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 change for first home buyers, but also a word of caution. Hosted by Frances Cook.After years of bad news for first home buyers, it seems that things are finally starting to improve.Research released by ANZ shows an increasing number of houses are being sold to first home buyers, making up 22 percent of sales across New Zealand during the three months to December 2017.That's a jump up from 17 percent three years ago. ANZ is putting it down to an easing of the loan-to-value restrictions, which pushed banks to demand a higher deposit from those who wanted a mortgage.But there's a note of caution in this news, and it's a really important one.I certainly think buying your own home and paying down the mortgage is an important step for your future. It's something I prioritised for myself.But many of these first home sales are in west or south Auckland, where the market is still running hot. The

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's what's happening in the home loans market, and how to take advantage of that. Hosted by Frances Cook.If you manage to buy your own home, you may feel like you've already won the battle.And yes, take the time to celebrate, because that's a huge step towards securing your future.But in reality, you're only halfway there.A mortgage is likely the biggest debt you'll ever take on in your life. It will take decades to pay off, and a lot of what you pay will be interest to the bank.That's why it's always crucial to get the best deal you can. A small change in your interest rate can mean tens of thousands in extra payments, money that you could have spent on something else instead.There's been a lot of talk lately about possible increases in interest rates. It's true that at the moment debt is pretty cheap, and there are bargains to be had.That makes me suspicious that the only way to go from here is up.

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's the strategy many people are turning to, to stop emotion hurting their finances. Hosted by Frances Cook.When it comes to watching your finances, your biggest enemy is you.Yes, you need to watch out for the scammers, the charlatans, the get rich quick schemes that will only make you poor, or of course the people who mean well but don’t actually know what they’re doing.But still, you and your emotions are a bigger danger than that lot.We’ve often talked on this show about how you’ll get the biggest rewards for your money if you can stomach some risk, and think over the long term.People tend to nod sagely and agree with that, right up until they’re tested on it. Like the last couple of weeks.Shares have gone rocky, KiwiSaver balances have fallen, and even those in property are grumbling about the possibility of legislation restricting their ability to get the maximum bang for their buck.All of a sud

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's whether grandstanding politicians could hurt your back pocket. Hosted by Frances Cook.I love a good rollercoaster. Hands in the air, yelling and screaming as you go up the highs and down the lows, defying gravity.It's not quite so fun when it's your investments on that rollercoaster ride.I'm a big fan of investing when you can, and taking care of your own future. Shares are an accessible way for many of us to do that, or at least, a lot easier than trying to get into the property market at the moment.But boy, it looks like we need to buckle up for a ride.Good old President Trump has declared a trade war with China, slapping a bunch of tariffs on their trade partner.It's fair to say that rattled the markets, with the Dow Jones industrial average plunging 700 points in the immediate aftermath.And let's not get too comfy laughing at the Americans from back here in New Zealand. The war of words betwe

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's whether you should help your kids with the problem of getting a first home. Hosted by Frances Cook.Just when you thought the property market was bad enough, there's a whole new layer of complication added on top.High prices are now forcing many first home buyers to turn to the bank of mum and dad for help.Figures from Australia show that last year, 55 percent of first home buyers had some kind of help from the oldies.That's a jump up from just 3.3 percent in 2010. It's a shocking leap in just seven years.Over here in New Zealand, the figures are more piecemeal. Nobody collects this kind of data across the entire industry.But data from Mike Pero mortgages shows we might actually be worse off, with between 60-70 percent of their first home buyers getting help from the parents.This is worrying, first of all, because it's a step towards New Zealand having landed gentry. If you need parental help to b

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's how you can have fun without spending a cent. Hosted by Frances Cook.A basic rule of personal finance is to live within your means. Spend less than you earn. Have some self-restraint.Which is all well and good, but that's really hard.The finer things in life are fun, and I'm as susceptible as anyone else to just giving in, yelling out YOLO, and blowing my budget.So it's with a bit of self-interest that I put this episode together. There are many ways to have fun cheaply, or even for free. Sometimes we just need a reminder.I know what my favourite ones are, but I wanted to know yours, as well.Cooking the Books listeners are smart, and you guys always suggest something that I hadn't thought of.So the call went out on Facebook, Instagram, and Twitter, asking for your favourite ways to have fun on the cheap.The results? Eight clever ways to have fun without spending a cent. For some of them, you migh

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's whether it's about to get easier to buy your own home. Hosted by Frances Cook.First home buyers will be crossing their fingers and toes that relief is on the horizon, with the Labour Government working on plans to ban foreign buyers from our housing market.It's a strong move, designed to ease the pressure that's seen home ownership slip out of the reach of ordinary New Zealanders.It's one that appeals to me at first blush. Keep New Zealand homes for New Zealanders, not some foreign landlord that makes us tenants in our own country.It's simple supply and demand; if you reduce the competition for a house, down from the whole world, to just New Zealanders, the prices will surely fall.But the devil is always in the detail with these issues, and housing is a particularly devilish issue.We still need new homes built here, and some say this move will stop the foreign investment that drives big projects

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's how to use your credit score to your advantage. Hosted by Frances Cook.Most of us wouldn’t give much thought to our credit score. In fact, depending on who you ask, only between 20 to 40 percent of New Zealanders even know what a credit score is.But as with most things in personal finance, knowledge is power. Whether or not you’re keeping an eye on it, banks are constantly scoring us on how good we are with our money.This score can impact everything from getting a credit card, to bagging a new rental house, or even what kind of deal you get when you pay off your bills.And yet, while we’re ignoring our credit scores, many of us are also tanking them.Research from Credit Simple shows credit card bills tend to get neglected around this time. Late payments peak in the first quarter of the year, at 7.6 percent.Meanwhile research from Canstar shows more of us are using the plastic, up nearly 50 percent

Each week the New Zealand Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's why you shouldn't overreact to your KiwiSaver taking a dive. Hosted by Frances Cook.It’s satisfying watching your KiwiSaver climb higher every day. You can even get it attached to your bank accounts, so that you can keep an eye on it as part of your daily banking.You watch your nest egg increase in value, secure in the knowledge you’re planning for your retirement and looking after your future.Except watching it so closely can be a terrible idea. Especially if the recent sharemarket jitters have made you nervous.The sharemarket has hit a rocky patch. In the beginning of February the S&P500 had its worst day since the end of 2016, finishing the week down 3.9 percent.When the U.S. sneezes the rest of us catch a cold, so not only is the U.S. sharemarket continuing to jump around, but so is New Zealand’s.If you think you don’t invest in shares, think again. Most KiwiSaver funds have at l

Each week the New Zealand Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's why a pay rise isn't enough to solve money problems. Hosted by Frances Cook.If you're hoping a pay rise will fix all your money problems, I have bad news for you. It won't.Sorry to start on such a harsh note, but it's true. People on modest incomes can often find ways to look after themselves, including putting money away for retirement.Meanwhile people earning ridiculous amounts can still go broke, quite easily.How else do you think that even wildly successful singers and actors often become publicly and embarrassingly bankrupt?Now I'm the first to back you up if you want to go for a raise. But people often use that as an excuse to do nothing else, throwing their hands up and claiming there's nothing more they can do.But there's a major difference between income and wealth, and you can start becoming wealthier right now. You just need to change some of the ways you handle your money.Luc

Each week the New Zealand Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's how a greener lifestyle can help your back pocket. Hosted by Frances Cook.We all know we should be doing more to save the planet.Landfills are piling up, climate change is getting started, and it seems like a new species becomes endangered or extinct every day.The problem is we're can be a selfish bunch sometimes, and it can be hard to persuade people to look after the planet purely out of the goodness of their hearts.Isn't it lucky, then, that things like reducing waste can also save you money?Cutting down on the mindless consumption means you can keep your money for the things you actually want to do, while also stopping factories churning out rubbish that will be in a landfill within weeks.Those who've already made the change in their own lives say it's easier than you'd think, and the personal benefits are enormous.I called up zero waste blogger Amanda Chapman from wastefreeland.nz,

You could be forgiven for thinking cryptocurrencies, and particularly Bitcoin, are the victims of overexcited hype. That people need to cool their jets.You wouldn't be that wrong.Through 2017 the price of Bitcoin went up over 1000 percent.Bitcoin is of course just one type of cryptocurrency, but by the tail end of 2017 all the various cryptocurrencies together had a total market capitalisation of over 400 billion New Zealand dollars.Those are big numbers, and for some people, you'll be immediately suspecting we're in bubble territory. I certainly do.But there are those who like the spicy side of investing, who aren't put off by all this.There's certainly an argument that behind the hype, this technology is going to change the way we do business.If you try to trade bitcoin from New Zealand, though, you can run into difficulties. There's even talk of bank accounts being closed if you trade too much, as banks are nervous about the link between cryptocurrencies and criminal activity.If you've ever had a chance to

Each week the New Zealand Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's the common myths about KiwiSaver, and the truth behind them. Hosted by Frances Cook.If you don't do anything else for your financial future, sort out your KiwiSaver.OK, it's not quite as simple as that, but it's close.KiwiSaver has got so many goodies attached to it, including free money, and help for getting your first home.But you do have to put in just ten minutes of effort to make sure you're getting all the money you're entitled to.I encourage people to send me their money questions so that I can answer them on this podcast. One that comes up over and over again is KiwiSaver.Will the Government somehow steal your money? What on earth is the difference between all the different funds? And does it matter anyway, if you've signed up then you're sorted, right?On that last point, signing up is only the beginning, otherwise you could be missing out on hundreds of thousands of dollars in f

Each week the New Zealand Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's growing movement of people chasing financial independence, so they can retire early. Hosted by Frances Cook.There's a reason so many people queue up to buy a Lotto ticket each week.The siren call of winning big, telling the boss to stuff it, then taking off on a trip around the world, is a dream for many of us.But there's a growing movement of people who believe you don't have to win Lotto in order to quit your job for good. They say the secret is FIRE – which stands for Financial Independence, Retire Early.These people are laying the foundations to say goodbye to the nine-to-five, with some planning retirement at 30 or 40 years old.Crazy, you might think. They're delusional. They'll run out of money.Well the fans of this idea would disagree with you, and they're certainly doing their homework to make sure they set themselves up right.The idea is that you live frugally, invest everything

Each week the New Zealand Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's the reasons women need to save more for retirement, and how to deal with it. Hosted by Frances Cook.This episode is one of the most popular from 2017, and originally played on July 13.Many of us aren't prepared for retirement, but the deck is particularly stacked against women.Spend a moment thinking about it, and it becomes obvious why.Women earn less than men, an average of 12 per cent less. So if you're saving a percentage of your income, you're already off to a bad start with less in the kitty.Then there's the common reality of having a family. Right or wrong, it's usually women who take time out from the workforce in order to raise the kids.When you stop earning, or shift on to part-time work, your retirement savings will obviously take a major hit.Earlier this year ANZ released information showing that the average woman would retire with almost $80,000 less in their KiwiSaver accou

Each week the New Zealand Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's what to expect for your finances in the year ahead. Hosted by Frances Cook.It's the time of year to take stock, and your finances are the best place to start.It impacts everything else, and you need to be honest about where you stand before making grand plans for the year.But frankly, it's not always totally within our control. Sometimes the dice rolls in your favour, and sometimes there are clouds on the horizon that you can only try to shelter from.So what's the good, bad, and ugly for our financial 2018?Should we be bracing for impact, or getting ready to make hay while the sun shines?I talked to two of my NZ Herald colleagues to find out, Business Editor at Large Liam Dann and Personal Finance Editor Tamsyn Parker.We talked about whether you can expect a pay rise, what parts of life will become more expensive, and what on earth the housing market is up to.For the interview, listen to

Each week the New Zealand Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's where to start if you're in debt. Hosted by Frances Cook.This episode is one of the most popular from 2017, and originally played on September 23. If you're in debt up to your neck, it's tempting to close your eyes and pretend it isn't happening. But just because that's a totally natural response, doesn't mean you can give in to it. The longer you ignore debt the worse it will get, and eventually, the people who loaned you the money aren't going to let you ignore it anymore. It's a horrible situation to be in, and yet, I understand how people get there. There's an entire industry dedicated to getting you to spend money you don't have. In the last six months we've even seen a new industry crop up, with four companies now offering buy now pay later, for when you're shopping online. The idea is that you see something you like, buy it, and then pay for it over several weeks. The thing is, if

Each week the New Zealand Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's how to handle the notorious Boxing Day sales. Hosted by Frances Cook.Everyone loves to grab a bargain, but the problem is that shops know that.We're in an expensive time of year, but once you've cleared up the barbeque and polished off the Christmas cake, many people will then turn their attention to spending all of that Christmas money on the Boxing Day sales.Boxing Day is one of the most heavily discounted days of the year for New Zealand.It's also a top day for spending, but what really brings the craziness, is that people all turn up at once, right at the beginning of the day. Nobody wants to be the schmuck who only just misses out on the last of the heavily discounted stock.But in all the excitement, it's easy to lose your head. If you buy rubbish you don't need, it doesn't matter how good the bargain was. It's still rubbish you didn't need.I called up Sue Chetwin, chief executive o

Each week the New Zealand Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's how to get through the notoriously expensive Christmas season without blowing the budget. Hosted by Frances Cook.You don't need me to tell you it's an expensive time of year.I start to feel the dread of Christmas around October, reminding me I need to buy people presents, stock up on food, and prepare for the social calendar to be flooded.All of the Christmas festivities are fun, don't get me wrong, but they can definitely leave you with a fiscal hangover.So in the spirit of Christmas, I got the Cooking the Books community together to share their best tips with each other.I asked those who follow my pages on Facebook and Twitter how they got through Christmas without totally blowing the budget.We're a bunch of frugally minded people, and the last time we did a community episode I was impressed at the great advice people had to offer.Listen to the podcast for the full quotes of how people

Each week the New Zealand Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's how to protect yourself from the scammers. Hosted by Frances Cook.When you're trying to make a buck, the lure of finding the golden ticket is hard to resist.The old saying 'if it's too good to be true, it probably is', gets bandied around a lot, and yet people still fall for scams over and over again.Even worse is when you think you know what you're doing. There's nothing more dangerous than a little bit of knowledge.It's often just enough to overinflate your confidence, and send you running headlong into deals that have major red flags.Take cryptocurrencies like bitcoin.They're the hot thing right now, helped along by some astonishing rises in value. They're true disrupters, likely to change the way people do business, and there is certainly money to be made.But unless you really know what you're doing, in my view cryptocurrencies are too similar to gambling at this point in time. A new