Speaker 1: You're listening to the Weekend Collective podcast from News Talk Sedby.
Speaker 2: You like to gamble, I tell you so, I know
Speaker 2: it is to blame you say, ah.
Speaker 3: Yes, welcome back to the Weekend Collective. By the way,
Speaker 3: we often let our guests choose the music, and I
Speaker 3: was looking at my guest thinking, is this one of
Speaker 3: your choices? But no, it's not that it's my produced
Speaker 3: it's the choice my producer, Tira, because it's her last
Speaker 3: day for a few weeks, I think, because she's off
Speaker 3: to get married, uh, and that's going to be lovely.
Speaker 3: And if Sean does Shawn have listen to the show.
Speaker 3: By the way, Tyra, Sean, if you're listening to the show,
Speaker 3: trust me, if you're not an emotional guy, you need
Speaker 3: to practice faking it, because she is going to judge
Speaker 3: your wedding, your wedding, and I think you'll probably lose
Speaker 3: it anyway, most grooms always lose it. She's going to
Speaker 3: judge the success of the wedding as to whether when
Speaker 3: you see her arrive and walk down the aisle and
Speaker 3: you first see the lay eyes on her, that you
Speaker 3: have to burst into tears. Basically, she's expecting tears and
Speaker 3: large emotions from you and just a quick heads up.
Speaker 3: I mean, we've told a lot of the country now,
Speaker 3: but no pressure. But if that's not within you, then
Speaker 3: you need to start. Go and have a chat with
Speaker 3: an actor and just say, how do I look like?
Speaker 3: How do I make it look like I'm chaking back
Speaker 3: the tears and you'll be onto a winner because Tyra
Speaker 3: is judging her the success of your nuptials on that
Speaker 3: one moment.
Speaker 4: Okay, marriage advice from Jim Bubbish, maybe should change subjects
Speaker 4: for the next hour.
Speaker 3: Well, it's not it's wedding advice. It's the actual occasion
Speaker 3: of advice. I do have good I actually have really
Speaker 3: good advice on weddings because actually, and I haven't even
Speaker 3: introduced you and Manda Morrele. Good afternoon.
Speaker 4: How are you to see you again?
Speaker 3: No, because marriages weddings are show bars. And if you're
Speaker 3: not used to show bars, people plan the biggest day
Speaker 3: of their lives. They spend all this money and they
Speaker 3: have all these expectations. And the one thing, because I've
Speaker 3: sung it a few weddings as well, I just say, look,
Speaker 3: take all your expectations and just roll with every punch
Speaker 3: that is thrown. Your away. Just don't have any expectations
Speaker 3: and enjoy yourself because otherwise you'll be like, ah, I
Speaker 3: wish we could do it again so I could actually
Speaker 3: enjoy myself. That's that's my advice to Tyra. Would that
Speaker 3: be your advice to Tyra?
Speaker 4: Yeah, I think that's wise advice. And one day we
Speaker 4: should tackle the personal finance of weddings because it is
Speaker 4: really a performance, not to take away from your special day.
Speaker 3: But Tyro says it's too late to tackle the personal
Speaker 3: finances of weddings because she's spent a fortune. Have you
Speaker 3: spent a fortune on it?
Speaker 5: Tyra?
Speaker 4: Smart with money?
Speaker 3: Anyway, we're not talking about weddings. But actually, I don't mind.
Speaker 3: I can always pivot on the back of a trivial
Speaker 3: topic that I've thrown in there for the sake of it,
Speaker 3: just because it's Tire's last day for a few weeks.
Speaker 3: I We'll do it another time.
Speaker 4: On another occasion.
Speaker 3: Okay, of course, what we're going to talk about, well,
Speaker 3: it's it's it's it's kind of personality related and I
Speaker 3: won't bring it back to weddings any longer. But personality
Speaker 3: type and there are people who are good with money
Speaker 3: and there are people who are lousy with money, and
Speaker 3: I sometimes wonder if that's a lot of the time
Speaker 3: it boils down to personality or how much do environmental
Speaker 3: factors if you're born into a Because I know people
Speaker 3: are very good with money because they had none when
Speaker 3: they were growing up, and the opposite, people who had
Speaker 3: never even thought about money are the worst. Spend thrifts,
Speaker 3: never learned how to right. And I mean, some kids
Speaker 3: have a knack for saving. One of my daughters, I'm
Speaker 3: not sure about the other one, so I can't I'm
Speaker 3: not sort of narrowing it down, and they wouldn't want
Speaker 3: me to discuss them. But one of them is absolutely
Speaker 3: going to be good with money because she's careful with it,
Speaker 3: for start, and she's aware of how it can work,
Speaker 3: and you know, it's better in the bank and all
Speaker 3: that sort of thing. But I mean, have you always
Speaker 3: been good with money or is this something you learned?
Speaker 4: Yeah? I think I'm well. What it comes down to,
Speaker 4: to my mind is sort of the psychology and habits
Speaker 4: so behavior. So genetically, are you inclined to be better
Speaker 4: with money than not? I would disagree with that, but
Speaker 4: it is a multifaceted sort of thing like environmentally, you're
Speaker 4: influenced by your parents. Some people, you know, they grow
Speaker 4: up in a family home where they're horrible with money,
Speaker 4: and is it, you know, a backlash to that they
Speaker 4: become very frugal and sensible with their money. So it's
Speaker 4: you know, it's it's sort of it depends really. But
Speaker 4: I wrote about this actually in my latest blog called
Speaker 4: I said perfect pers of finance is an inside job.
Speaker 4: So I think it really does start with sort of
Speaker 4: the motivators and a mindset to want to do things better,
Speaker 4: and we all kind of arrive at that point differently
Speaker 4: in life.
Speaker 3: That's possibly the better way to frame it. What is
Speaker 3: the best motivation to be better with money? Because I
Speaker 3: think that if it's a put, I don't know that
Speaker 3: there's some sort of mindset. If you're worried that if
Speaker 3: you think of saving money and being good with money
Speaker 3: as meaning you can't enjoy yourself with life, then you're
Speaker 3: never going to address it because you think, oh, it's
Speaker 3: about finding that motivation.
Speaker 4: It's the psychology, right, So it's like going on a diet.
Speaker 4: Sometimes the second you think you're on a diet, then
Speaker 4: because you know subconsciously you're like, oh, I need to
Speaker 4: go out and need a whole bucket of you know,
Speaker 4: Jerry's ice cream or whatever. So you kind of you
Speaker 4: sabotage yourself or whatever it is, Hogen does you know,
Speaker 4: or you go up for your big mcdaughey. So there's
Speaker 4: something in the deprivation that you end up doing something
Speaker 4: stupid to trip yourself up. So you have to find
Speaker 4: a strategy mentally that works for you, which is going
Speaker 4: to be long term successful. But you know, the moment,
Speaker 4: the light the light bulb moment is kind of different
Speaker 4: for most folks. I would suggest that I could have
Speaker 4: seen it with people and my kids and everything that
Speaker 4: there's quite often it is event driven. For example, a wedding,
Speaker 4: you know you've got to big a went, you know,
Speaker 4: event coming up you need to save. So then you've
Speaker 4: got a very specific event to save for. Or likewise,
Speaker 4: you're buying your first car. You need to save for
Speaker 4: the car and the ensurance. So those milestones quite often
Speaker 4: trigger behavioral changes in people. Yeah, and so you're forced
Speaker 4: to change if you want that particular object or whatever
Speaker 4: it is, that goal. So there's that riding underneath that.
Speaker 4: I guess if you wanted to generalize, you could say
Speaker 4: some people are just naturally better. Why probably because they're
Speaker 4: more mindful with money. You know, they're seeing, you know,
Speaker 4: what they can do with money short, medium term, and
Speaker 4: other people are just but you know whatever in living
Speaker 4: for the moment, which has described one of my kids,
Speaker 4: you know, go hard, go fast, you know LIFs for
Speaker 4: Living today kind of thing.
Speaker 3: And that checks a lot of numbers on Saturday.
Speaker 4: Yeah. So so but you know, again, like certain events
Speaker 4: will change, start to reform your behaviors because they have
Speaker 4: to change. But ideally you want to just have sort
Speaker 4: of an overarching view of your finances being an extension
Speaker 4: of you and just managing them in a really healthy way.
Speaker 4: And that's again what I wrote about this week.
Speaker 3: Cool. Well, look, we'd love your participation on this as well.
Speaker 3: One hundred and eight, ten and eighty. Are you good
Speaker 3: with money? And actually what made you good with money?
Speaker 3: If you are? Was it the fact that you, I
Speaker 3: don't know, played around with saving and could see the
Speaker 3: positive effects and you set yourself up with good habits
Speaker 3: or was it because you actually realize, oh my god,
Speaker 3: I'm an absolutely tragedy with money. If something doesn't change,
Speaker 3: it's like any bad habit, whether it be. You know,
Speaker 3: we were talking about alcoholism in the in the last hour,
Speaker 3: but I mean the consequences of having bad money habits
Speaker 3: can be pretty catastrophic as well, if you blow everything
Speaker 3: you ever spend. But what have you ever changed your
Speaker 3: money habits and what actually motivated you do it to
Speaker 3: do it? I was actually just reflecting as you were
Speaker 3: talking there, Amanda, that I probably changed a little bit.
Speaker 3: I was deeply traumatized recently on mortgage, on paying off
Speaker 3: the mortgage, because I realized, how in a minute, again
Speaker 3: an incentive and we've got you know, life costs with
Speaker 3: having kids and all that sort of thing. Life is
Speaker 3: expensive or it's expensive, easily let it be, I guess.
Speaker 3: But I suddenly went, hang on a minute, if we
Speaker 3: pay off the mortgage at this rate, I just did
Speaker 3: the maths and I thought, okay, then we could pay
Speaker 3: off for the mortgage by X date, and oh my goodness,
Speaker 3: every dollar that we earn after that we can save.
Speaker 3: And so I just realized, oh, man, if I hosted
Speaker 3: a money after long enough, I should know better. But
Speaker 3: it's one thing to talk about and nothing to do it.
Speaker 3: But I just worked out that, you know, the accelerated
Speaker 3: rate of payment if you can afford it saves you
Speaker 3: an absolute fortune and for me, I probably needed that
Speaker 3: little carrot.
Speaker 4: It's funny though, because you know, I mean, I can
Speaker 4: have these conversations with people, you know, till the cows
Speaker 4: come home, and it's really you know, the penny will
Speaker 4: drop for somebody at a certain point and until such
Speaker 4: time as they kind of.
Speaker 3: Get it famous last words by the way, then you know.
Speaker 4: Then the behavior will change. But again, I think an
Speaker 4: earlier education so people kind of get grasp the effect
Speaker 4: of compound interest over time, whether it's working against you
Speaker 4: or for you. People really need to gether has wrapped
Speaker 4: around that, and that'll change longer, you know, change outcomes.
Speaker 3: In fact for people. Education ultimately, whether you have been
Speaker 3: taught by someone or whether you have educated yourself on
Speaker 3: how money works, must be a prime motivator, isn't it.
Speaker 3: Because again I've got a visual, a visual coming up
Speaker 3: in my mind because I am seen an event for
Speaker 3: a company who we've had them on the show a
Speaker 3: couple of times, Concillium. They've got a new key we
Speaker 3: saber product out. But there were some graphs that were
Speaker 3: put up in the course of them stating their case
Speaker 3: to the investment advisors who were there, and the power
Speaker 3: of compounding interest. And I looked at that and one
Speaker 3: I did feel a massive amount of regret not having
Speaker 3: put more money into things in my twenties. But to
Speaker 3: see the power of compounding interest, even at just the
Speaker 3: change choosing the right fund for you know, better growth
Speaker 3: and all that sort of thing, the power of making
Speaker 3: a good decision earlier was with not tens, but even
Speaker 3: hundreds of thousands of dollars in some cases.
Speaker 4: Yeah, it has a huge effect. But again, you know,
Speaker 4: if you're preaching to maybe a fifteen year old and
Speaker 4: showing them charts and graphs and stuff, I suspect very
Speaker 4: few of those kids those messages are going to stack.
Speaker 4: But other kids, you know, they'll just be like, oh whatever,
Speaker 4: I've got a party next week, so you know what
Speaker 4: I mean. So but if you can drive home, and
Speaker 4: I think it does take you know, continual repeated messages
Speaker 4: to get it through. And now you know, thanks to
Speaker 4: AI and technology and apps, I hope that those behaviors
Speaker 4: can be reformed a lot earlier to greater effect. And
Speaker 4: you know, this is what they're partly doing with Kiwi.
Speaker 4: Sever contributions are being increased to try to drive that.
Speaker 3: Well, actually, that's funny one that little I mean, this
Speaker 3: is not quite what we're here to talk about. How
Speaker 3: they've reduced the government's contribution on that. At least they've
Speaker 3: still got something in. But it used to be what
Speaker 3: was it one thousand bucks a year or something that
Speaker 3: you go.
Speaker 4: Yeah, well for those of us with long memories, so
Speaker 4: two thousand and seven, yeah, you got one thousand dollars kickstart,
Speaker 4: which is sweet. That was sort of the kicker together.
Speaker 3: You put in twenty bucks a week, you got an
Speaker 3: extra thousand from the government that.
Speaker 4: Was there was that in addition to the kickstart, So
Speaker 4: you got one thousand dollars just to open an account,
Speaker 4: and then if you had contributed a thousand, you got
Speaker 4: an extra thousand, and then that got whittled away to
Speaker 4: five hundred and twenty one and then just recently with
Speaker 4: all the way So don't get me started on KIMSIC,
Speaker 4: as I think they've done a bunch of damaged to that.
Speaker 4: But what they did occurrent to that, well, let's go
Speaker 4: to the list after the personal finance of weddings, So
Speaker 4: so what what they've cut it back, But I mean
Speaker 4: they've also uh, decided to increase contribution rates, which will
Speaker 4: help to lift again that nice line over time if
Speaker 4: you're going from three to four, which is plus four
Speaker 4: times you know from your employer and yourself. So that
Speaker 4: that will help to kind of increase that gradual line
Speaker 4: in the positive direction for a lot of people when
Speaker 4: they start younger, and maybe one day we'll get in
Speaker 4: line with what Australians and other people are doing internationally,
Speaker 4: because they're still well behind in that regard. So that's
Speaker 4: a forced way. That's that's a big, you know, compulsory
Speaker 4: bump for people. But you want it. You want people
Speaker 4: to come to these conclusions on their own, ideally, because
Speaker 4: then it's going to reform behaviors across the whole range
Speaker 4: of their personal finance.
Speaker 3: It's I don't know what drag family into it, with
Speaker 3: your your kids with it. Did you make a point
Speaker 3: of trying to teach some certain financial lessons regardless of
Speaker 3: the choices they've made.
Speaker 5: Oh?
Speaker 4: God, yeah, you do.
Speaker 2: They?
Speaker 4: I mean, I mean they've been beaten around with my
Speaker 4: book right times and various lectures whether they'll stick, But
Speaker 4: I do test them occasionally and like what are the
Speaker 4: what are the things if I get hit by a bus,
Speaker 4: you're going to remember. So for me, and I know
Speaker 4: there's a lot of people that are really pro credit
Speaker 4: card use. But for people who are not going to
Speaker 4: pay off their credit card and end up racking up
Speaker 4: all that debt, which include my two kids sadly because
Speaker 4: they're still you know, consumed with partying. Is you know,
Speaker 4: don't get a credit card when you can get one
Speaker 4: of those debit credit cards, so you're only spending money
Speaker 4: that you've got, right, Because for many people, all that
Speaker 4: debt that they own, then the interest on the debt,
Speaker 4: and then the car breaks down, it's just it's going
Speaker 4: to be a noose around their neck and will always
Speaker 4: hold them back from achieving better. It comes. The other
Speaker 4: thing that doesn't get talked a lot about, but you
Speaker 4: know it is out there is choose your partner carefully.
Speaker 4: Who you partner with as your life partner. If you
Speaker 4: go down that route will make a huge impact to
Speaker 4: your overall financial well being and your well being in general.
Speaker 3: Massive impact as you mean about their attitude to money.
Speaker 3: Rather than just make sure you marry someone who's if
Speaker 3: you're not going to earn money that they do well, it's.
Speaker 4: Well, it's compatibility fundamentally, and that you're supporting each other
Speaker 4: to achieve your goals. And you know, really if you've
Speaker 4: got that solid base of a relationship and there's not
Speaker 4: many but together, you know the compounded effect of having
Speaker 4: a really strong partnership and really good communication when it
Speaker 4: comes to money and people who are supporting one another career.
Speaker 4: So you're on track. I mean, things change obviously, but
Speaker 4: that and there's been lots of research to show can
Speaker 4: have a huge impact on long term outcomes for a
Speaker 4: whole range of positive things in your life, including find.
Speaker 3: Actually, so just getting back that, as you said, if
Speaker 3: you got hit by a bus, you would want your
Speaker 3: kids to stand up if you'neral in say, I tell
Speaker 3: you what you know A mom taught us don't get
Speaker 3: a credit cad.
Speaker 4: Well that but okay fine, And also I really do hope.
Speaker 4: I mean I've made mistakes, my mistakes with relationships too,
Speaker 4: but you know, I you know, I think a lot
Speaker 4: of people kind of waltz into those things and thinks, oh,
Speaker 4: but you know, financial strain is the is a bigger
Speaker 4: cause of discussed this before of marriage breakdowns than infidelity.
Speaker 3: It causes a lot of financial and fidelity in a
Speaker 3: way more.
Speaker 4: Well, you've just said it, like it's expensive living out
Speaker 4: there if you've got one partner who is not paying
Speaker 4: attention to the finances, continually spending, frittering the way the
Speaker 4: money you know, you're gambling whatever it is. Addictions is
Speaker 4: that you know the other person is going to get
Speaker 4: really resentful that they're you know that they're having.
Speaker 3: To well stressed to the max level.
Speaker 4: Right, it could really be toxic in a relationship. So
Speaker 4: getting that right, like getting the partnership. But anyhow, there'd
Speaker 4: be there's lots of wise heads out there say they
Speaker 4: should actually offer university courses on how to choose the
Speaker 4: right partner for.
Speaker 3: You really using your right partner one oh, one, well.
Speaker 4: Think about it. It's it's a huge surge and it
Speaker 4: will impact your finances as well. So and then the
Speaker 4: third I'm trying to remember anyhow, but so that you know,
Speaker 4: choosing the right right relationship. And oh the third thing
Speaker 4: I said, Look, if you've got a win fall tomorrow,
Speaker 4: like you know, lottery or whatever, and you've got your
Speaker 4: mortgage to pay off, I'm a big one for repaying
Speaker 4: the mortgage to deb and like what you're doing is like,
Speaker 4: how much better off we're going to be when I
Speaker 4: get rid of that Yeah noo, surround my neck and
Speaker 4: then you know, you can start investing that money.
Speaker 3: We'd love you to join us as well. At one
Speaker 3: ten eighty one, we're talking about, you know, money habits,
Speaker 3: but is it possible to fix bad money habits as
Speaker 3: an adult? But more specifically we've we've touched on it
Speaker 3: just now with Amanda Morale is what are the what
Speaker 3: are the early lessons that you can that you can
Speaker 3: teach kids to give them a shot it actually respecting
Speaker 3: themselves in a way or having having faith in their
Speaker 3: own abilities that they can actually manage their finances, because
Speaker 3: I mean, I can imagine if you come from a
Speaker 3: family where mum and dad don't seem to be great
Speaker 3: at their finances, kids might think, oh, well, you know,
Speaker 3: we're they're poor. I'm going to be poor for the
Speaker 3: rest of my life. But are they lessons that you
Speaker 3: can pass on? What would they be to kids? I
Speaker 3: totally agree with you, by the way, on the credit card.
Speaker 3: If you can't pay your credit card off every month,
Speaker 3: don't get it. Do love the airpoints though, seeing that
Speaker 3: sucks men doesn't matter.
Speaker 4: Tell me that no, no, no, I'm here. I'm with
Speaker 4: you on that one. But most people are not prompt
Speaker 4: pairs and then they overspan and then they count and
Speaker 4: then they make the minimum contribution on the credit, the minimum.
Speaker 4: If you only pay the minimum, if you also do
Speaker 4: the mouth on that, you'll be paying, like you know,
Speaker 4: quite often like double triple the amount of the original
Speaker 4: purchase price.
Speaker 3: So right, we'll take your calls eight hundred eighty ten
Speaker 3: eighty what the best way to teach you kids financial habits?
Speaker 3: But also is it something where you've just found with
Speaker 3: your own children or yourself that there's an element of
Speaker 3: your own personality on that stuff? Of course, there is
Speaker 3: an element of personality. We all were driven to make
Speaker 3: good and bad decisions depending on our whims, aren't we?
Speaker 3: Are we? Maybe I'm wrong? One hundred eight and eight
Speaker 3: will be back in just a moment. Is twenty five
Speaker 3: past five news talks? You'd be yes, welcome back. Let's
Speaker 3: take your calls on basically learning good habits? Is it
Speaker 3: personality or are there what lessons you can pass on
Speaker 3: to your kids to give them the best chance of
Speaker 3: making good decisions with money? And let's kick it off
Speaker 3: with Mark.
Speaker 5: Good day.
Speaker 6: How are you doing good?
Speaker 3: Thanks?
Speaker 6: I just wanted to talk about savings accounts, just because
Speaker 6: I don't think people quite realize I suppose a few
Speaker 6: pitfalls of them I've had recently, something happened to me
Speaker 6: with west Bank, where I've had a online savor account,
Speaker 6: which I've had for over ten years, which I think
Speaker 6: most people have savings accounts and sort of set and
Speaker 6: forget them. I put my money in getting three points
Speaker 6: five five percent interest, and I've recently found out that
Speaker 6: bank has dropped it down to zero port four or
Speaker 6: five percent and never told me, so I've effectively lost
Speaker 6: almost fifteen years of interest slowly dropping over those years
Speaker 6: that have ever been told. And when I've queried the
Speaker 6: bank about this, they've said the only way to see
Speaker 6: it is on your statement, And of course nobody really
Speaker 6: gets statements anymore because they're born's online. You can't see
Speaker 6: it on your account. You have to go through various
Speaker 6: batons to actually ever see the percentage. And I think
Speaker 6: it's a bit dis ingenuous of the banks how they
Speaker 6: do that when they can put your mortgage on their
Speaker 6: mortgage rate on there, but when you're giving them money,
Speaker 6: but they're not happy to give you the same access
Speaker 6: to the rate when they're taking your money.
Speaker 4: Yeah, no, thanks for that. That's a good point, Mark.
Speaker 4: I mean, I think most people know that the savings
Speaker 4: rates you get off banks savings account are pretty abysmal,
Speaker 4: and I would agree it's pretty opaque in terms of
Speaker 4: the rates because I'm like, you've got you know, I've
Speaker 4: got my investments, but I do keep some cash in
Speaker 4: a bonus online saver and when you've got a lot
Speaker 4: of money, you get the bonus. But it's still quite pathetic.
Speaker 4: It's even more pathetic abroad, by the way, like the
Speaker 4: New Zealand rates are a little bit better than what
Speaker 4: you get.
Speaker 7: You also well not no, I'm not talking about the
Speaker 7: actual rates themselves. What I'm saying is you've signed up
Speaker 7: for an online saver rate, I don't know what you're
Speaker 7: ready towards. Mine was three point five five. I don't
Speaker 7: think people are aware that they can change those rates
Speaker 7: and they don't have to know they do.
Speaker 4: They do adjust, yeah, because they're tied with the o
Speaker 4: c R typically, but they did, they do. You have
Speaker 4: to really pour through the to see what the rates,
Speaker 4: so they don't make it easy and they should, like
Speaker 4: signal the change. I agree.
Speaker 3: Yeah, So basically, if you got a mortgage mark, they'll
Speaker 3: definitely know if they're going to have to shove your
Speaker 3: mortgage rate up. But if you've got a savings account,
Speaker 3: you have to find that out for yourself of the
Speaker 3: mortgage rates.
Speaker 7: Absolutely, yeah, And I think there's there be hundreds of
Speaker 7: thousands of people in New Zealand who don't know that happens.
Speaker 7: I mean, I talked to a young guy I work
Speaker 7: with today whose literally set his savings account up in January,
Speaker 7: set and forget as part of saving to get a mortgage.
Speaker 7: And because I told him, he checked and it dropped
Speaker 7: one and a half percent. He knew nothing about it.
Speaker 4: Yeah, unfortunately there's a little there's little education. Well, I mean,
Speaker 4: there should be more realization about you know, savings accounts
Speaker 4: being a poor vehicle for actually saving for any tangible goal.
Speaker 4: It's usually just a safe place to temporarily park an
Speaker 4: amount of money where you've got a cash and call account.
Speaker 4: But it does serves very little other than that.
Speaker 7: I think the bankship have an obligation to tell you.
Speaker 7: I mean that they have, you know, they're supposed to
Speaker 7: be there to look after you. There's verious Financial Act
Speaker 7: that they're supposed to follow, and this is a prime
Speaker 7: example of hiding it. Yeah, I think they actually probably
Speaker 7: if anyone delved down to it and did an actual
Speaker 7: official information Act, would p probably find that they could
Speaker 7: trying to find it.
Speaker 3: Actually, you know what, Mark, they've probably worked out that
Speaker 3: if they really went on a publicity campaign to remind
Speaker 3: people to maximize their savings returns, they would they probably
Speaker 3: worked out a dollar amount that would cost the banks,
Speaker 3: wouldn't it.
Speaker 4: Well, So, to be honest, it's not just savings accounts
Speaker 4: that you can target banks for having sort of bad
Speaker 4: or shifty behavior, because there's all range of I mean,
Speaker 4: banks don't draw attention if you've got your ki server
Speaker 4: account with them to how much you're paying and Kiwi
Speaker 4: server fees which are probably add up to a lot
Speaker 4: more than what you're losing on your savings account over time,
Speaker 4: if the difference is quite big. But there's that, there's
Speaker 4: credit card fees, there's annual fees, you know, So that's
Speaker 4: how banks roll. Unfortunately, Yeah, it's really the onus is
Speaker 4: on the consumer. But I agree, Mark, you know, maybe
Speaker 4: you shouldn't have to be the one who's doing all
Speaker 4: the work. It should be, you know, the bank who's
Speaker 4: demonstrating and showing you what it is exactly your pain.
Speaker 4: But that's not the first time.
Speaker 3: Actually, the good thing is we're talking about it at
Speaker 3: the whole point. I mean people are listening right now.
Speaker 3: There might be people have gone, I've got an online
Speaker 3: savings account. I might just go think see what they're
Speaker 3: giving me? What one percent? The trick there's a trick
Speaker 3: that for some of those incentive based ones, you know
Speaker 3: where for instance Rabo and I'm not having a crack
Speaker 3: at Rabo, by the way, but I had a one
Speaker 3: where you if you stick in a certain amount per month,
Speaker 3: you get the bonus interest. And I was doing it
Speaker 3: from one account to the other. The other account ran
Speaker 3: out of money, so it stopped doing it. And it
Speaker 3: was a few months before I realized and I thought, see,
Speaker 3: ideally it would have been like, hey, by the way,
Speaker 3: you've stopped making the payments, you're missing out an interest.
Speaker 3: But of course they're not going to do that because
Speaker 3: they have got the use of my money.
Speaker 4: Right, yeah, I think I've got one, and they say,
Speaker 4: if you don't do the extra twenty dollars, But again
Speaker 4: I just I take it for granted now that these
Speaker 4: are really bad savings vehicles. Again, they're a good place
Speaker 4: to temporarily park money in the short term because you
Speaker 4: need access to it quickly and you don't want to
Speaker 4: be punished like breaking a term deposit. But you really
Speaker 4: shouldn't be using savings accounts to earn any money because
Speaker 4: it's not really earning you much money at all. It's
Speaker 4: just a safe place to park your money. So anybody
Speaker 4: who's got a large volume of money in a savings
Speaker 4: the house should definitely be thinking about better alternatives.
Speaker 3: Actually, but tell you what, we'll sit on that one
Speaker 3: and we'll come back to what you're what a couple
Speaker 3: of suggestions would be that would be the next step
Speaker 3: up for being a better alternative for your money. But
Speaker 3: let's take some more calls showing Tomo good to Tomo.
Speaker 5: Hello, Hello, hello, you there. There's two ideas not offer here.
Speaker 5: I love this program, but that's encouraging people to finally
Speaker 5: really enjoy money that they accumulate, really really good, have
Speaker 5: a house of security, you know, good clothes, piqual care,
Speaker 5: all that wonderful, and still wasting it. Now, the two
Speaker 5: things that I found most successful in my own life.
Speaker 5: I got amount of raw rab books you know how
Speaker 5: to get rich books like Think and Grow rich, amount
Speaker 5: of Polly and Hill or the for our workbeak by
Speaker 5: ten years. They both they all say the same thing.
Speaker 5: They say, down with it's on paper. Figure out who
Speaker 5: you are and what you want. That's first thing. The
Speaker 5: second thing is most powerful that I found very successful
Speaker 5: is once you've figured out on that paper what you
Speaker 5: want to have and do, get some picture that magazine
Speaker 5: or an online business computer, get images and put yourself
Speaker 5: in the is of the things you want to have.
Speaker 5: Visualization Yeah, exactly, exactly, very very powerful. All the wonderful
Speaker 5: talking realities of savings and interests and all that, all
Speaker 5: that will follow if you can see that house and
Speaker 5: you standing or with your dog and you're a nice
Speaker 5: carry outside boy, oh boys, when you go into the
Speaker 5: shop and no, I'm not going to buy that shirt,
Speaker 5: I'm saving form house.
Speaker 3: Yeah. Would that work for everyone?
Speaker 4: Tom and I would agree with that. But you need
Speaker 4: the vision totally, and it's good to have, Like you know,
Speaker 4: if you're not a visual doesn't it actually get a
Speaker 4: collageboard and cut it out. But you also need a
Speaker 4: plan that's going to enhance that. So whilst there are
Speaker 4: some manifestors out there, think you could just sort of
Speaker 4: look at your vision board.
Speaker 3: Yeah that vision that will happen, but.
Speaker 4: Okay, maybe maybe it'll happen, maybe it won't. But actually
Speaker 4: you need an action plan to vehicle.
Speaker 5: Yeah it's vehicle, you know.
Speaker 3: Yeah, yeah, as opposed to you know, rolling out a
Speaker 3: yoga mat and sitting there and manifesting wealth. I think
Speaker 3: it needs another follow up action, doesn't it. Yoga is great.
Speaker 3: By the way, this is not about yoga. I just
Speaker 3: mentioned yoga mat for some reason. I don't know why.
Speaker 4: Don't be hitting on the yoga. But now listen, you
Speaker 4: need it's you need the vision and you need some
Speaker 4: concrete actions. Again, this is well timed because I've wrote
Speaker 4: about this this week on my blog.
Speaker 3: By the way, Amanda Morale dot com. If you want
Speaker 3: to check out the blog, isn't it Yeah, there we
Speaker 3: go website.
Speaker 4: So thank you for that. Yes, absolutely, so you need
Speaker 4: there's two parts to the equation, and so again it
Speaker 4: comes down to that sort of psychology, the big vision
Speaker 4: and the behavior, and that's where all get hit a
Speaker 4: sweet spot if you're you know, rolling the two out right.
Speaker 3: Let's thanks for a cool time I got on you.
Speaker 3: I think I got his name right with the spelling,
Speaker 3: but anyway, it's Steven. Hello.
Speaker 8: Oh hello Sam, Hell Amanda. How are we doing good?
Speaker 5: Hello?
Speaker 8: Well, I've just got some a story or some bad
Speaker 8: advice I actually gave my friend. I worked for a bank,
Speaker 8: and it links to your shed at the start around
Speaker 8: Funday and a wedding and how bad of an investment
Speaker 8: they are. But anyway, my friend, my friend, he wanted
Speaker 8: to get no money and obviously wanted to get married,
Speaker 8: so he needed to get the finance. So yeah, exactly,
Speaker 8: So I I your credit card and you can balance
Speaker 8: transfer at zero percent to another bank. So you got
Speaker 8: ten grand lunch transferred to another bank and for twelve
Speaker 8: months only. Anyway, wedding happen in front of the wedding
Speaker 8: Happy days. Zuroobsent interest anyway, checked them in a year
Speaker 8: later post wedding. I was like, oh, what have you
Speaker 8: done with that?
Speaker 5: Credit cards? Oh?
Speaker 8: Still got it? Still got it. It's like, oh, the
Speaker 8: interesting chat. Anyway, he hadn't paid it back, so obviously
Speaker 8: a little trip on the credit card.
Speaker 3: Front and paying for a wedding with a credit card is.
Speaker 8: Greg Yeah, obviously that the other from the person alone
Speaker 8: or funds from others. But yeah, yeah, yeah, so it's
Speaker 8: don't do that everyone.
Speaker 4: You only do that transfer if you have a good
Speaker 4: plan to pay it off. And so if you forget,
Speaker 4: this is why I again, I've been beating my children
Speaker 4: over the head with us roll about credit cards. Unless
Speaker 4: you can use a credit card, you know, intelligently, don't
Speaker 4: go down that track. But a lot of people like
Speaker 4: your friend, just get caught up with the business of
Speaker 4: life and then they forget and then boom, oh yeah
Speaker 4: I forgot. I've got a twenty percent interest rate on that,
Speaker 4: you know, ten k that takes effect the date, you know,
Speaker 4: So yeah, that should be a good warning to other
Speaker 4: people who are getting seduced by zero percent.
Speaker 3: And if you have got that credit card date, just
Speaker 3: find a way of borrowing the money from a legitimate
Speaker 3: source other than a credit card, so at least you're
Speaker 3: on some other interest rate that rather than your credit
Speaker 3: card being the former borrowing.
Speaker 4: Have you been to's weddings where they've got like a
Speaker 4: little gift tree and you just get piking cash, So
Speaker 4: like if you'd had that in lieu of gifts like
Speaker 4: that would have been a good way to pay off
Speaker 4: the debt. It seems a little bit cold, but.
Speaker 3: Some cultures have a sort of thing about giving money,
Speaker 3: don't they, rather than gifts or whatever.
Speaker 4: You just put an envelope a cash in there and
Speaker 4: it's you know. I again, it might not go over
Speaker 4: well with some people are your guests, but I know
Speaker 4: people get way to pay off the data.
Speaker 3: Some people for weddings. Oh gosh, we're in dangerous territory
Speaker 3: because we have to save this for another day. Who
Speaker 3: actually tell people what it is per seat to go
Speaker 3: to the wedding? So if you want to come, that's great.
Speaker 3: It's one hundred and fifty bucks each.
Speaker 4: We're definitely doing this subject.
Speaker 3: I think we're definitely doing it, and we'll have that
Speaker 3: maybe when Tire gets back from her wedding and she
Speaker 3: can tell us how she funded it. I'm not sure
Speaker 3: what her ticket prices for her wedding, but she could
Speaker 3: possibly sell tickets, you know, very very popular wedding in
Speaker 3: her community. It's twenty just trolley twenty one minutes to
Speaker 3: sex News Talk said B that's.
Speaker 9: You are.
Speaker 3: Welcome back to the weekend. Let's the smart money talking
Speaker 3: about savings, habits and what makes people good with money.
Speaker 3: But are there lessons you can teach your kids? And
Speaker 3: while we're talking about all sorts of things and also
Speaker 3: big mistakes you can make with money. I think we've
Speaker 3: put down that you should not pay for your wedding
Speaker 3: on the credit card, but you know who knows people
Speaker 3: will do what they need to do.
Speaker 9: Jan Hello, he said, you'd not say who and stick
Speaker 9: with Jen.
Speaker 3: Oh no, I I just saw a different name, and
Speaker 3: I thought, well, if it's Jan, but you were going
Speaker 3: to I gather you have your talk back name and
Speaker 3: your own name now, so that the cat's out of
Speaker 3: the bag on nationwide T wrote it radio.
Speaker 9: Yeah, so that's my real name.
Speaker 3: Let's go with that.
Speaker 9: I think how you budget or how you deal with
Speaker 9: money is based on your role models of your parents.
Speaker 9: And I had a mother who was very big on
Speaker 9: saving and budgeting, and she had a tin for each
Speaker 9: bill and should put so much of the income into
Speaker 9: each tin and until she had enough to pay the bill.
Speaker 9: And today I have six different accounts in my bank
Speaker 9: and I allocate them the money each fortnite into each
Speaker 9: account for various reasons, and that's how I work my money.
Speaker 9: But also I could write a book on how to
Speaker 9: make money, How to make your money earn money for you?
Speaker 3: Really, what's a secret?
Speaker 9: Well, buying things cheaply and then reselling them at a profit.
Speaker 3: Well but well, actually I guess that is it, as
Speaker 3: long as you don't buy it the wrong price and
Speaker 3: find that nobody wants to buy what you've paid for it.
Speaker 4: But Buffet's got the same strategy. Just buy stakes on
Speaker 4: the cheap and then you know he'll sit on those.
Speaker 3: Yep, you need to start your investment company, jam or sorry,
Speaker 3: and yep, I mean, I mean it's very simply part.
Speaker 3: But if you can buy things cheap and sell them
Speaker 3: for more, and it just depends how much you incure
Speaker 3: in marketing and sending it in business of stuff.
Speaker 4: But you know, businesses, it's common sense really, But you know,
Speaker 4: common sense is you know, sorely lacking in society. And
Speaker 4: it's just sort of the totality of these decisions that
Speaker 4: you make over the course of you know, your lifetime
Speaker 4: and over a whole range of areas, like whether it's
Speaker 4: your grocery shopping or you know, holiday planning, or the
Speaker 4: amount of money you're spending on a car. All these
Speaker 4: decisions they incrementally add up So if you're kind of
Speaker 4: if your if your mind is attuned to where you
Speaker 4: can save and you know, not be make dumb decisions,
Speaker 4: you're going to be in a far off better position.
Speaker 4: But a lot of people just simply aren't thinking about
Speaker 4: how they're spending their money. They're not mindful. So this
Speaker 4: is where the yoga mat or meditation or some sort
Speaker 4: of strategy, which do you think at a deeper level
Speaker 4: about what it is you're doing with your money, and
Speaker 4: back to the guy with the vision war what it
Speaker 4: is you want to achieve with your money, and then
Speaker 4: sitting down and coming up with a plan about how
Speaker 4: to get from.
Speaker 5: A to B.
Speaker 3: Yeah, right, Hey, thanks for your course? Is it? Let's
Speaker 3: go to Paul?
Speaker 10: Hello, how's it going. I'm just wondering what you think
Speaker 10: of the American American Expressed Critic card because I joined
Speaker 10: up with it and now I really hate it. I'm
Speaker 10: going to get out of it when the when they
Speaker 10: they runs out, but I'm really, really, really hated. And
Speaker 10: the main reason I really really hate it is becalled
Speaker 10: its FUCI. Hardly any ninety percent of people do not
Speaker 10: take American Space credit card.
Speaker 3: Yeah, there's a different transaction fee on some cards.
Speaker 10: Yeah, yeah, yeah, that's the only one bed. There is
Speaker 10: about a one or two perceeve more and I have
Speaker 10: run them up every time, and I have seen bring
Speaker 10: your prices there. People will not keep with you because
Speaker 10: you're too dear.
Speaker 4: Well the no, you've reached a good point. And you
Speaker 4: know what, Our max is getting beaten up on a
Speaker 4: lot of the personal finance threads and Reddit as well
Speaker 4: because they've lowered a couple of years ago, they had
Speaker 4: a really they had the best rate for what you
Speaker 4: could I think it was fifty seven dollars or something
Speaker 4: to accumulate a point, and then that that has just
Speaker 4: changed recently, so it's I think you've got to spend
Speaker 4: almost eighty dollars. So a lot of people are going
Speaker 4: off of our Max because you're not getting the points
Speaker 4: that you used to get. You've got the annual fee.
Speaker 4: They give you a teaser like zero, you know, zero
Speaker 4: annual fee on the first year. So there's that and
Speaker 4: then you know, this is surcharges and a lot of
Speaker 4: people don't take it. So you know, I still like
Speaker 4: where I use it as VP, like we're going to
Speaker 4: get petrol and I've got petrol cars at the stage
Speaker 4: and the shopping, you know, the big stores New World
Speaker 4: or Countdown or whatever it's called now they take it.
Speaker 4: So I still try to put the bulk of my
Speaker 4: you know, shopping on there to get the points. And
Speaker 4: it's actually been quite good for me that I've been
Speaker 4: able to finance most of all my son's flights from
Speaker 4: Danida and back and a few bonus ones for another kid,
Speaker 4: and so this it's worked for me. But I totally
Speaker 4: hear what you're saying, and you're not the only person
Speaker 4: who's going off of Amex.
Speaker 3: I think actually the strength of the Amex years ago
Speaker 3: was the advertising campaign where they would they made the
Speaker 3: claim that basically, regardless of where you are, it's the
Speaker 3: most commonly accepted credit card. And I think that time
Speaker 3: has moved on since then.
Speaker 4: I think overseas it's still got more sort of Cachet
Speaker 4: and Creed exactly. But New Zealand, you know, this mechanic
Speaker 4: doesn't take a number of places my dentist where you've
Speaker 4: got a big bill and you're thinking, oh, I wish
Speaker 4: I could get the points, and again you're not getting
Speaker 4: as many points as you used to. You've got the
Speaker 4: annual fee and if you're into this lounge access stuff too.
Speaker 4: I remember trying to get into it comes with sort
Speaker 4: of a lounge thing and then some insurance thing. And
Speaker 4: I've tested those two and disappointed on the insurance. And
Speaker 4: also one lounge said no, this is a New Zealand
Speaker 4: AMEX card. It's and it's a platinum card, but they
Speaker 4: don't take it. So it's it's got doesn't have the
Speaker 4: again that luster that some of these other cards do.
Speaker 3: I remember those very smug ads where somebody's trying to
Speaker 3: pay for something and when he goes to American Express,
Speaker 3: that'll do nicely.
Speaker 4: Think so yeah.
Speaker 3: Anyway, Hey, by the way, somebody sent me a link
Speaker 3: to a story just based on the amount of and
Speaker 3: there's an article about money and transaction accounts which are
Speaker 3: costing New Zealand billions New Zealanders billions of dollars because
Speaker 3: they're leaving their money on the table by keeping their
Speaker 3: cash in either basic savings or just transaction accounts. Well,
Speaker 3: actually tell you what, we'll just cover this. This time
Speaker 3: has flown so quickly, it's almost ten minutes to six.
Speaker 3: Just say, if you're not going to stick it in
Speaker 3: a savings account, you don't want to go the whole
Speaker 3: hog on sort of a diversified sort of the savings portfolio.
Speaker 3: What are the simple answers to doing simply just a
Speaker 3: little bit better with your money rather than leaving it
Speaker 3: in those low paying savings or transaction accounts. We're back
Speaker 3: in just to tick. It's ten to six. Yes, news
Speaker 3: talks there be welcome back. My guest is Amanda Morale
Speaker 3: from her website by the way, because we've been talking
Speaker 3: about financial habits and her recent blog. It can be
Speaker 3: found at Amanda Morale. That's MO double R A double
Speaker 3: L dot com. Go and check it out. It's a
Speaker 3: very well laid out website with lots of interesting information there,
Speaker 3: so check it out Amanda Morale dot com. Now some
Speaker 3: of Amanda has asked me what is read it and
Speaker 3: they have heard read it as an ra a D
Speaker 3: new word it, but read it as r D d
Speaker 3: it And it's a blog where people talk about anything
Speaker 3: including finance.
Speaker 4: Yeah, there's a lot of hardcore personal finance junkie's hanging
Speaker 4: out on Reddit. You can go check it out. Yeah,
Speaker 4: I think you have to set up an account and
Speaker 4: then you can comment on it. But there's a lot
Speaker 4: of information sharing which is the value and Reddit everything
Speaker 4: from like who's the best Givi's ever to know what's
Speaker 4: the best credit card rate? The AMAX thing will be
Speaker 4: covered in there. That's pretty sure where I read that comment.
Speaker 4: So it's basically just a community sharing and forum board
Speaker 4: where you find everything health, finance, and.
Speaker 3: They're all other things called threads, threads of conversation, so
Speaker 3: you would look for personal financing and that.
Speaker 4: Yeah, and they've got the same for Canada or wherever.
Speaker 4: So anyhow, warning, you may end up spending hours on Reddit,
Speaker 4: so don't go there if you've got busy, other important
Speaker 4: things to do. But it can be educational. Just take
Speaker 4: it with a grain of salt.
Speaker 3: That even experts. Any topic you can imagine is on Reddit. Now,
Speaker 3: I did say we're going to just give people a
Speaker 3: steer that if people have got money sitting in those
Speaker 3: sort of dead transaction accounts or low paying savings accounts
Speaker 3: and they don't want to go the whole hog, and
Speaker 3: they just want to make a simple change to improve
Speaker 3: their returns, what are the options.
Speaker 4: Well, so you have to think about your time frame
Speaker 4: for that money, because, like I said, savings accounts just
Speaker 4: sort of short term, you know, parking for your money
Speaker 4: very short term. If you need access to that money
Speaker 4: in a year's time, but you don't want to invest
Speaker 4: some money in the stock mark, for example, you might
Speaker 4: want to go the root of a term deposit right
Speaker 4: and likewise, if that money is you know, going to
Speaker 4: be around for that or you don't have to spend
Speaker 4: it or tap it for the next five to ten years,
Speaker 4: you might want to get a diversified investment fund. So
Speaker 4: I would direct people to money Hub is a great
Speaker 4: site to do some research. Equally, if you want to
Speaker 4: compare the rates going all rates for savings borring interests
Speaker 4: dot co dot nz, you can do. It's got great
Speaker 4: comparisons for the volume of.
Speaker 3: Money storing term savings where you can.
Speaker 4: It's wonderful to research. Yeah, so interest stock cod has
Speaker 4: got all those categories laid out so you can do
Speaker 4: some good comparisons and also calculators so you can see
Speaker 4: what the rate will be over that period of time
Speaker 4: as well.
Speaker 3: And even if people are in transient, your own bank
Speaker 3: will have a better option than what you've got right now.
Speaker 3: Probably wouldn't they.
Speaker 4: I mean they do. There's like the bonus saver's count.
Speaker 4: It's okay It really depends on the amount of money
Speaker 4: you've got in there too. So for smaller amounts of money,
Speaker 4: those you know, short term again saving accounts maybe okay,
Speaker 4: But bigger volumes of money, you definitely want that money
Speaker 4: to be working hard for you, so do some research.
Speaker 4: There's some really great websites, so there, you know, shop around,
Speaker 4: but consider the time when how long you know you
Speaker 4: can lock that money up for too, because if you
Speaker 4: need it, you know tomorrow, because you've got to fund
Speaker 4: a wedding or pay for the university, Which.
Speaker 3: Leads to a nice seguay to say, hey, thank you
Speaker 3: so much for listening, Amanda Morale dot com go and
Speaker 3: check it out, and also just a public best wishes
Speaker 3: for your wedding, Tyra. We'll look forward to discussing wedding
Speaker 3: finances when you get back. And Sean, if you're still listening,
Speaker 3: remember tears at the ultipate Please nothing less we'll do,
Speaker 3: and we'll look forward to your company. Same time again
Speaker 3: as next week. Enjoy your evening. Sunday at six is next.
Speaker 1: For more from the Weekend Collective, listen live to news
Speaker 1: Talks be weekends from three pm, or follow the podcast
Speaker 1: on iHeartRadio