Speaker 1: You're listening to the Weekend Collective podcast from News talks'd be.
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Speaker 1: there's only so long you can wait for the chorus
Speaker 1: in a song, and it wasn't coming. But this welcome
Speaker 1: to the back to the show. I'm Tim Beverages. This
Speaker 1: is the Weekend Collective that a starburst by the fonte
Speaker 1: of the Fontaines. And what we're trying to do is
Speaker 1: with I guess just bit of fun is you know,
Speaker 1: find out what they're preferred tuns, which is why you
Speaker 1: heard yesterday a little bit of motive was the creatine
Speaker 1: of the property here anyway, joining me today it is
Speaker 1: a financial specialist and author Ian Morale. Hello, Amanda, how
Speaker 1: are you doing?
Speaker 4: Leice deceited?
Speaker 1: Now we're going to talk about the topic we're talking
Speaker 1: about today and we want your calls on eight hundred
Speaker 1: and eighty ten eighty in text nine two nine two,
Speaker 1: and the conversation is really around milestones and what your
Speaker 1: financial milestones have been through life. Did you aim for
Speaker 1: your milestones? And I need to be this is what
Speaker 1: I want by my thirties, this is what I want
Speaker 1: by my forties and my fifties, which sounds incredibly organized.
Speaker 1: I can imagine a lot of you listening going, God,
Speaker 1: I'd never thought of it in those terms. But there
Speaker 1: might be those of you who did have financial milestones
Speaker 1: for the generations or are you feeling that you are
Speaker 1: playing catch up? And so if you are playing ketchup,
Speaker 1: we're going to address some of the things that maybe
Speaker 1: you can do when you sort of think, oh gosh
Speaker 1: that that horse has bolted and I'm miles behind. So
Speaker 1: just for a few figures for you, and Amanda's going
Speaker 1: to chip in in just a moment with some interesting
Speaker 1: stats about our savings. But the average hourly wage in
Speaker 1: New Zealand's forty two bucks an hour, roughly annually eighty
Speaker 1: eight thousand dollars a year. The average home is worth
Speaker 1: nine hundred thousand, average mortgages three hundred thousand, average key
Speaker 1: we save with thirty seven thousand depending on your age,
Speaker 1: but average this and average that it can Actually I
Speaker 1: think when people hear stats, they either feel like they're
Speaker 1: well behind or maybe you have a moment of feeling
Speaker 1: pretty slight smug. But if you're feeling that far behind,
Speaker 1: how do you catch up and how do you go
Speaker 1: about genuinely changing your mindset? So we'd love to hear
Speaker 1: from you about milestones and are you keeping up with
Speaker 1: yours and how have you set them? But to discuss it,
Speaker 1: Amanda Morale's with us and Amanda, you've got some other
Speaker 1: stats around, which is this is going to make us
Speaker 1: feel not so flash?
Speaker 5: Is it?
Speaker 1: Because we've got savings rates in New Zealand the average
Speaker 1: saver and you've got some stats around comparing us with
Speaker 1: Australia and I get the feeling that they are going
Speaker 1: to be big brother in every respect on this one?
Speaker 1: Are they?
Speaker 4: I know? So this is kind of coincidentally on the
Speaker 4: heels of that survey comparing how happy Australians are versus
Speaker 4: New Zealanders and we got slammed in that regard. We're
Speaker 4: not as happy as you can imagine. And for a
Speaker 4: whole number of reasons. But when it comes to financial
Speaker 4: sort of comfort and preparation for retirement were well behind
Speaker 4: our Aussie peers and.
Speaker 1: So is so is this all because of super you're
Speaker 1: talking about serving separate to.
Speaker 4: That, Well, I'm talking about superannuation, which is most people's
Speaker 4: primary savings vehicle, and you may be surprised. And I
Speaker 4: don't like averages. I'll have to just kind of I
Speaker 4: prefer medians, but I'm working with averages today. But so,
Speaker 4: the average for men over way Upond in Australia is
Speaker 4: one hundred and eleven thousand. That's for men people.
Speaker 1: But anyway, that's not well, you know, it.
Speaker 4: Does seem very high compared to what men in New
Speaker 4: Zealand have and their KISA accounts by comparison, which is
Speaker 4: forty two two thousand on average. But what's what's what's
Speaker 4: really sort of clawed me when I looked into the
Speaker 4: data and compared it with some other countries as well,
Speaker 4: is that women by comparison on average have sixty eight
Speaker 4: across the pond thousand and women here and their keys
Speaker 4: havever AC counts have on average thirty four. So between
Speaker 4: those two countries, as long as a thirty eight percent
Speaker 4: gap with men and women in Australia and a twenty
Speaker 4: five percent gap here. But regardless, we are well behind
Speaker 4: or Australian counterparts for a number of reasons. So and
Speaker 4: it was a similar pattern in Canada, the UK, the
Speaker 4: US with men well had usually by a minimum of
Speaker 4: twenty five percent in the savings department compared to men's
Speaker 4: So there's a separate issue here with gender divide, So
Speaker 4: we can maybe tackle that. But when you asked, you know,
Speaker 4: what's your milestone? Where are you aiming for? You know,
Speaker 4: I think the first thing is you should have a goal,
Speaker 4: You should know where you're at.
Speaker 1: Did you have a milestone when you were a as
Speaker 1: a young woman? But did you think did you think
Speaker 1: it through and go you know what, by the time
Speaker 1: I'm thirty, I want to have saved up this amount
Speaker 1: of money, and by the time I'm forty, I want
Speaker 1: to have I don't know, maybe I'll hopefully own a
Speaker 1: home or of course we have personal goals as well
Speaker 1: as to you know, relationships and all this stuff, but
Speaker 1: did you have financial goals?
Speaker 4: You know, I don't think I was born thinking I
Speaker 4: wanted to be a billionaire or anything like that and
Speaker 4: I would have fallen short anyhow if that was the case.
Speaker 1: But but but.
Speaker 4: There is really something to that mindset if you want
Speaker 4: to then achieve and work towards that goal. But no,
Speaker 4: I think for me, when it became, you know, a homeowner,
Speaker 4: you know the goal for me when you start to
Speaker 4: look at how much you're going to be just paying
Speaker 4: off the interest alone and not the capitol, and you
Speaker 4: see how much that house really costs you. For me,
Speaker 4: I became very driven about I would like to become
Speaker 4: mortgage free, and so that was sort of my focus.
Speaker 4: I'm again one of these sticky note junkies. Always in
Speaker 4: my book, this is what I want to achieve, you know.
Speaker 4: So I again I think is important whilst you're assessing
Speaker 4: any sort of goals, but especially financial, to articulate them
Speaker 4: really clearly, have the like visibly in front of you.
Speaker 4: You know, did you ever sticky notes mirrors? You know?
Speaker 1: When did you buy a house?
Speaker 5: Then?
Speaker 4: I had my first house back in Canada. Gosh, I
Speaker 4: got to go back here now, but just time just
Speaker 4: to come for the birth of the birth of my son.
Speaker 1: And I don't say how many years ago, A long.
Speaker 4: Time ago, twenty two over twenty years ago, so that
Speaker 4: you know, and I wasn't ancient at the time.
Speaker 1: The reason I was digging into that, apart from just
Speaker 1: being generally nosy, is because I was while you were
Speaker 1: talking about it. I thought, did your decision around I
Speaker 1: want to become mortgage free or I want to have
Speaker 1: a house? Did it come about because you had planned
Speaker 1: or thought about this by a particular age you wanted
Speaker 1: to do it, or did it come about And this
Speaker 1: is a question for you if you're listening as well.
Speaker 1: Did your financial goals simply come about because you thought,
Speaker 1: I'm paying all this money in rent and this is silly,
Speaker 1: I should buy a house. And then when you buy
Speaker 1: a house, you go, gosh, if I keep this mortgage
Speaker 1: going for thirty years, I'm going to spend all this
Speaker 1: money on interest. Therefore, I'm going to set a goal.
Speaker 1: So what I mean is I'm turning my question that
Speaker 1: I started with on its head. That some people might
Speaker 1: have goals about where they want to go, but maybe
Speaker 1: those goals that we arrive at are simply driven by
Speaker 1: financial realities that hit us as we're moving through life.
Speaker 4: So yeah, I agree, I think there's a bit of
Speaker 4: both there. I think some people may you know, just
Speaker 4: got this burning desire from a young age, or this
Speaker 4: particular event happens in their life that they determine this
Speaker 4: as the course I'm going on. Equally, the moment of
Speaker 4: sort of plotting that path may arrive when you sit
Speaker 4: down and you look. You have that moment of shock
Speaker 4: when you realize how much, again like the mortgage, for example,
Speaker 4: how much you're being an interest before you even touch
Speaker 4: the principle and what you owe. So that becomes a
Speaker 4: very motivating factor for anybody who's done those numbers and
Speaker 4: then really lights of fire under your butt to move
Speaker 4: things forward, because I think at the end of the day,
Speaker 4: most people you aspire towards financial independence and freedom, and
Speaker 4: that is the ability to do what you want want
Speaker 4: to do it. And you know, if you're in a
Speaker 4: miserable whatever it is, job, marriage or something, having the
Speaker 4: you know, the the capacity to say okay, I'm not so,
Speaker 4: you know, having that freedom to take that action is
Speaker 4: muchly enriched by having your bank account at a certain
Speaker 4: yeah status.
Speaker 1: Muchly, I love that.
Speaker 4: I appropriate words, it's quick enough.
Speaker 1: But now I love that because Muchley is sort of
Speaker 1: part of the New Zealand Mexican.
Speaker 4: Is it I apologize for making Dan this maybe I've inherited.
Speaker 1: Well actually because what that you? I'm sure you have
Speaker 1: because I think actually there are certain milestones that are
Speaker 1: more generically accepted by different For instance, I would say
Speaker 1: that a lot of people would give a lot of thought,
Speaker 1: regardless of their optimism about reaching the target, about what
Speaker 1: a sixty five look like for them, because the obvious
Speaker 1: milestone is where am I going to You know, what
Speaker 1: are my one of my go was going to be?
Speaker 1: Or how much money do I want to have? Or
Speaker 1: what's my minimum standard of what I want to have
Speaker 1: achieved by sixty five, which would be I would say
Speaker 1: for many people, they would hope that at the bare
Speaker 1: minimum that they would have paid their mortgage off if
Speaker 1: they've been lucky enough to buy a house. But you know,
Speaker 1: it's almost like you trace that backwards, Whereas I don't
Speaker 1: think i'd know many people, or would have known anyone
Speaker 1: who expressed any particular goal in their thirties or their
Speaker 1: twenties about this is what I want to do. That's wondering.
Speaker 1: Have you ever had a moment where it's kicked in
Speaker 1: for you? You go, right, Okay, ten years time I need.
Speaker 4: To do this again. I think for me, the you know,
Speaker 4: the wake up moment was becoming a homeowner when you
Speaker 4: owe a lot of money and you see, you know
Speaker 4: you're going to be married to your bank for many
Speaker 4: many years before you have that point of financial freedom.
Speaker 4: So that that was a very motivating factor for me personally.
Speaker 4: I mean, you know, goals are goals, right, so they're
Speaker 4: not just financial. I mean maybe your goal is I
Speaker 4: want to see X number of countries before the time,
Speaker 4: you know, before again, but you know you might become
Speaker 4: a travel writer and figure out a way to do
Speaker 4: that for free. Things cost money exactly. So what of
Speaker 4: those goals are you know you are going to have
Speaker 4: to come up with a plan to achieve those goals
Speaker 4: or to get there, and that may be in tandem
Speaker 4: with you know, having your house by mortgageree by sixty
Speaker 4: year or whatever it is. It's highly individualized. I mean,
Speaker 4: did you have a burning desire to achieve x.
Speaker 1: By Well, well, that's the thing I mean I went
Speaker 1: in for I threw up away every everything in terms
Speaker 1: of financial practicality when I had a career in the arts,
Speaker 1: when I decided I want to I want to go
Speaker 1: on the stage, and so I got used very quickly
Speaker 1: to the idea of financial instability of although, funnily enough,
Speaker 1: my first few gigs, I think my first gig is
Speaker 1: a singer. I got paid more than I was earning
Speaker 1: as a lawyer, but that's not saying a lot. So
Speaker 1: it was just a first year, second year's staff solicitor.
Speaker 1: But yeah, it's it's a difficult one to put my
Speaker 1: finger on because I became everything financially is a struggle
Speaker 1: when you're work trying to make a career in the arts.
Speaker 1: So I don't know what particular goal I had. I
Speaker 1: probably have my wife to think that when we got
Speaker 1: when we had our first child, that you know, she
Speaker 1: was driving the move to with let's think about buying something,
Speaker 1: and we were very lucky the way that worked out.
Speaker 1: But yeah, because I was I'll be honest, I think
Speaker 1: I was pessimistic. I thought, God, I'm screwed and less
Speaker 1: and I kept on thinking, at some stage I'll work
Speaker 1: something out. But I never really came up with a
Speaker 1: particular plan, which.
Speaker 4: Is you know, you know how to details go well,
Speaker 4: somebody in the relationship usually well, I'm surprised it is women.
Speaker 1: No, I am actually the I'm the details guy on things,
Speaker 1: but I just for many years I was following a
Speaker 1: different priority. And so the worst, the best advice I
Speaker 1: never listened to was when I was in Melbourne with
Speaker 1: a show called Sunset Boulevard and I don't know how
Speaker 1: I met. I think I signed up with a bank
Speaker 1: and I met the guy, the bank manager, and for
Speaker 1: some reason, it was the end of the day and
Speaker 1: he said, oh, whereabouts you living? Because I was about
Speaker 1: to catch stream, says I'll give you a lift, and
Speaker 1: as he's driving home, he said, the best advice I've
Speaker 1: ever got, and this is the advice I ignored. He said,
Speaker 1: you should try and buy a house in Melbourne while
Speaker 1: you're earning good money. I remember thinking, ah, yeah, maybe,
Speaker 1: but god if I wish I'd taken that advice.
Speaker 5: But yeah, I know.
Speaker 4: Hindsight twenty twenty.
Speaker 1: Hindsight for me, actually, the most important thing to setting goals,
Speaker 1: I think was it's only just recently even it's just
Speaker 1: getting good information. So I've just restructured my mortgage a
Speaker 1: little bit and paid a big chunk off from my business.
Speaker 1: And I actually made that decision and have determined a
Speaker 1: few goals by chat GPT. I put it into chat
Speaker 1: GPT and I literally said, I've got this amount sitting
Speaker 1: in my business account. I'd like to still be able
Speaker 1: to use it, but I've got this on my mortgage
Speaker 1: and I'm paying this off. Can you give me some
Speaker 1: different scenarios on what would work and what would help
Speaker 1: me pay the mortgage off quicker without me having to
Speaker 1: be too you know, with that too radical a change.
Speaker 1: And it came up with all these scenarios.
Speaker 4: I've got to say, I use it all the time.
Speaker 1: Wow, It's incredibly powerful.
Speaker 4: Great for scenario testing. You need to kind of check
Speaker 4: it against you know, don't bet your house on chats, correct,
Speaker 4: But no for for that kind of those kind of
Speaker 4: things that are brilliant again for if for for those
Speaker 4: of you who are struggling to figure out how much
Speaker 4: they're going to need for retirement based on their current
Speaker 4: contribution rates, et cetera. I mean, Chat and AI is
Speaker 4: just as only as good as the prompt. So if
Speaker 4: you instruct it intelligently about the different scenarios that you're
Speaker 4: kind of exploring mentally, it can come up with some
Speaker 4: very good solutions. And so that takes a lot of
Speaker 4: the pain away because I think is king, isn't it
Speaker 4: one hundred percent? And I think a lot of people,
Speaker 4: particularly in New Zealand, are very reluctant to get paid
Speaker 4: to pay a financial advisor or if they are probably
Speaker 4: getting stung in really high fears. So this is going
Speaker 4: to be a real moment for everybody out there who
Speaker 4: wants to get a bit more confident in their finance.
Speaker 1: For instance, looking at that milestone question back when I
Speaker 1: I mean I was, I did worked in Australia for
Speaker 1: a few years in musical theater, and I had there
Speaker 1: was a compulsory pension scheme I paid no attention to,
Speaker 1: which is actually funny enough. I didn't put there wasn't
Speaker 1: much put into it over the years, but I look
Speaker 1: at how much it's grown. But if I had actually
Speaker 1: bothered to or got advice about, say, for instance, if
Speaker 1: there was a chat GPT back then and I'd said, hey,
Speaker 1: I want to have a million dollars in my bank
Speaker 1: account by the time I'm sixty or sixty five, how
Speaker 1: much do I need to start putting away now, assuming
Speaker 1: a growth rate of such and such percent, it would
Speaker 1: have given me an answer that probably would have made
Speaker 1: me think, gosh, that's actually quite doable. Maybe I should
Speaker 1: make that sacrifice as opposed to thinking I needed a
Speaker 1: million dollars one or a time. Where do I begin?
Speaker 4: Yeah, and then you just spend every mony all your
Speaker 4: money at the pub.
Speaker 1: Yeah, exactly.
Speaker 4: So now you can have some hard numbers to hang
Speaker 4: your hat on, or at least some soft numbers to
Speaker 4: work towards, and so use it. It's a great tool.
Speaker 4: Again there, I always harp on about SWORTED, but I
Speaker 4: was on there again before the show, and they keep
Speaker 4: updating their calculators. So you know, if you're trying to
Speaker 4: test the limits about what you know at your current rates,
Speaker 4: where you're going to be and how much can you
Speaker 4: spend and how much will New Zealand super be On
Speaker 4: top of that, feed all those numbers in, you're going
Speaker 4: to get some really good indicative results that will tell
Speaker 4: you, you know, you've got to do a better job saving equally.
Speaker 4: I love to experiment, and I would encourage people to
Speaker 4: do it. You know, the difference over time of contributing,
Speaker 4: you know, for six, eight, ten percent of your income
Speaker 4: towards UKV siviies huge differences over time because of compound interest.
Speaker 4: So I think if people kind of just gain feed
Speaker 4: on that information. It may spur them on to make
Speaker 4: more immediate decisions, which you know, time is your friend
Speaker 4: when you're investing, So don't wait until you're fifty five.
Speaker 4: You know, if you're in your forties or younger listening
Speaker 4: to this, you know, start just exploring. It doesn't take
Speaker 4: a long time. You don't have to sit down and read,
Speaker 4: you know, toms of novels on personal finance. This stuff
Speaker 4: is readily at your fingertips now, so great for young
Speaker 4: savers who are interested in goal setting.
Speaker 1: So we'd love to hear from you on this. What
Speaker 1: are your financial milestones? Have you ever actually had a
Speaker 1: financial milestone a little bit like what we Amanda and
Speaker 1: I talked about that you when you realize how much
Speaker 1: you're paying in renting, you think, goodness, may I should
Speaker 1: be putting this into a house. Or you realize, gosh,
Speaker 1: I've been paying all some mortgage. Maybe I should try
Speaker 1: and pay out off quicker and I'll save. How much?
Speaker 1: Did you have financial milestones you aim for? But if
Speaker 1: you're paying catch up, We're going to dig into that
Speaker 1: a little bit as well.
Speaker 5: Us.
Speaker 1: I think most people probably, I would say, be interesting
Speaker 1: that if we could do a formal survey on this
Speaker 1: on how many people feel they're playing financial financial catch up,
Speaker 1: I'd love to know what those results would be. But
Speaker 1: I bet you it's quite significant. We're going to significant.
Speaker 1: We're going to dig into that. But yes, from you,
Speaker 1: how did you assess your financial milestones? And yeah? Or
Speaker 1: is it different? Do you just find that you stumble
Speaker 1: across goals as you live go through life? Oh wait,
Speaker 1: one hundred and eighty ten eighty text nine two nine two.
Speaker 1: It's a twenty four past five news talks. He'd be,
Speaker 1: it's welcome back news talks. There'd be there's a Smart
Speaker 1: Money the weeking on the weekend collective and Beverage. My
Speaker 1: guest is a financial specialist and author and commentator of Amanda Morale.
Speaker 1: We're talking about how important it is to have financial milestones.
Speaker 1: Did you have financial milestones and did you manage to
Speaker 1: achieve them or did you just find you stumbled across
Speaker 1: your goals as you lived life? Give us a call
Speaker 1: on eight hundred eighty ten eighty just before we go
Speaker 1: to we'll continue the conversation. Douger's text is saying, I
Speaker 1: think this is sort of probably indicative of quite a
Speaker 1: few blocks. I had three goals as a young man.
Speaker 1: One was earn enough to attract a woman interesting. I
Speaker 1: think invest in personality is a good idea too, to
Speaker 1: get to the point of no reliance on state funding
Speaker 1: for anything. Okay, yep, and three payin no tacks. He's
Speaker 1: achieved the first two, he said, dear. By the way,
Speaker 1: did I have to tease you just lightly? Because when
Speaker 1: you gave the information website, I've misheard you. I thought
Speaker 1: you were advertising something that sounded a bit naughty when
Speaker 1: you said go to your accent assorted, and I thought
Speaker 1: you said sordid as a dirty You're familiar, you have
Speaker 1: this know, But I was just like I heard. When
Speaker 1: I listened, I thought, all right, yes, sorted sort of
Speaker 1: dot org dots in.
Speaker 5: That's right.
Speaker 4: It's got such great retrees, so I highly recommend it's free,
Speaker 4: and you've got your friend chat.
Speaker 1: And by the way, if you're listening and you want
Speaker 1: to know where you sit with everyone else, because sometimes
Speaker 1: they're having a bit of a comparison, can well it
Speaker 1: might not be good news if you're matching everyone else
Speaker 1: in your age group. But we're going to dig into
Speaker 1: some of the key we save with data as well
Speaker 1: darted data. Right, let's take our first call, Jam.
Speaker 3: Hello, Hi, I'm a bit nervous.
Speaker 1: Oh, you'll be fine. It's just you and me and Amanda.
Speaker 3: My mum and dad used to work, and Mom had
Speaker 3: me for one week at the school holidays and dad
Speaker 3: the other week. And when I was with Dad, i'd
Speaker 3: go down the local head dresser by him. And at
Speaker 3: the age of eleven, I decided I wanted to have
Speaker 3: a be a hairdresser, and by salon, I ended up
Speaker 3: having about three or four salons, not at once, and
Speaker 3: with the money I made from that, I was the
Speaker 3: dumb Dora of the family. With the money from that,
Speaker 3: my dad found a little state unit that I bought
Speaker 3: and would have paid off by the time I was
Speaker 3: forty one, and I am now seventy five living in
Speaker 3: the Ryman's Village. My family has been amazing and I'm
Speaker 3: just very fortunate.
Speaker 1: I can hear a little bit of emotion in your
Speaker 1: voice because you're feeling a bit of grateful for having
Speaker 1: such great family and all that sort of thing is
Speaker 1: that's what's sort of triggering you think about your lovely,
Speaker 1: lovely family and the great advice you got from your dad.
Speaker 3: Yes, I borrowed two thousand dollars off them, and now
Speaker 3: I'm in the village. I paid it all back. I
Speaker 3: paid it all back.
Speaker 4: Was it?
Speaker 1: Do you look at back and go thanks Dad, great
Speaker 1: for helping me. But you you did the hard work.
Speaker 1: You had all those salons, you got some money in
Speaker 1: your bank, and you got some advice from your dad.
Speaker 3: I must tell you one thing. My dad did all
Speaker 3: the book work until he died, and then I had
Speaker 3: a good accountant. But my dad used to go away
Speaker 3: overseas with mom on holidays. When they'd come back, he'd say, oh, Jane,
Speaker 3: you've done us again, And I'd say, what's I done?
Speaker 3: He's you paid on the invoice and the statement, Oh.
Speaker 1: Well you're in credit. You were in credit. I was, actually, Jane.
Speaker 1: It's lovely to hear from you. And how long you
Speaker 1: been in Rhyman for.
Speaker 3: Five years?
Speaker 6: This month just gone good stuff and it's wonderful good
Speaker 6: and sounds like you're you're feeling gratitude for that as well.
Speaker 6: Isn't it funny when you can be triggered with a
Speaker 6: bit of emotion when you suddenly realize, oh my goodness, you.
Speaker 4: Know, I get it. Because family and you know, relatives
Speaker 4: or friends who can mentor you along the way. It
Speaker 4: can make such an incredible difference to your quality of
Speaker 4: life over the years. So there's so much to be
Speaker 4: said for that.
Speaker 3: I had such good Christian which term is not keen on,
Speaker 3: but they were good Christian, living parents, goodales. How many
Speaker 3: times I let them down? I just carried on.
Speaker 1: I almost want to make you call of the Week
Speaker 1: if we had such a prize. But I appreciate you calling.
Speaker 3: Thank you so much, Thank you so much.
Speaker 2: Take care.
Speaker 1: Oh, I think because Jan's heard me say that I'm
Speaker 1: an atheist, I'm not anti. I'm not anti. Well some
Speaker 1: religions are the anti theism, but no, she's just referring
Speaker 1: the fact that I'm.
Speaker 4: Not religious, not worshiping anywhere.
Speaker 1: No, No, although of course I wiship my wife and
Speaker 1: my family.
Speaker 4: There you go, right answer.
Speaker 1: Actually, you know what she's nailed there. And I've realized
Speaker 1: that financial got milestones and all that. It's all a
Speaker 1: bit intimidating. But I mentioned it just with chat GPT
Speaker 1: and Jan mentioned it with getting the mentorship of her father,
Speaker 1: and I mean, it's quite funny. Paying the voice on
Speaker 1: the statement she obviously liked to pay her bills. But
Speaker 1: at the heart of it, your first financial milestone, and
Speaker 1: it's not for me to lecture, but I'm going to.
Speaker 1: It should be financial literacy. You should just know what
Speaker 1: the stakes are.
Speaker 4: A percent, and that's something that continually gets raised as
Speaker 4: being a big problem in New Zealand. People still don't
Speaker 4: even understand the basics of KiB sever and it's been
Speaker 4: going since two thousand and seven. So but you know what, again,
Speaker 4: I think with AI it really could prove to be
Speaker 4: transformative for people's finances. Again, you have to kind of
Speaker 4: understand there's still people kind of holding back at the
Speaker 4: edges because they don't they think that they're intimidated, bitter
Speaker 4: or whatever. They just need to kind of get into it,
Speaker 4: ask a few questions, refine those questions, and get confident
Speaker 4: with the prompts, because really the greatest output is in,
Speaker 4: you know, the questions that you're asking, So it's more
Speaker 4: about those you get some clever answers.
Speaker 1: Well there's a second and maybe it's a maybe there's
Speaker 1: the lessons you should learn. I don't want to and
Speaker 1: I would already smug about this. We don't want to
Speaker 1: lecture people about things, but the question around milestones. But
Speaker 1: the other one is you've just I think you've got
Speaker 1: to overcome your fear, because I think a lot of people,
Speaker 1: if you're feeling you might be behind the eight ball,
Speaker 1: they don't ask the question because they don't really they
Speaker 1: think that what they hear might not be what they
Speaker 1: want to hear. It's fear.
Speaker 4: And I say this all the time. The twin enemies
Speaker 4: of personal finance are fear and procrastination because quite often
Speaker 4: people are fearful and then they'll put off doing what
Speaker 4: they ought to be doing. And you know, what they
Speaker 4: ought to be doing, it might not be as as
Speaker 4: scary as they think, and the difference over time could
Speaker 4: be huge. You know, something as simple as putting in
Speaker 4: four percent into your quips ever rather than three if
Speaker 4: you can afford to do it, those kind of things.
Speaker 4: I mean again, I really encourage people to explore some
Speaker 4: of the scenario testing that you can do and sort
Speaker 4: it dot org, dot n Z or through chat and
Speaker 4: look at the differences. Equally, experiment with the different fund
Speaker 4: tapes that you can be invested in and the dollar
Speaker 4: figure difference that will make over time because of compound interest.
Speaker 1: Yeah, actually, yeah, and as I mentioned for me that
Speaker 1: just simply when I literally when I asked chat GPT,
Speaker 1: I thought, because they've got a voice function now, and
Speaker 1: I thought, oh, and I've typed it and initially and
Speaker 1: just came up. But then the end I dictated and
Speaker 1: tooked to normal language and said this is what I want,
Speaker 1: and it spat out what it thought. My question was,
Speaker 1: have I got this right? Are you asking me x
Speaker 1: Y and Z would you like me to put together
Speaker 1: some scenarios? And I said yes, I've got to say
Speaker 1: I'm a convert.
Speaker 4: Well, can you can imagine what it's going to be
Speaker 4: like in five years from now? I'm I mean, I've
Speaker 4: got a version on my phone that's free. I downloaded
Speaker 4: being it's got this co pilot thing. You can talk
Speaker 4: to it. It talks back to you. So if you're
Speaker 4: on a dog walk or whatever, you know, what would
Speaker 4: you like to know? I always have these thoughts in
Speaker 4: my head, So I'm like, we're asking this, asking that,
Speaker 4: and you know, so you don't. It's really blowing apart
Speaker 4: the rules of what people used to think they needed
Speaker 4: to do to get themselves financially. It's so tort or informed.
Speaker 1: It's so good. Because it's so good. I was almost
Speaker 1: worried about hurting its feelings when it misunderstood me. Because
Speaker 1: you choose the voice, and the first voice that presented
Speaker 1: to me, I thought, I don't like this dickhead, so
Speaker 1: I chose I've got. It's a young woman with a
Speaker 1: slightly not cockney accent, but it's an English act. She's like, Hi, Tim,
Speaker 1: how are you sort of talking about? She goes, thanks
Speaker 1: for asking, but that's funny. You end up I think
Speaker 1: I even say sorry. I think I'm the sunder.
Speaker 4: You're in a relationship ten years from now? Where is
Speaker 4: it going?
Speaker 2: Hey?
Speaker 1: Now, I did say we were going to give some advice,
Speaker 1: some info on where are we at with our New
Speaker 1: Zealand ki we savers?
Speaker 4: Right, So I earlier shared what some of the our
Speaker 4: Aussie cousins are doing with their savings. But if you
Speaker 4: come back home and look at the categories by age,
Speaker 4: so in the twenty six to thirty year olds, you
Speaker 4: know they're well under average savings of TWENTI smoted right
Speaker 4: around the eighteen thousand dollars mark, and again.
Speaker 1: All along, so who's got eighteen thousand dollars?
Speaker 4: These are twenty six to thirty year olds, so you know, yeah,
Speaker 4: they've only been working well, they've only been working you
Speaker 4: know whatever, ten years. I guess if you're going right
Speaker 4: out of you know, tertiary, some people start longer. So
Speaker 4: but again, women are well behind. They're usually they're about
Speaker 4: twelve thousand, whereas the men are about maybe fifteen eighteen,
Speaker 4: and then you know, it goes up in increments of
Speaker 4: about five thousand or after. So the average let's take
Speaker 4: what your category fifty fifty one. If I'm guessing tim here,
Speaker 4: you know you do look thirty one, but fifty one
Speaker 4: to fifty five. So men are up there on average
Speaker 4: at fifty and women are actually blow at probably about
Speaker 4: thirty seven. So this is where it gets a bit.
Speaker 4: I'm surprised bumpy for women because but you can imagine
Speaker 4: during those years somewhere in between, you know, the late
Speaker 4: thirties seven have children. Yeah, there's gaps, you know.
Speaker 1: Yeah, I'm surprised that we're not seeing more of the
Speaker 1: influence of compound interest in there because of how it
Speaker 1: can grow, because we're just talking about increments of fifty grand.
Speaker 1: But is that also because the older generations have not
Speaker 1: been in key we saber can we save, it goes
Speaker 1: back on and how long did have that is.
Speaker 4: Two to two thousand and seven was when it was introduced, Okay,
Speaker 4: so yeah, I mean that Again, Australians on average get
Speaker 4: paid more than us, so that puts them ahead. And
Speaker 4: they been at the savings game far longer than we have,
Speaker 4: so that also accounts for some of the differences there.
Speaker 4: But again and their contribution rate is closer to twelve percent.
Speaker 4: So some of the things that the regulators are considering
Speaker 4: are you know, making it compulsory right now, it's a
Speaker 4: soft option, auto enrollment, you can get out after three
Speaker 4: months if you don't want to be in it. And
Speaker 4: you know where our minimums are so low, they're half
Speaker 4: of what people are contributing over you know, across the Tasman. Likewise,
Speaker 4: in other countries, sort of the general theories that you
Speaker 4: should be, you know, at the minimum, putting away ten
Speaker 4: percent of your gross earnings to get it up there.
Speaker 4: I find that again relative to the financial literacy levels
Speaker 4: of Canada, the US, the UK, you know, we're still
Speaker 4: a little bit behind in those terms, so we do
Speaker 4: have a long way to go. The conversation is out there,
Speaker 4: which is encouraging but again, you know, don't wait for
Speaker 4: the government to force you to do this or that.
Speaker 4: I think, take account of your own future and look
Speaker 4: at some of the scenarios. If you can afford to
Speaker 4: contribute more, do it. Make sure you're in the right
Speaker 4: fund type for you know, your savings goals, and just
Speaker 4: get yourself on track. And don't, like you said, if
Speaker 4: you're fearful, the worst thing you can do is put
Speaker 4: your head in the sound and think this is all
Speaker 4: all the way. It just doesn't get better asking for
Speaker 4: a friend.
Speaker 1: You know, hey, look, actually, if you know what I'd
Speaker 1: love to know, I'd love to know how many people
Speaker 1: that you can just call and text us on this.
Speaker 1: I mean ten percent. I wonder how many people are
Speaker 1: actually sticking away ten percent of their income because when
Speaker 1: you look at because that's after texts, I guess ten
Speaker 1: percent of after text income, I'm guessing.
Speaker 4: Ten percent gross is sort of I mean, there's no
Speaker 4: golden rule. There's just ballparks or recommended sort of idea,
Speaker 4: you know, suggested amounts. Right, But again, everybody's situation is
Speaker 4: going to be a little bit different.
Speaker 1: So see, that's that's why it doesn't fit all. I
Speaker 1: guess my thing I've come up with. I've worked out
Speaker 1: that really the best thing I can do is cane
Speaker 1: my mortgage as quickly as I can and then raally
Speaker 1: stick the money into it. I mean, I guess because
Speaker 1: if you are taking that money off your mortgage, say
Speaker 1: if you are paying six ish percent, between five and
Speaker 1: seven percent for most people, I think, then you have
Speaker 1: to if you are putting that in savings, you'd want
Speaker 1: that money to be making more than that because you
Speaker 1: have tax to pay on that. It's hard to earn
Speaker 1: that return, isn't it. So are you better to pay
Speaker 1: it off your mortgage if you can?
Speaker 4: As many people who argue that there's no better return
Speaker 4: on investment than hammering your mortgage as fast as you can,
Speaker 4: and then you know, then put yourself in that savings
Speaker 4: position where you're invested.
Speaker 1: Maybe I'll ask chat GPT in the break, but I'll
Speaker 1: get her to change your accent to French and speak
Speaker 1: in French or something.
Speaker 4: Just make it educational.
Speaker 1: Anyway. I'd love to know from you. But about your plans.
Speaker 1: We've got a few texts on this. We're going to
Speaker 1: dig into the milestones. But the more I'm learning about
Speaker 1: this chatting with Amanda to me the milestones. The first
Speaker 1: milestone you should have is understanding financial literacy and so yeah,
Speaker 1: that would be my one. Anyway, we're going to take
Speaker 1: a break, come back and just to take it's well,
Speaker 1: gosh time it's flying, isn't it? Eighteen and a half
Speaker 1: to six News Talks it'd be yes, Welcome back to
Speaker 1: the show. Tim Beverage with a Madame Morale talking about
Speaker 1: financial milestones. What are the milestones you should set for
Speaker 1: yourself and have you managed to do it? But also
Speaker 1: just the quick question on how much you've been sticking
Speaker 1: away and your key we save it because received wisdom,
Speaker 1: which is a way of saying that's what we think
Speaker 1: is good common sense, but receive wisdom. Of course from Amanda,
Speaker 1: is that ten percent? Really it should be a gold
Speaker 1: should aim for and let's take some calls on that.
Speaker 2: Kevin, Hello, yeah, hi guys, I just wanted to pouring
Speaker 2: out for me. Fine. I was a bit slow getting
Speaker 2: in the sea. We'd say were by about ten years.
Speaker 2: And when I got into it, I was doing its money.
Speaker 2: So I put mine out. But can you imagine if
Speaker 2: you made it compaltry, how much more poppy they would
Speaker 2: be in this country.
Speaker 1: Well, yes, I mean in terms of people not being
Speaker 1: able to have money for other things.
Speaker 4: Yeah, no, it's a it's a fair point you raised,
Speaker 4: and I actually this will be the first time I've
Speaker 4: going on record saying this, but I'm not for that reason.
Speaker 4: I do have concerns about it being compulsory, just because
Speaker 4: there's some people who simply are struggling to get their
Speaker 4: kids to school with breakfast in their bellies. So I
Speaker 4: agree there are some cases where it might not make sense.
Speaker 4: So it's a tricky word in today's environment.
Speaker 2: I think you'd find there's a lot of cases. Oh look,
Speaker 2: I hell of a lot of New Zealand at the
Speaker 2: moment couldn't afford to put in the key retailer.
Speaker 4: Yeah, well, that obviously would only apply to those who
Speaker 4: could could afford to hit that mark, but you know,
Speaker 4: for for younger people who are in a position and
Speaker 4: they're working and not frittering away all their money on.
Speaker 2: Yeah, I understand that completely. But if they made it compulsory,
Speaker 2: it would increase the probably, right, I really don't know.
Speaker 1: I don't think I don't we advertise, I don't think
Speaker 1: we're advocating for making it compulsory.
Speaker 4: Although some people who are advocated for that, and it
Speaker 4: is an issue that's been raised to as you know,
Speaker 4: something to get us up on par with our asio mates.
Speaker 4: But I agree with you there's a risk there.
Speaker 1: And what have you gotten terms of people? I wanted
Speaker 1: to catch up a few basic sort of ideas for people.
Speaker 4: So your producer, lovely produce attire, thank you for playing
Speaker 4: the Fontaines. I saw them a couple of weeks ago.
Speaker 4: They're amazing, so shout out to you. But she was
Speaker 4: wondering why she's done obviously a very good job, she's
Speaker 4: very an exception to the Rocks, she's doing everything right,
Speaker 4: and she was wondering why her balance was much higher
Speaker 4: than you know, other women her age, and they said,
Speaker 4: you know, would there's a few variables there probably, But
Speaker 4: so step one, if you are feeling like you're behind,
Speaker 4: you know it's a no brainer. Make sure you're paying
Speaker 4: at least one thousand and forty three into your kiserver
Speaker 4: account so you can get the five hundred. That is
Speaker 4: an absolute no brainer. So you should be doing that.
Speaker 4: If you go on matt leave or you've got a
Speaker 4: workplace gap for make sure you're continuing to do that.
Speaker 4: Maybe get your partner to help out if you feel
Speaker 4: like you too stretch to make that to make the
Speaker 4: five hundred and twenty one cut off, if you stop
Speaker 4: working for a few years, contribute that at the bare
Speaker 4: minimum so you're still getting that.
Speaker 1: So you know, that's just that works out to how
Speaker 1: So if you put in how's it? What's this?
Speaker 4: So it's a fifty percent return on your investment rate there,
Speaker 4: So you put in one hundred, one thousand and forty
Speaker 4: three annually, you'll get from the government five hundred and twenty.
Speaker 4: I mean, maybe we'll take that off the table, so
Speaker 4: take it while the going is.
Speaker 1: So that's twenty bucks a week for you in the
Speaker 1: government puts another ten dollars a week, so that's thirty
Speaker 1: bucks a week. I'm going to give that to check
Speaker 1: GPT and see what they come to do for our.
Speaker 4: Kids too if they're you know, and that's the other
Speaker 4: point too. I was going to say, invest from our
Speaker 4: early age. You know, the there's no bigger advantage than
Speaker 4: being a youth when it comes to investing. So the
Speaker 4: earlier you start, because of compound interests, are better off
Speaker 4: you're going to be. So if you're in a position
Speaker 4: to be able to help out your kids or your
Speaker 4: grandparents can help them out, you know, check twenty bucks
Speaker 4: a week into their accounts. They're going to be miles
Speaker 4: ahead of the game and you're setting them up with
Speaker 4: a really good legacy gifts. So the earlier you get
Speaker 4: into it, the better. For women in particular, we talked
Speaker 4: about those prominent differences between superinnuation balances. Women are terrible
Speaker 4: tend to be terrible negotiators when it comes to pay
Speaker 4: and advocating for their own value. And because of these
Speaker 4: wage gap differences, that also is going to put you
Speaker 4: miles behind because obviously you're not getting as much into
Speaker 4: your kibisaver accounts. So for women, particularly the young woman,
Speaker 4: I'm sure Tyra is an exception. Again, make sure that
Speaker 4: you're getting some really good mentoring there on demonstrating your value.
Speaker 4: A couple more things. Educate yourself on finances, read learn
Speaker 4: as much as you can. It's not as intimidating as
Speaker 4: boring as you might think. It will be quite fun,
Speaker 4: especially when you're on the winning side of finances. And again,
Speaker 4: separate your emergency fund from your savings, so make sure
Speaker 4: you've got that, don't isolate it. Don't touch it. It's
Speaker 4: not something you break into when you need to buy
Speaker 4: rounds the bearer. Yeah, well that's that, so then you
Speaker 4: won't have to break into your.
Speaker 1: That's another argument. We can spend an hour and actually
Speaker 1: should you be able to break your kep savi because
Speaker 1: there are some financial advice who do not like the
Speaker 1: idea of people breaking the kiisaber to buy a house.
Speaker 1: By the way, thirty bucks a week at five percent
Speaker 1: compounding over forty years. So this is you, as a
Speaker 1: twenty five year old, deciding you're going to stick do
Speaker 1: the government's contribution of ten dollars a week on your
Speaker 1: twenty in forty years time, that's worth two hundred thousand bucks.
Speaker 4: Yeah, I mean, and that's magic. That's a box of
Speaker 4: beer from us kids.
Speaker 1: Yeah, look it's three lattes. Letok tell we might being
Speaker 1: out to squack and a squeeze and a quick call,
Speaker 1: but we're going to take the break. It is nine
Speaker 1: and a half minutes to sex News Talks. He'd be
Speaker 1: he's welcome back. My guest is a mana morale. Gosh,
Speaker 1: time flies and you're having fun. We're going to squeeze
Speaker 1: in one call. We've got time for one more call Jared.
Speaker 5: Hello, Oh good day there, How are you good?
Speaker 1: Thanks?
Speaker 5: Hey, Jared, Hi there. Look, I was listening to the
Speaker 5: previous caller talking about poverty and everything. And while it
Speaker 5: is absolutely true that many people across New Zealand would
Speaker 5: not be able to afford to contribute to KI, we
Speaker 5: say that if it were made compulsory, from my understanding,
Speaker 5: you can go on a voluntary contributions holiday and just
Speaker 5: not put anything in it. You just discussed this with
Speaker 5: your your employer or WINS I suppose, or whoever, And yeah,
Speaker 5: if they take you off the system, you're not You're
Speaker 5: not being forced to put any money in the fund.
Speaker 5: And in fact, that's what I've been doing for the
Speaker 5: past five years or so because well, my plan is
Speaker 5: to buy a house and then go back to keep
Speaker 5: we saver. Obviously I'll use it to contribute. I just
Speaker 5: figured that going on the share market and other such
Speaker 5: things would be a wiser way to try and invest
Speaker 5: in the meantime.
Speaker 4: Yeah, no, thank you for raising that. So that's called
Speaker 4: the saving suspension, and you certainly can do that, although
Speaker 4: I would question why if you're saving for a first
Speaker 4: maybe it's a second home, but a first home, like
Speaker 4: you're invested in the share market, so just curious your
Speaker 4: reasons for choosing another type of investment over a QC.
Speaker 4: Wh if you can still get out the money for
Speaker 4: your deposit.
Speaker 5: Yes, and that is that is that is a plan.
Speaker 5: I will be withdrawing some shares and things like that.
Speaker 5: They have done pretty well well. I'll only withdraw the
Speaker 5: ones that have done well.
Speaker 1: Yeah, good stuff. Okay, Joe, We'll have to leave it
Speaker 1: there because we're just about at the end of the show.
Speaker 1: Thank you so much Amanda for joining us. Yeah, good stuff.
Speaker 1: And if you've missed any of the hours that we
Speaker 1: have had on this afternoon, then go to the website
Speaker 1: look for the weekend Collective. We'll go to iHeartRadio and
Speaker 1: next week, just looking ahead, we have Ashley Bloomfield, the
Speaker 1: former Director General of Health Is with us taking your
Speaker 1: calls on one hundred and eighty ten eighty for the
Speaker 1: Health Hub and of course lots of other exciting guests
Speaker 1: as well, and we'll look forward to your company again
Speaker 1: next weekend. Sunday, Sex is next. Have a great evening
Speaker 1: on the out.
Speaker 3: Of you know, up in the cards chair.
Speaker 2: Let's know.
Speaker 6: You're listen.
Speaker 1: Save you.
Speaker 2: With let's Know what We.
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