay down there, all the way until 2020. You can bet that's important to your back pocket. For the latest podcast, I spoke to Chris Tennent-Brown, senior economist for ASB Wea