Cooking The Books

OPINION: Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's why you need to expect investments to go bad, and what you can do about it. Hosted by Frances Cook.It's the age old advice: shares are a great investment for building up personal wealth, as long as you can stomach the risk.Over ten years, you're likely to get a sizeable return. But within that decade, be prepared to grit your teeth through some years where your money goes backwards.That was proved true within the last week, with Fletcher Building having an absolute nightmare.They had their second profit downgrade for this year, their share price plunged to a 16 month low, and now the CEO has bailed and is being replaced.Yep, that's a bad week. But let's be honest, this happens. I personally think that everyone who can invest, should, and we'd all be a lot better off financially.But if you dabble, you have to expect to take a hit now and then.Forewarned is forearmed, as they say, and if y

OPINION: Each week the New Zealand Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's targeting the biggest areas to make savings. Hosted by Frances Cook.Whenever people starting talking budget advice, the same tips tend to crop up over and over.Count your pennies, and the dollars will look after themselves. Skip your daily coffee. Give up smashed avocado on toast, and you'll be able to afford a house.Yes, little things can add up, but actually, I vote we start with the bigger things. Some of us are already going without the luxuries.But whatever your situation is, almost everyone's biggest expenses are keeping a roof over their head, transport, staying warm, and feeding themselves.These are areas you can't cut out, at least not without going through significant hardship.But there are always ways to save money and do things smarter. Change one of these areas, and you could be saving hundreds of dollars. Maybe you can make changes in all of them, and ratchet your

OPINION: 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.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, on average about 12 percent 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 accounts than a man. When you look at the percentages, the average woman’s a

OPINION: Each week the New Zealand Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's celebrating Kiwisaver's birthday with the biggest dos and don'ts. Hosted by Frances Cook.Happy birthday, KiwiSaver. You're now 10 years old, and if my childhood memories serve me right, it's a very big deal to finally get into double digits.I'll let you enjoy the birthday cake, but I'm afraid there's some bad news. Even ten years in, not everyone is sure how you work, or even wants to sign up.Around 580,000 people didn't contribute anything to their KiwiSaver last year. Even for those who did, about 450,000 are in default conservative funds.This means people haven't thought about where their money is going, and could be missing out on hundreds of thousands of dollars.KiwiSaver is one of the best tricks you have up your sleeve for looking after your finances. It helps you save, can teach you how to invest, and will almost certainly make retirement a lot easier.And yet, the figure

OPINION: Each week the New Zealand Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's whether university is still your golden ticket to a good career. Hosted by Frances Cook. When I was in high school, the advice was clear. Get good marks, get into university, and then swan into a high-paying job that you enjoy. What specifically you should study wasn't discussed as much. The thinking was that, as long as you went to university, you'd be fine. Maybe study something you enjoy, because then you'll "never work a day in your life". Well, myself and my fellow graduates faced a rude shock when it came to the end of our expensive degrees. Not only were entry-level jobs thin on the ground, but the pay was abysmal. When we finally got employed, it turned out even a job you enjoy is still work.We weren't alone. The latest stats from the Ministry of Education show the pay you can expect after earning your degree is dropping.  You do still get a boost to your wages from havi

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's how scammers will try to get your cash, and what you can do to stop them. Hosted by Frances Cook.Nigeria's royal family must be enormous.It seems that every couple of months, a new Nigerian prince is emailing me his tale of distress; how he's inherited a lot of money and needs a trustworthy person like me to help him access it.All I need to do is pay the fee to unlock the millions, and for my efforts I can get a couple of million myself.Okay, so maybe we all know to avoid that particular scam, but far too many kiwis are still caught out every year by scammers.Just last week, scammers started sending out emails claiming  to be from the IRD, and promising a large tax refund.Clever timing, scammers. It certainly is tax refund time, but you should get yours by going to the real IRD website, not clicking links in unsolicited emails.You'd be surprised at the people who get sucked in by these tricks. Fo

Each week the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's why KiwiSaver default schemes are a horrible idea, and what to do about it. Hosted by Frances Cook.If your KiwiSaver is in a default scheme, you're throwing money away. You're going without, saving some money each pay day, and yet you could still be in hard times when you finally retire.Imagine that. You willingly stash money away each pay day, thinking you're doing the right thing, and then when retirement comes you still have to scrimp and save.When for the sake of a few clicks at your computer, you could have made the exact same savings, and had a cushy retirement.I'm not exaggerating, and that's why it’s extremely worrying that 445,000 people are in default KiwiSaver accounts.  We're coming up to ten years of KiwiSaver existing, and yet, hundreds of thousands of New Zealanders haven't even looked at where their money is going.It's a false security to think you’re saving diligently, without re

Each week, the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's how to donate smart and make your charitable dollars go further. Hosted by Frances Cook.OPINION: Just because you're feeling charitable doesn't mean you need to shoot yourself in the foot.You're able to get a tax rebate worth a third of your charitable donations, and yet, only about half of kiwis take the Government up on that offer.It makes no sense to leave that money going begging. You could get the rebate back, and donate it all over again. Or you could take yourself out for breakfast to reward yourself for being one of the good ones.Both are great options, but first, you need that cash in your pocket.The point is, the Government set up this sweetener for a reason. It's designed to encourage people to keep giving to charities.Just because you're doing the right thing doesn't mean you need to pinch your wallet any harder than necessary.And yet, the issue is actually getting worse. Since 2008

OPINION: Each week, the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's how to save money on your power bills this winter. Hosted by Frances Cook. Tomorrow is the first day of winter, and along with the cold and dark, comes the annual spike in power bills.I remember all too well the misery of cutting back electricity use to the bare minimum. In my student days it wasn't just a case of not using the dryer.In one flat I lived in, I saw a major argument over people daring to use the hot water to wash their hands. There was a screaming fight, followed by an icy stand-off, the whole works.I was horrified by the argument, but at the time, understood why my flatmates got so mad. When you're barely getting by, every cent of power becomes a big deal.But even now that I'm working and winter power bills aren't quite so dire, it's still helpful to learn new tricks. I can afford to pay for a heater now thank goodness, but if there's a cheaper option for my heating, I wa

Each week, the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's how to ease into the sharemarket. Hosted by Frances Cook.Investing is a tricky thing to dip your toe into, especially if you've only got a little bit of spare cash. Most people who talk about it will stress the importance of having diversity, meaning you shouldn't put all your eggs in one basket.But that's a little tricky when you're just starting out.Maybe you've scrimped and saved to put aside $1000, and now you want to put that $1000 to work. That's a good effort, but in the world of investing, it's tiny.Everyone starts somewhere. But, where, exactly?If you're anything like me, you start with trusty old Google. You might decide that because you have time on your side, the sharemarket is a good idea.You hear about funds, where even a small investment will automatically be split across different companies, giving you that diversity that everyone is rabbiting on about.Great, you think. I should

Each week, the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's how to get your free government cash. Hosted by Frances Cook.Would you like free money? How about $500, and you barely have to do a thing?This time of year is all about tax. Just the word is enough to give some people the shudders, but resist the urge. Think instead of the free money going begging, and how easy it can be to get hold of your slice of the pie.First up is the KiwiSaver tax credit. If you told me you had an investment where I'd get a guaranteed 50 percent return, I'd think you were scamming me.But if you save just $1042 each year, you can get $521 from the Government. You could be getting hundreds in free cash from the Government each year, and yet last year, 580,000 New Zealanders didn't.Some people genuinely need every dollar, but let's be honest, almost all of us can spare $20 a week. That's all it takes. Set up a direct debit, and this time next year, you'll be thanking me.It's

OPINION:  Each week, the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's how to change your money habits for the better, starting today. Hosted by Frances Cook.It's so easy to ignore things that scare you. For instance, money. Most people don't like to talk about it, and now it turns out, a shocking number of us have no plan for our money. A third of us, in fact.I get the temptation to put it off. Six months ago I was part of the one in three New Zealanders who had no plan and was living only for today.While I've since had the realisation that I need to get it together, many people went the other way. The number of people with a plan actually dropped last year, according to BNZ research.I suspect many people have the same reasons I did. Retirement seems far away (it's not really), money seems hard (it doesn’t have to be), and the whole thing gets put off for another day.Another day which can turn into years.Those under 30, like me, are among the worst offen

OPINION: Each week, the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's how to guard your pennies if you're renting your house. Hosted by Frances Cook.If it's not enough that many people are locked out of the housing market, now even renters are feeling the squeeze.Our housing problems have led to higher rents, and those costs are seeping outside of the main centres of Auckland, Wellington, and Christchurch.Trade Me's Property Report shows rents in the regions have gone up twenty percent over the last three years. On average, it'll now cost you an extra 3-thousand a year.Add that to the list of things making it harder for people to save and get ahead, then.How can you save to buy your own house, when it costs you more every day to pay off someone else's mortgage?For the most part, renters are stuck. When there's stiff competition for a house, you can't exactly negotiate a lower rent.But knowledge is power, and if you know your renting rights, there are plac

OPINION: Each week, the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Hosted by Frances Cook.We're a nation with a debt problem.Many New Zealand borrowers have debt that's up to 12 times the amount they earn in a year.You can argue that a certain amount of debt is a good thing. But banking bosses warn that ideally we shouldn't have debt of more than seven times what we earn in a year.So, we're way over.It's so bad that just this month, Australia's Reserve Bank cast a worried eye over New Zealand debt levels.They declared our debt-to-income levels were so bad, it was not only a risk to the New Zealand economy, but Australia's as well.Hush, Australia. Nobody likes the bearer of bad news.To be clear, I personally don't like any debt. But not all of it is dumb.For instance, good luck paying cash for a university education. And hey, at least your student loan is interest free.Getting a mortgage so you can invest in your own home is necessary for almost everyone.But there

OPINION: Each week, the NZ Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's how to start investing when you're a rookie. Hosted by Frances Cook.I am a wage slave. I clock into work for a certain number of hours every day, and I am paid in return for those hours.If I was to be fired unexpectedly, I'd be in big trouble.Get into an accident that means I can't work? Big trouble.Or, in a few decades from now when I want to retire, I'd currently be living hand to mouth.I don't have an income apart from my job, and my savings cushion is quite small.I'm not alone in this. Even if you're a good saver, don't be congratulating yourself too soon.Stashing it away in your bank account isn't enough.Interest rates are rock bottom, so you're probably barely keeping up with inflation.Dip into that account a couple of times, get hit with fees, and you could easily be going backwards.Over time, and done right, the overwhelming consensus is that you need to invest.But just last wee

OPINION: Each week, the Herald/Newstalk ZB's new Cooking The Books podcast will tackle a different money problem. Today's looks at older people and women being paid less for their work, on average. So what can employees do? Hosted by Frances Cook.Pay gaps are real, and they're not fair. Whether it's because of your gender, your age or some other fun form of discrimination, there are employers out there who will try to exploit you. They're more common than you think. Information given to the Herald by Statistics New Zealand showed the average worker earned the most between 40 and 44. It's understandable that younger people are cheaper, and you'd hope they get paid more as they get more experience. But it doesn't make sense that your earning would drop again when you hit your older 40s. What's happening to these older workers, who are nowhere near retirement age? Meanwhile, this week we've seen an historic moment as three women became the first to use the Government's new pay equity mediation service.

OPINION: Each week, the Herald/Newstalk ZB's new Cooking The Books podcast will tackle a different money problem. Today, it's what first-home buyers can do if they're feeling locked out of the market. Hosted by Frances Cook.You might have noticed a lot of people are talking about housing right now.There's helpful advice being given, like "toughen up and join the army", or "give up brunch on the weekend, and make more sacrifices".Well, thanks for being condescending, but neither of those pieces of advice are helpful.Our housing market is so overheated it could burst into flames at any moment, particularly if you live in Auckland.Prices have soared around the country, while mortgage conditions are only getting stricter.This year the Economist rated New Zealand's housing market the most unaffordable in the world.That's thanks to having the biggest jump in prices, and the highest cost against average incomes.Demographia's International Housing Affordability Survey was slightly kinder, putting Auckland as the four