WEBVTT - Amanda Morrall: "There's a big difference between theory and practice in finances" 0:00:05.761 --> 0:00:09.401 You're listening to the Weekend Collective podcast from News Talks. 0:00:17.761 --> 0:00:28.681 She didn't around, come on, Happylara now. 0:00:35.441 --> 0:00:38.001 Used Talks. There be Welcome Backett's the Weekend Collective, Roman 0:00:38.081 --> 0:00:40.801 Travers and for Tim Beveridge and this is smart Money 0:00:40.801 --> 0:00:44.841 this hour. Amanda Morrell, Happy New Year. I'm not even 0:00:44.881 --> 0:00:46.801 sure do we still say that. Yeah, there's you, Mike 0:00:46.841 --> 0:00:48.961 switch that Happy new Year exactly. Well, I haven't seen 0:00:49.001 --> 0:00:49.561 you for a while. 0:00:49.961 --> 0:00:51.721 I think it's been a year, so it is a 0:00:51.761 --> 0:00:52.121 new year. 0:00:52.281 --> 0:00:53.481 Wow, has it been that long? 0:00:53.601 --> 0:00:53.961 I think so. 0:00:54.961 --> 0:00:56.921 Now, for those that don't know your dulcet tones of 0:00:57.001 --> 0:00:59.721 we go, I know, well, who was she? She's Amanda 0:00:59.761 --> 0:01:03.761 Morrel and she's a personal finance coach, not actual advice. 0:01:03.961 --> 0:01:04.921 So how would you put this in? 0:01:05.881 --> 0:01:06.121 Yeah? 0:01:06.121 --> 0:01:08.201 I just have to. You know, people are alexcited and 0:01:08.241 --> 0:01:10.761 think they can get free financial advice and non aros 0:01:10.801 --> 0:01:14.441 financial advisor. Please sect a paid financial advisor or an 0:01:14.481 --> 0:01:17.601 authrosiman if you need. I'm just here to share information 0:01:17.641 --> 0:01:19.361 and knowledge with people so they can feel a bit 0:01:19.361 --> 0:01:21.761 more confident exactly about their finances. 0:01:21.801 --> 0:01:23.841 It's about this. It's likely we're about to watch a really, really, 0:01:23.881 --> 0:01:27.201 really bad movie. Please children, get your parents' permission first, 0:01:27.201 --> 0:01:30.921 that kind of thing exactly. So we're into a brand 0:01:30.961 --> 0:01:33.881 new year and a lot of people, well, look who 0:01:33.921 --> 0:01:36.361 doesn't want to have no debt? Who wants who doesn't 0:01:36.401 --> 0:01:39.441 want to be more successful financially? And for those of 0:01:39.481 --> 0:01:41.561 us that sit back and go, wow, look at those 0:01:41.561 --> 0:01:45.401 people making millions on TikTok for example, Well they count 0:01:45.441 --> 0:01:48.281 anymore in the US. But for that stuff that looks 0:01:48.321 --> 0:01:51.441 too easy, and then some people make it look incredibly easy. 0:01:51.481 --> 0:01:54.481 Why do some people have that knack for making money? 0:01:54.681 --> 0:01:58.681 I think the illusion that making money is easy is 0:01:58.761 --> 0:02:01.561 just sad. It's an illusion and reality, the vast majority 0:02:01.601 --> 0:02:04.361 of very wealthy people have made there are money, quite 0:02:04.361 --> 0:02:07.921 honestly off the back of some good planning and hard work. 0:02:08.041 --> 0:02:11.321 So I think that's you know, one thing to you know, 0:02:11.361 --> 0:02:15.041 stay upfront. I imagine you know, you mentioned TikTok that 0:02:15.161 --> 0:02:17.161 a lot of younger people might think, you know, I'm 0:02:17.161 --> 0:02:19.561 going to become an influencer and make a million bucks 0:02:19.681 --> 0:02:22.401 next year. And whilst I was we were saying maybe 0:02:22.481 --> 0:02:24.841 point zero zero zero zero one percent of those people 0:02:25.081 --> 0:02:28.481 have the vast majority of people don't, So you know, 0:02:28.841 --> 0:02:31.721 and just like relying on a lottery wind is not 0:02:31.841 --> 0:02:35.361 a good plan for enriching yourself. It's you know, bring 0:02:35.441 --> 0:02:38.041 it back to basis. Look at your own skills and 0:02:38.201 --> 0:02:42.281 talents and what are you passionate about, and plot a 0:02:43.561 --> 0:02:45.121 plot a plan to go forward. 0:02:45.641 --> 0:02:47.281 Yeah, well, I'm just going to refer back to in 0:02:47.321 --> 0:02:50.161 the first hour, we were talking about the Taxpayer Union's cure, 0:02:50.201 --> 0:02:52.641 your poll and the biggest concern for a lot of people. 0:02:53.001 --> 0:02:54.601 In fact, they were given a range of things to 0:02:54.681 --> 0:02:57.321 talk about and you can see I'm flicking through each 0:02:57.321 --> 0:03:00.241 oil there. It's a huge part of pay We've killed 0:03:00.321 --> 0:03:03.161 three trees white printing this. The biggest concern is the 0:03:03.241 --> 0:03:05.641 cost of living. So we don't live in a society 0:03:05.961 --> 0:03:08.361 where a lot of people have endless amounts of money going, oh, 0:03:08.441 --> 0:03:10.801 how should I invest that? But even when you don't 0:03:10.881 --> 0:03:13.601 have much, are you better to do something with a 0:03:13.681 --> 0:03:16.401 little you have? And where should you shove that? What's 0:03:16.441 --> 0:03:17.121 the best thing to do? 0:03:17.481 --> 0:03:17.641 Well? 0:03:17.761 --> 0:03:20.041 First thing I would say is that everybody's circumstances are 0:03:20.081 --> 0:03:23.921 really unique, right, So what you know is discretionary excessive 0:03:24.041 --> 0:03:27.081 for some people might be like not really discretionary at 0:03:27.081 --> 0:03:30.121 all for another person, for example, a student or you know, 0:03:30.361 --> 0:03:32.601 or a fresh grad who's now having to pay off 0:03:32.681 --> 0:03:35.721 student debt, or you know, somebody has just paid off 0:03:35.761 --> 0:03:38.001 the mortgage and then they've got you know, some serious 0:03:38.001 --> 0:03:40.201 if they're still working discretionary and then what do they 0:03:40.281 --> 0:03:42.041 do for it? So it's sort of a stages and 0:03:42.121 --> 0:03:47.161 ages scenario and for that I can't say enough good 0:03:47.241 --> 0:03:50.161 things about sorted dot org dot nz because it does 0:03:50.641 --> 0:03:53.121 go through the stages and ages of where people are at, 0:03:53.841 --> 0:03:56.601 and you know, if you're completely overwhelmed, it does give 0:03:56.641 --> 0:03:59.321 you great step by step guidance about what kind of 0:03:59.401 --> 0:04:02.761 things you should tackle first. On you lest ie, say, 0:04:03.041 --> 0:04:05.081 you know you're a fresh graduate and you've got to 0:04:05.161 --> 0:04:07.761 pay back forty thousand dollars of debt. You know, whilst 0:04:07.801 --> 0:04:10.481 it may be low interested, it still needs to be repaid. 0:04:10.641 --> 0:04:13.121 So you know, these are some of the things you're 0:04:13.121 --> 0:04:16.201 going to have to look up in tandem with also 0:04:16.281 --> 0:04:19.281 trying to plan for your retirement and maybe setting aside 0:04:19.361 --> 0:04:21.761 some money for a house one day, all those kind 0:04:21.801 --> 0:04:24.121 of things. Right, So it really just depend on your 0:04:24.161 --> 0:04:27.641 own unique situation and where you would like to go 0:04:28.001 --> 0:04:31.081 as well, like what are your goals, how are you 0:04:31.121 --> 0:04:34.521 going to get there? And reverse engineer. So again, it's 0:04:34.561 --> 0:04:36.561 hard for me to say there's a magic bullet unless 0:04:36.681 --> 0:04:39.001 I know, you know, kind of where you're at in 0:04:39.081 --> 0:04:40.321 life at this'. 0:04:40.681 --> 0:04:42.561 That's a very good point and that's a good reason 0:04:42.601 --> 0:04:45.081 to call eight hundred and eighty ten eighty if you've 0:04:45.081 --> 0:04:48.321 got a question. Amanda Morele, a personal finance coach here 0:04:48.481 --> 0:04:52.841 right through for the hour. So you did mention sorted 0:04:52.881 --> 0:04:53.681 dot org, right. 0:04:53.801 --> 0:04:57.641 Yeah, yeah, it's wonderful. One thing I've been trying to 0:04:57.721 --> 0:05:00.721 do because I've got kids that kids, I guess they're 0:05:00.721 --> 0:05:03.841 young adults in their twenties, is to get them along, 0:05:04.121 --> 0:05:06.081 you know, on their on way. And so I've been 0:05:06.121 --> 0:05:08.601 doing some mentoring with you know, the one who at 0:05:08.681 --> 0:05:11.161 least was listening and now because he's wanting to go 0:05:11.281 --> 0:05:14.121 flooding and China, he's got one more year of UNI 0:05:14.281 --> 0:05:16.361 and allocating what the student will will buy you and 0:05:16.441 --> 0:05:18.641 how you you know, and there were some really again 0:05:18.961 --> 0:05:21.841 some very instructive tools. He's more of a visual learner 0:05:21.881 --> 0:05:24.081 because he's an artist, and you know, there's this is 0:05:24.161 --> 0:05:28.361 a great income and expense UH spreadsheet you can fill 0:05:28.401 --> 0:05:31.001 out and it's not like a boring Excel sheet. It's 0:05:31.121 --> 0:05:33.401 you can add images and you know it's very very 0:05:33.441 --> 0:05:37.121 accessible and friendly and you know, you just enter the numbers. 0:05:37.161 --> 0:05:40.161 It couldn't be any easier in the different areas the categories, 0:05:40.201 --> 0:05:42.081 and then you ask for the insights and I'll tell 0:05:42.081 --> 0:05:45.121 you what your shortfault or you know your overflow will be. 0:05:45.881 --> 0:05:47.961 So again, that's going to be a good indication for 0:05:48.241 --> 0:05:51.561 you know, are you in a position to invest or? Oops? 0:05:51.681 --> 0:05:53.801 Are you needing to make more money this year? Because 0:05:53.801 --> 0:05:55.921 you're not going to make ends meet very much. 0:05:56.001 --> 0:05:59.201 So the reason I went back to sort it as 0:05:59.241 --> 0:06:01.481 a topic is because I think a lot of us 0:06:01.601 --> 0:06:03.961 know it's there, think oh yeah, why don't really need that? 0:06:04.681 --> 0:06:06.921 How many people actually that, you know, apart from young 0:06:07.001 --> 0:06:09.721 people maybe, how many people who think they know everything 0:06:09.721 --> 0:06:12.161 about money actually go and do the simple stuff on salt? 0:06:12.441 --> 0:06:14.841 Not many, you know, including some people who are very 0:06:14.881 --> 0:06:17.321 close to me who are real financial experts too. And 0:06:17.401 --> 0:06:19.881 I'm like, hop on there, you know it is. It's 0:06:19.921 --> 0:06:22.281 a free resource. You can set up a personalized plan 0:06:22.561 --> 0:06:24.321 if you really want to kind of dive deep into 0:06:24.441 --> 0:06:27.841 the kipsaver space oneday and see what you're projected. You know, 0:06:27.961 --> 0:06:30.241 balance will be at a certain age or stage or 0:06:30.241 --> 0:06:31.721 if you're in the right type of fund, it's got 0:06:31.801 --> 0:06:35.961 resources for that, resources for retirement planning, resources to help 0:06:36.001 --> 0:06:37.921 you set up a budget. So it covers all the 0:06:37.961 --> 0:06:41.521 basics without it being really intimidating. I mean again, some 0:06:41.641 --> 0:06:45.201 people will have more complex financial situations and maybe they 0:06:45.281 --> 0:06:48.081 did get a massive you know, inheritance or a huge 0:06:48.121 --> 0:06:50.361 payout or a divorce thing, and they will want to 0:06:50.481 --> 0:06:54.761 have some more personalized professional advice, in which case may 0:06:54.841 --> 0:06:57.761 be thinking about going to see a financial advisor is 0:06:57.801 --> 0:06:59.641 a good thing, but there'll be a lot of people 0:06:59.761 --> 0:07:03.401 out there, many listeners who can be well served by 0:07:03.561 --> 0:07:06.881 just hopping on and doing these self guided tourism. There's 0:07:06.921 --> 0:07:09.121 even a weight hundred number there for people who are 0:07:09.161 --> 0:07:13.921 startkoho need some budgeting advice, and there's resources out there 0:07:14.121 --> 0:07:16.321 that will you know, pay for that as well. 0:07:16.361 --> 0:07:18.601 It's free, all good stuff, so sorted dot or for 0:07:18.641 --> 0:07:21.641 those that are Yeah, just going back to that, most 0:07:21.641 --> 0:07:23.161 of us don't have a lot of money. We live 0:07:23.401 --> 0:07:25.921 hand to mouth, which is why the cost of living 0:07:26.001 --> 0:07:29.761 is the number one voting issue according to that Courier survey. 0:07:29.761 --> 0:07:32.481 I just told you about if you do inherit huge money, 0:07:32.601 --> 0:07:35.801 like if you've got one hundred grand tomorrow, and is 0:07:35.881 --> 0:07:38.161 there any like I had that trepidation. I don't know 0:07:38.241 --> 0:07:40.241 who you are. I'm not pointing at you. You're a 0:07:40.361 --> 0:07:43.761 financial registered financial advisor. I'm going to put all my 0:07:43.841 --> 0:07:46.081 trust in you. But we've all been bitten in the 0:07:46.161 --> 0:07:49.681 past with stories of financial demise, with stuff disappearing or 0:07:49.921 --> 0:07:52.521 things going wrong. What sort of confidence can you have 0:07:52.601 --> 0:07:53.681 that your money's always going. 0:07:53.841 --> 0:07:56.441 And that's a good question because increasingly you're hearing very 0:07:56.481 --> 0:08:01.161 tragic tales about scoums and people you know, getting advertised 0:08:01.721 --> 0:08:04.881 a product that has very high end's rates and it's 0:08:05.241 --> 0:08:10.361 you know, either completely delusional or a scam. So alongside scorta, 0:08:10.441 --> 0:08:14.361 dot org, dot inz, another good website to a bookmark 0:08:14.481 --> 0:08:17.041 would be the Financial Markets Authority, and it does have 0:08:17.201 --> 0:08:21.401 some great resources there to guide you through how to 0:08:21.561 --> 0:08:25.001 choose a financial advisor, what to look for in even 0:08:25.281 --> 0:08:28.521 like some questions to ask whilst you're interviewing them. In 0:08:28.641 --> 0:08:31.721 many cases you can get you know, a half hour 0:08:31.801 --> 0:08:34.961 or an hour of their time for free while you're 0:08:35.041 --> 0:08:37.921 kind of auditioning that individual, and they should, you know, 0:08:38.041 --> 0:08:41.601 you should expect them to explain how they get paid. 0:08:41.641 --> 0:08:44.361 And I guess back to your point about getting the windfall. 0:08:45.121 --> 0:08:47.561 A lot of if you rock up to, you know, 0:08:47.801 --> 0:08:52.241 a financial advisor who's associated with a particular funds management business, 0:08:53.121 --> 0:08:55.841 you want to understand the payment model because in many 0:08:55.921 --> 0:08:58.161 cases they may be getting what is in the industry 0:08:58.201 --> 0:09:02.161 called a trail. So you invest your money via this 0:09:02.281 --> 0:09:06.201 financial advisor financial advisor, how they'll get paid is through 0:09:06.441 --> 0:09:09.001 a trail, and that's a tiny percentage or not so 0:09:09.161 --> 0:09:12.881 tiny percentage on the money that you've invested, and so 0:09:13.041 --> 0:09:15.801 that's their remuneration system from them. So these are the 0:09:15.881 --> 0:09:18.281 kind of things you really want to understand very clearly, 0:09:18.441 --> 0:09:21.361 and under the new regulations, we used to have almost 0:09:21.441 --> 0:09:24.641 none about fifteen years ago, but they're very very stringent now, 0:09:25.201 --> 0:09:27.361 and the financial advisors will have to tell you how 0:09:27.481 --> 0:09:29.761 they are paid. And what I would say to a 0:09:29.801 --> 0:09:32.521 lot of people because there's a lot of you know, 0:09:32.961 --> 0:09:36.321 fancy language and jargon, and people get confused and then 0:09:36.321 --> 0:09:39.121 they feel embarrassed asked the questions is there's no such thing. 0:09:39.281 --> 0:09:41.041 We used to say this in journalism all the time 0:09:41.121 --> 0:09:44.001 as a stupid question. So you'd be one hundred percent 0:09:44.081 --> 0:09:47.921 sure in your own mind about what you're getting from them. 0:09:48.121 --> 0:09:50.841 In return how they get paid. There are fee based 0:09:50.881 --> 0:09:53.561 advisors at charge you on an hourly basis, and for 0:09:53.681 --> 0:09:56.961 that you would expect there's more sort of neutral advice. 0:09:57.041 --> 0:09:59.801 They're not going to put you into a product via, 0:10:00.201 --> 0:10:02.761 for example, the bank that they are representing that kind 0:10:02.761 --> 0:10:03.041 of thing. 0:10:03.201 --> 0:10:05.401 Yeah, okay, I like what you're saying because gives me 0:10:05.521 --> 0:10:08.841 more confidence when I do win lotto, which will happen 0:10:08.841 --> 0:10:11.561 at some point. It's got to happen, right, Oh, I 0:10:11.561 --> 0:10:13.281 don't know. I am one of those people that thinks 0:10:13.321 --> 0:10:14.801 it's exciting to get a lot of ticket and I 0:10:14.921 --> 0:10:17.561 start planning everything ahead. What I have done since I've 0:10:17.641 --> 0:10:19.761 met you, what I have done with my Kiwi Saver 0:10:20.441 --> 0:10:22.361 is I've stopped kidding myself that I'm going to live 0:10:22.361 --> 0:10:24.921 to one hundred and fifty and that because I started 0:10:24.961 --> 0:10:27.761 it later in life. I've gone as hard as I can. 0:10:28.401 --> 0:10:30.961 And I think you said to me. I'm pretty sure 0:10:30.961 --> 0:10:32.881 it was you that said, go as hard as you can. 0:10:33.041 --> 0:10:35.121 You're not going to notice that percentage of your income 0:10:35.561 --> 0:10:37.561 being locked out. But once you've done it, you're doing 0:10:37.721 --> 0:10:40.481 everything you can to do the best you can for yourself. 0:10:40.561 --> 0:10:43.281 Later on, Yeah, I guess I'm not sure if it 0:10:43.441 --> 0:10:45.681 was mere. But I think you know, when you play 0:10:45.721 --> 0:10:49.641 with some of these tools and there are someone sorted 0:10:49.681 --> 0:10:53.001 where you can look at the difference between you know, 0:10:53.081 --> 0:10:55.721 in k severy you can the minimums three percent and 0:10:55.801 --> 0:10:57.401 you can pay right up to ten, or you can 0:10:57.441 --> 0:11:00.241 make lumps some depositents if you get that fortune. But 0:11:01.361 --> 0:11:04.441 it's good for you to see the difference over a 0:11:04.521 --> 0:11:07.961 time those percentage points can make. But you know, with 0:11:08.121 --> 0:11:10.201 you having said that, with cost of living is so 0:11:10.361 --> 0:11:13.041 high rate, now you know what if some people are 0:11:13.881 --> 0:11:16.201 have got themselves and they forgot about it that they're 0:11:16.241 --> 0:11:19.281 paying ten percent of their salary into kiwisive and they 0:11:19.361 --> 0:11:21.521 can afford to make ends meet and putting more on 0:11:21.601 --> 0:11:23.401 the credit card and not being able to play it 0:11:23.441 --> 0:11:25.281 off in full, well, then you may want to dial 0:11:25.401 --> 0:11:29.561 that back. If you move your contributions to a higher rate, 0:11:29.801 --> 0:11:31.401 you can always put them to a smaller rate. You 0:11:31.481 --> 0:11:34.401 have to notify your you know, your payroll system. I 0:11:34.481 --> 0:11:40.641 think IRD also made it possible to do contribution changes 0:11:40.841 --> 0:11:43.281 through the portal there, And how that works is they'll 0:11:43.361 --> 0:11:47.961 notify your provider and the provider notifies payroll or whatever, 0:11:48.001 --> 0:11:49.361 and it kind of happens that way. But the most 0:11:49.401 --> 0:11:51.241 direct way would be to talk to your employer and 0:11:51.321 --> 0:11:54.801 get those readjusted. But but do those calculations so you 0:11:54.961 --> 0:11:59.201 know that what you're contributing is you know, comfortable for you, 0:11:59.401 --> 0:12:01.921 because you know there's no point in like paying higher 0:12:01.961 --> 0:12:04.561 than you need to if you're maxing out the benefits 0:12:04.601 --> 0:12:06.921 of key we sand wwhich cases getting the five hundred 0:12:06.921 --> 0:12:09.281 and twenty one dollars a year from the government for free, 0:12:09.961 --> 0:12:12.801 are you going to have any other additional benefit by 0:12:13.001 --> 0:12:15.921 you know, over extending yourself if you've got credit card 0:12:15.961 --> 0:12:17.761 debt or something like that that you can't get a 0:12:17.801 --> 0:12:18.201 handle on. 0:12:18.481 --> 0:12:21.041 So I look at Tyra, my producer, her age, and 0:12:21.121 --> 0:12:22.761 I'm not going to tell you her age, because well 0:12:22.801 --> 0:12:24.961 I don't know it, but I know that I'm a 0:12:25.001 --> 0:12:27.841 lot older than Tyra, right, So I wish And I've 0:12:27.881 --> 0:12:30.561 got two girls. My oldest daughter's nearty thirty, my youngest 0:12:30.641 --> 0:12:33.881 daughter's twenty six. So I just wish we'd had KEI 0:12:33.961 --> 0:12:36.201 we saver back then. I wish, you know, I'd be 0:12:36.241 --> 0:12:39.321 a multi millionaire by now if I'd had that financial 0:12:39.401 --> 0:12:42.241 acumen back then to think ahead, because no one really 0:12:42.281 --> 0:12:44.361 does when they're young until someone like you being a 0:12:44.441 --> 0:12:47.721 mum of children who are clearly brainy and intelligent when 0:12:47.761 --> 0:12:49.841 it comes to money, but most of us don't really 0:12:49.881 --> 0:12:52.881 steer our children in that direction. You talk about clearing debt. 0:12:53.161 --> 0:12:55.121 In the old days, it was clear your debt and 0:12:55.201 --> 0:12:57.681 that's the way forward. That's my way of thinking as well. 0:12:58.761 --> 0:13:01.881 It's not all that difficult. But you know there's again 0:13:01.961 --> 0:13:05.161 this is I'm working through these modules with my my 0:13:05.281 --> 0:13:08.681 twenty one year old. There's a big difference between theory 0:13:08.801 --> 0:13:11.801 and practice, and one of my kids has learned the 0:13:11.841 --> 0:13:14.441 hard way and I think has really kind of gotten 0:13:14.481 --> 0:13:16.321 on top of it. The other one is money and 0:13:16.441 --> 0:13:19.041 money out many and I keep emphasizing that this is 0:13:19.121 --> 0:13:23.041 not a sustainable strategy, particularly if you run out and 0:13:23.081 --> 0:13:24.761 then you get a credit add It is so my 0:13:24.921 --> 0:13:27.041 best advice to them, and the only thing that they've 0:13:27.081 --> 0:13:28.681 seemed to have listened to is do not get a 0:13:28.801 --> 0:13:33.201 credit card, because that's going to unless you are responsible 0:13:33.561 --> 0:13:36.041 payer and full of your credit card, this is really 0:13:36.121 --> 0:13:38.401 going to be a new surround your neck. So fortunately 0:13:38.521 --> 0:13:40.761 they both have credit debit cards, which only allows them 0:13:40.761 --> 0:13:43.081 to swim what's in their account. But there's still some 0:13:43.281 --> 0:13:46.641 learnings there and that becomes that speaks to the behavior. 0:13:47.281 --> 0:13:49.721 So there's a big behavioral reset that a lot of 0:13:49.761 --> 0:13:53.201 people need to, you know, kind of force on themselves 0:13:53.441 --> 0:13:57.921 or reflect on to get the outcomes that they would 0:13:58.041 --> 0:14:01.321 like to see in their financial situations, which will kind 0:14:01.361 --> 0:14:03.681 of bear fruit in other areas of your life too, because, 0:14:03.961 --> 0:14:06.161 as you know, when you feel like you're under financial 0:14:06.241 --> 0:14:08.161 threat or there's a lot of stress and pressure there, 0:14:08.801 --> 0:14:11.881 it can affect everything, your personal relationships, your health. 0:14:11.761 --> 0:14:15.321 Absolutely, the whole shebang. Oh heck yes, stress level, constipation. 0:14:15.441 --> 0:14:17.721 I've had it all through odd So I like that. 0:14:17.841 --> 0:14:20.081 I like the two things you've mentioned. They're sorted dot 0:14:20.241 --> 0:14:23.361 org and also the Financial Markets Authority, two good places 0:14:23.441 --> 0:14:26.681 to start, as well as instigating someone like yourself. Amanda 0:14:26.761 --> 0:14:29.721 Morel with us, a personal finance coach eight hundred eighty 0:14:29.801 --> 0:14:32.601 ten eighty nine two ninety two to text Hi their 0:14:32.601 --> 0:14:35.081 Amanda says the text, Up, we're putting extra into the 0:14:35.201 --> 0:14:38.161 super and Keywi Saver, but I worry we should be 0:14:38.201 --> 0:14:42.201 putting that extra off the mortgage first, which is more important? 0:14:42.281 --> 0:14:45.241 Do you think cheers is duly Yeah, that's. 0:14:45.601 --> 0:14:47.881 A good question one that a lot of people ask 0:14:47.961 --> 0:14:51.521 themselves as well. What I would suggest is if you 0:14:51.801 --> 0:14:55.761 go another one to bookmarkers, Interest, dot co, dot NZA. 0:14:56.601 --> 0:14:59.321 They've also got some rear payment calculators, and I think 0:14:59.401 --> 0:15:01.481 sort of has got a similar one. But you can 0:15:01.561 --> 0:15:04.401 do some scenario planning, like I don't know how much 0:15:04.521 --> 0:15:07.481 longer they're have on their mortgage, but if you were 0:15:07.601 --> 0:15:11.441 to increase your payments by X, how much is that 0:15:11.601 --> 0:15:15.921 going to reduce the interest over the lifetime of that mortgage? 0:15:15.961 --> 0:15:18.241 And you know when will venied position to be debt free, 0:15:18.401 --> 0:15:23.121 And so it's kind of it's a personal decision based 0:15:23.161 --> 0:15:26.361 on your overall financial situation, but it's really helpful to 0:15:26.441 --> 0:15:29.801 do those. You don't need to have a calculator in 0:15:29.921 --> 0:15:32.401 hand and figure out the formulas. You just add to 0:15:32.521 --> 0:15:36.601 the numbers, do a little experimentation to see just how 0:15:36.761 --> 0:15:39.881 much you are paying interest on the mortgage and how 0:15:39.961 --> 0:15:42.241 much better off you be to fast track that mortgage. 0:15:42.281 --> 0:15:45.401 A bear in mind that that depending on who your 0:15:45.881 --> 0:15:50.161 mortgage is with, you can't sometimes penalized for repaying it 0:15:50.281 --> 0:15:52.561 earlier and then you need to reset it. But so 0:15:52.801 --> 0:15:55.681 some mortgages, depending on which bank you're with, are more 0:15:55.721 --> 0:15:58.601 flexible than others. So you also need to understand the 0:15:58.721 --> 0:16:01.841 decencies of your mortgage and when the reset period is. 0:16:02.681 --> 0:16:05.721 But mortgages for the vast majority of it, or one 0:16:05.761 --> 0:16:07.521 of the biggest items that we're going to be paying 0:16:07.561 --> 0:16:09.961 off over time, you know that a million dollar pause 0:16:10.041 --> 0:16:13.441 once you tick your factor and the principal interest over time, 0:16:13.561 --> 0:16:15.921 you know it maybe two million dollars that you're paying off. 0:16:16.081 --> 0:16:18.441 Absolutely, So, just to be clear, because I don't know 0:16:18.521 --> 0:16:21.201 that I maybe I wasn't listening properly then, but are 0:16:21.281 --> 0:16:23.681 you better to focus on clearing the mortgage before you 0:16:23.761 --> 0:16:26.841 start flitting around with chas ease and investing in rocket labe? 0:16:27.001 --> 0:16:32.321 It really depends, because you know my personal preferences, I 0:16:32.441 --> 0:16:36.681 don't like owing money, so that's that's how I've chosen 0:16:36.841 --> 0:16:40.441 to do things with my own finances. Is repay all 0:16:40.481 --> 0:16:43.881 the debt once you're mortgage free, then reinvest. Having said that, 0:16:44.241 --> 0:16:46.401 that may seem like a very long way off for 0:16:46.441 --> 0:16:48.601 a lot of people, So there might be scope within 0:16:48.721 --> 0:16:52.401 your budget to do both, depending on right so you 0:16:52.521 --> 0:16:54.881 might be able to you know, fast track the mortgage 0:16:55.001 --> 0:16:57.561 by repaying a little bit more. You know, you can 0:16:57.641 --> 0:17:00.921 repay it on a weekly fortnightly, so that will make 0:17:00.961 --> 0:17:03.161 a difference too. In terms of you know, from monthly 0:17:03.241 --> 0:17:07.001 to fortnightly even you can check those differences on sort it. 0:17:08.081 --> 0:17:10.281 But yeah, you might have scope within your budget to 0:17:10.441 --> 0:17:13.521 also invest on the side. I mean, if you're planning 0:17:13.641 --> 0:17:15.841 to go that route in your DIY investing, I would 0:17:15.881 --> 0:17:17.241 just be dow. I'n sure that you know what you're 0:17:17.281 --> 0:17:19.721 doing so that you're not blowing at right. So that's 0:17:19.801 --> 0:17:25.001 why things like managed funds, there's parallel funds just like 0:17:25.161 --> 0:17:27.801 Kiwi siver, but they're not locked in, are not a 0:17:27.881 --> 0:17:30.761 bad thing for people to look at instead of trying 0:17:30.801 --> 0:17:33.281 to choose shares that they think may or they might 0:17:33.401 --> 0:17:36.041 do well if they're not have any expertise in these areas. 0:17:36.241 --> 0:17:37.041 I just want to jump in. 0:17:37.161 --> 0:17:38.641 I want to jump in there because you said, as 0:17:38.681 --> 0:17:40.441 long as you know what you're doing, which of course 0:17:40.561 --> 0:17:42.641 you know very well. Most of us have no idea. 0:17:42.761 --> 0:17:45.761 Brian down the road, whose sister's Margaret's brother in law's 0:17:45.761 --> 0:17:48.521 friend Albert said it was a good idea. Therefore it's 0:17:48.521 --> 0:17:50.881 a good idea. So you are better off talking to 0:17:51.001 --> 0:17:54.281 someone like yourself for financial advice, because there must be 0:17:54.401 --> 0:17:57.961 some lemons that are clearly geese. You know, and you 0:17:58.041 --> 0:18:00.481 invest in some barking duck and all of a sudden, 0:18:00.481 --> 0:18:02.361 you're going But so and so said it was brilliant, 0:18:02.361 --> 0:18:05.601 It was advertised beautifully. The voiceover was tremend Yeah. 0:18:05.761 --> 0:18:07.961 Well, yes, you have to, you know, buy or beware 0:18:08.041 --> 0:18:11.121 kind of thing. But there is lots of places where 0:18:11.201 --> 0:18:14.641 you can, you know, verify what it is you're investing 0:18:14.641 --> 0:18:16.521 in the companies and do the research. But it is 0:18:16.601 --> 0:18:18.881 quite time consuming. Like if you get a passion for that, 0:18:19.041 --> 0:18:22.601 that's great, but if that's not your expertise. You're a 0:18:22.681 --> 0:18:25.961 busy you know, householder and raising kids and trying to 0:18:26.001 --> 0:18:29.361 manage everything. Ness, don't you know why add extra stress 0:18:29.441 --> 0:18:33.441 onto your life by making yourself become a stock picker 0:18:33.641 --> 0:18:36.401 in your spare time. You know, that's not particularly a 0:18:36.441 --> 0:18:39.561 good strategy to create more stress by something that you're 0:18:39.721 --> 0:18:43.121 wandering in the dark about. But you know, if you're 0:18:43.281 --> 0:18:45.401 somebody with lots of time on their hands, you know 0:18:45.561 --> 0:18:48.761 you're single, you love this stuff, you know you're comfortable 0:18:48.881 --> 0:18:51.121 with everything and how it works and cap safer, then sure, 0:18:51.201 --> 0:18:53.401 maybe you want to weigh in slowly and buy a 0:18:53.521 --> 0:18:56.201 chare disease and you know, give it a bit of 0:18:56.241 --> 0:18:59.961 a flirt, but you do need to understand the risks 0:19:00.041 --> 0:19:05.881 that you're taking your time horizons for investing, and you 0:19:05.961 --> 0:19:08.201 know your your your durations as well. 0:19:08.481 --> 0:19:11.081 Yeah, you go really good points and I've written all 0:19:11.081 --> 0:19:13.681 those points down. Of course, sorted dot org is one, 0:19:13.921 --> 0:19:17.121 Financial Markets Authority was the other, and Interest Stock Code 0:19:17.121 --> 0:19:19.761 Audience good places to go and get some some key 0:19:19.841 --> 0:19:22.121 points and then go and see a financial advisor as well, 0:19:22.361 --> 0:19:24.921 because you know, whether it's huge money or a little 0:19:24.921 --> 0:19:27.441 bit of money, no money can be afford to be lost, 0:19:27.521 --> 0:19:29.161 can it. We all value the money. 0:19:28.961 --> 0:19:29.321 That we have. 0:19:29.841 --> 0:19:32.441 I would say among the people that I know who 0:19:32.481 --> 0:19:36.081 are the wealthiest, they cherish their money and they watch 0:19:36.121 --> 0:19:39.521 it very closely, right, and so it's no surprise that 0:19:39.561 --> 0:19:41.321