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 people bother with volatile higher risk investments. Hosted by Frances Cook.When we talk about investing, we often take the time to warn about high-risk investments. We’ll tell people you need to be ready for the ups and downs of such investments, to do your research, prepare mentally, and make sure you have a long timeframe to ride out volatility. It’s all true, but talking about this often gives the unfortunate impression that investing puts you at risk of losing everything. So people do nothing. What gets missed in those conversations is why you would even bother with all of that. If high-risk investments often go down and have the potential to cause sleepless nights, why would you put yourself through it? The problem is that it’s impossible to reach certain financial goals if you only ever put your money in a savings account. Well as it’s World Investor Week, now seems as good a time as a

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's the strategies one New Zealander uses to get financial independence. Hosted by Frances Cook.Money stress is so common that the majority of New Zealanders are struggling with it.In the latest Barometer survey, the Commission for Financial Capability found that 69 percent of people were concerned about their money. It was so bad, that 30 percent of them were literally losing sleep.While there are certainly times that the situation is out of our control, that's not the reality for the majority of people. And yet the majority are stressed. It's not as easy as giving up avocado toast for breakfast, which might make you sad and have little impact on your finances. But there are New Zealanders who found out they could turn things around, without sacrificing their quality of life. They focused on the bigger areas like housing and transport, and soon found they could reap the rewards.For the latest Cookin

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's what on earth is happening in our electricity sector. Hosted by Frances Cook.If you've ever shivered through a winter's evening because you don't want to turn on the heater and face a stiff bill, you're not alone. Many people, myself included, have at times put their health at risk in a cold house because they simply can't afford for the electricity use to go up. Well the first report out of the Electricity Pricing Review has shed light on why this has become quite so common. Household prices for electricity have surged up almost 80 per cent since 1990. Yes, that's adjusted for inflation.Meanwhile, industrial users are paying 18 per cent less, while commercial prices have gone up only 24 per cent. The review highlighted some other problems. People who don't shop around are paying up to 50 per cent more, but comparing prices between companies can be very difficult. There is also at least 103,000 N

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's both the financial and practical aspects to buying the best car for you. Hosted by Frances Cook.Buying a car has so many different parts to it, you can easily forgive people getting confused.First, you need to decide what kind of car you want. Little for commuting around a big city, bigger for ferrying kids around, maybe even bigger again so that you can fit tools in the back for your work.Then you need to make sure you're not buying a lemon. Most of us aren't mechanics, but we still have to figure out a way to check a slick salesman isn't pulling one over us.All of this before you even get to ways to pay for it.Let's be realistic, sometimes you genuinely need a car, and you don't have the cash to hand yet.Some of the options to fund it can leave you in a hole for years to come, so you have to proceed with care.The topic is so broad I couldn't even find one expert to cover all the different angle

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's getting past the retirement scaremongering to figure out what you really need. Hosted by Frances Cook.KiwiSaver has to be the thing I get the most questions about. People are rightfully wanting to look after it, manage it well, and ensure they have a comfortable retirement.Unfortunately, there are a few misconceptions floating around, that could see people hurt their future instead of helping it.Like, that if you’re worried about a market crash, you can ensure your safety by going for a low risk fund. That’s not necessarily true.Or, that markets going up and down, is even a thing to be avoided.Labelling certain types of investments as high risk does make some people nervous, but it can be more risky for your future to be always playing it safe with your retirement fund.I talked to Financial Markets Authority investor capability manager Gillian Boyes for the latest Cooking the Books podcast.We dis

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 fly solo in the sharemarket. Hosted by Frances Cook.Just getting started always seems to be the hardest part.So it is with shares. I receive plenty of messages from listeners who tell me that they'd like to buy some, but don't know where to start.Many people say they would rather do it themselves, rather than ease in with a funds manager.That's fair enough; I also enjoy the DIY approach.It's easy enough to do the technical parts, with many beginners setting up a trading account with one of the banks, or opting for a low cost option like SmartShares or Sharesies.But the trick is actually what to do from there.Because when you want to go it alone, you do have to be sure you've done your homework. There's nobody there to clean up the mess if you get ahead of yourself.I talked to Shareclarity managing director Daniel Kieser for the latest Cooking the Books podcast.We

Title: What's the best investment for your life stage?Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's the different ways to grow wealth in different stages of life. Hosted by Frances Cook.It might come as no surprise to you that many people believe investing is only for the rich. Heck, even I used to think that.The Financial Markets Authority has released research on attitudes to investing, and shock horror, older men with high incomes feel the most confident about investing into the financial market.Women, and younger people with low incomes, are the least confident.But investing doesn't have to be for the rich; in fact, it's the opposite. Usually, it's the way that people become rich in the first place.What's important is that you pick the right investment for your stage of life.While many people want to buy a house first up, it requires a huge deposit, and ties you down to one place.There are actually better options for those who are younge

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's the best strategies to argue for a raise. Hosted by Frances Cook.Whether or not to give a pay rise has become a hot potato.Unemployment is low, at 4.5 percent, which would usually mean employees could demand better pay or they'd walk.And yet, the latest figures from Statistics New Zealand show there's not much movement.Private sector wages have only gone up 2.1 percent in the last year, and some of that lift is due to the Government raising the minimum wage by 75 cents.There are also rumblings that low inflation and low business confidence are making bosses unwilling to part with the extra cash.So it seems employers aren't wanting to come to the party, despite it becoming an increasingly heated issue.Just look at the nurses strikes; they haven't walked off the job in almost 30 years, but they did just that in July, and would have again if they didn't eventually get an agreement nailed down.Teache

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's why and how you should negotiate your mortgage. Hosted by Frances Cook.Hope is on the horizon for those who want to buy a house.The recent Quotable Value House Price Index for July found that prices have stagnated, and investor activity has dropped off.That’s left a window of opportunity for first home buyers. Homes officially considered affordable, that’s those under $650,000, are being snapped up at a great rate of knots.There’s also the KiwiBuild programme getting underway.It will need to be tested in the real world before we know if it works or not, but there have been tens of thousands sign up, many in Auckland and Wellington.So there’s a mood of hope in the air for those who were previously worried they’d be forever locked out from buying their own home.But if everything goes well, and people find a home they can afford, that’s just the beginning.You’ll have to keep paying it off through yo

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 kids a good start with money. Hosted by Frances Cook.Family politics is hard enough without bringing money into it. But just because it's hard, doesn't mean you can put it off.For better or worse, most schools don't teach your kids about finances.Money makes the world go round, but somehow our kids are supposed to just figure it out for themselves.Never mind that roughly a third of New Zealanders don't understand compound interest, according to the Commission for Financial Capability.Compound interest is the easiest, laziest, and most reliable way to make money, yet people are missing out because they simply don't know what it is.Making sure kids learn the basics of money is a good starting point. Yet when money is a touchy subject, there are ways of having the conversation that are better than others.Then there's how you should help them out if you have some extra cash.Should yo

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's how to brace for a market downturn. Hosted by Frances Cook. Those who like to dabble in shares have had a dream run in recent years. Prices have gone up, dividends have been generous, and investors have happily raked in the returns. But there's a chill wind starting to blow. There have been rumblings for the last couple of years that the good days are set to end, and market watchdogs are only getting more dire in their predictions. The market regulator in France has warned that it's worried about a Wall Street crash, possibly as soon as this year. Meanwhile market heavyweight Vanguard has told its investors to expect much lower returns over the next ten years. While this all makes for a nice scary headline, it could actually be good news for some people. If someone is investing in shares over the long term, and is ready to ride the rollercoaster, you could even call this a golden opportunity.  I

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's the strategies for getting through a housing renovation. Hosted by Frances Cook.It's easy to look at a TV show on housing renovation, and start to feel the itch yourself.Maybe you start to see the improvements you could make to your own home. Or you fancy yourself a house flipper, doing up a house to sell on for monster profits.The problem is that behind the TV editing lies hours and hours of hard work.There's also the sponsorship and reality television budgets that make the issue of money a non-issue.I called Canstar general manager Jose George to find out what us mere mortals should expect, and where to find the money to make it happen.We talked about what mindset you'll need from the start, tips for keeping the costs down, and the best and worst finance options.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 a

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's what puts people off the sharemarket, and why it's worth a rethink. Hosted by Frances Cook.New Zealanders have a love affair with housing.It's true, owning your own home gives you security, and if you pay it off before retirement your golden years should be a lot easier.In comparison, many Kiwis are nervous of the share market. We were particularly badly burned by the 1987 crash, and that memory still haunts many people.Investment platforms Sharesies and the NZX's Smartshares have commissioned research from Colmar Brunton, that shows yes, we're a cautious bunch with the sharemarket.Only 20 percent of New Zealanders own shares, compared to 31 percent of Aussies, and over 50 percent of Americans.The biggest barriers were a belief that shares are for people with lots of money, the idea shares are particularly risky, a lack of spare cash, and not knowing where to start. But the times do change, and s

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's whether it's worth draining your retirement savings to buy your first home. Hosted by Frances Cook.Scraping together a deposit for your first home can be a fraught exercise. House prices are through the roof, and in some areas, only getting worse.Take the latest data from the Ministry of Business Innovation and Employment.Last month it revealed that finding an affordable home was getting harder for first-home buyers.It's particularly bad for those who live in Auckland, Wellington, Christchurch, Hamilton, or Tauranga.So, the vast majority of the country's young people.The solution held up to this is often to use KiwiSaver. Your savings go out automatically and get boosted by a three percent employer contribution, as well as $521 a year from the Government.But the problem is that your KiwiSaver is meant to be for retirement.There are plenty of personal finance experts who argue you should leave it

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's what some say you need saved to achieve early retirement. Hosted by Frances Cook.It doesn't matter how much you like your job, you're there to get paid. That's what makes it a job, rather than a volunteer role.But while many people are counting down to retirement at 65, others have their eye on the exit a little earlier than that.We've mentioned on this show before about the FIRE crowd, meaning Financial Independence, Retire Early.Many of those smart cookies are working on plans to retire at 30 or 40. Some even want to retire in their twenties.Well now it's time to get into the nitty gritty, because a key idea behind that is the 25x rule.The idea is that you work out how much you need to pay your expenses each year, and then you save 25x that amount.Invest the money well, and you could live off the profits, rather than slaving away each day for a wage.I called KiwiBank's chief economist, Jarrod K

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's the options for earning more money on the side. Hosted by Frances Cook. Making extra money on the side can be an appealing idea. Maybe you're trying to save for a house, or you just want to go on holiday and see a bit more of the world. You don't always have time for the long-term goals of pushing for a raise or a promotion. So you're left with earning more money in your spare time. But frankly, side hustles make me nervous. I don't like the idea of people working every waking hour, just to scrape by. That's not normal. Some of these 'genius' side hustles will chew you up and spit you out. You can actually end up losing money if you're not careful. It's not worth killing yourself working two jobs, especially if you'll barely break even at the end of it. Not all side hustles are created equal. I talked to Diana Clement, money writer for the New Zealand Herald, about what options are out there and

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's how to stay on top of the power bill in winter. Hosted by Frances Cook. You know it’s cold when everyone suddenly becomes a fan of cuddles. The cats, the dogs, the children, all pile together in a big heap of body warmth, and all you want to do is join them. Even my snobby cats have been trying to dig their way under the covers each morning. But trying to stay warm without going broke isn’t easy, and sometimes it’s hard to tell what’s worth doing, and what’s going to just be an annoyance that saves you about 50 cents. Energy poverty is a real and worrying phenomenon, but turning off the heater needs to be the last resort, because otherwise, your health is at risk. I talked to EECA energywise technical expert Christian Hoerning and how you can stay warm over winter without going into debt. We discussed the best types of heaters, subsidies for insulation, and the other places you can cut back on po

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's getting past the retirement scaremongering to figure out what you really need. Hosted by Frances Cook. There's nothing more irritating than patronising, scaremongering articles pretending to offer helpful advice about money. Take the recent claims that you should have saved your annual salary by the time you turn 30. As someone who's about to turn 30 myself, I'm only just getting to grips with how money actually works, never mind sitting on a stash of tens of thousands of dollars. Often these articles seem like nothing more than a way for the author to show off their own money skills. 'I've done it, and so can you,' is the attitude, paying no attention to the fact that we're all different, and especially so when it comes to our money situations. It's all very well for the boffins to set these high targets, but for mere mortals, something so unrealistic can make you feel like it's not even worth t

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's how figuring out your money personality can give you back control. Hosted by Frances Cook.There's a weird thing about economists, where they assume we're all calm and rational with our money.Whole systems have been designed around the idea that people weigh their choices, think calmly, and go for the best options, particularly when it comes to our money habits.But you only have to exist as an adult human to know that's not always true.That you buy something you shouldn't when you have a bad day. That you know people who were burned by the 1987 stock market crash, so you'll never buy any form of shares.  That saving sometimes feels boring, even when you know you need to.Emotions, past experiences, and yes, your personality, all have a major impact on our money choices.But Kiwibank has now come to the party with a money personality quiz, that aims to help you figure out how you feel about money, an

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's why saving even a little bit could change your relationship with money. Hosted by Frances Cook.People often say it’s the simple things in life, and that’s certainly true when it comes to money. Most of the things you can do to improve your financial situation are pretty simple.But it’s one of the very simplest things that will bring you the most happiness. You just need to actually use your savings account.This is from the ANZ Financial Wellbeing survey, which looks at not only whether we’re coping with our money, but also, how we feel about it.Among the results was a very interesting one for those of us who want to feel more in control: the two biggest changes to increase your money happiness are not borrowing for day-to-day expenses, and to save some money regularly.These lessons applied no matter what income people were on, and even saving a little bit had a powerful effect on financial wellbe