1 00:00:07,133 --> 00:00:10,453 Speaker 1: You're listening to the Saturday Morning with Jack Teams podcast 2 00:00:10,573 --> 00:00:11,733 Speaker 1: from News Talks, that'd be. 3 00:00:12,733 --> 00:00:15,493 Speaker 2: Time to catch up with our personal finance expert. E 4 00:00:15,613 --> 00:00:17,813 Speaker 2: McKnight is here from Opie's Partners this morning. 5 00:00:17,813 --> 00:00:20,373 Speaker 3: Good morning, Great to be here, Jack, Great. 6 00:00:20,133 --> 00:00:22,853 Speaker 2: To be speaking with you. Although I'm shaking in my 7 00:00:22,853 --> 00:00:26,933 Speaker 2: boots this morning. You have brutally honest advice, brutally honest 8 00:00:26,973 --> 00:00:29,293 Speaker 2: money advice for kiwis who want to get ahead this morning. 9 00:00:29,893 --> 00:00:31,613 Speaker 3: Well, here's the thing. I often try and be very 10 00:00:31,653 --> 00:00:34,293 Speaker 3: encouraging when I'm on this show, but someone reached out 11 00:00:34,333 --> 00:00:36,693 Speaker 3: to me and said, oh, caep, be a bit more brutal. 12 00:00:36,773 --> 00:00:40,173 Speaker 3: Tell us what you're scared that we might get offended at. 13 00:00:40,453 --> 00:00:42,293 Speaker 3: And so I've come up with three things that I 14 00:00:42,293 --> 00:00:44,773 Speaker 3: think are brutally honest that people really need to know. 15 00:00:45,133 --> 00:00:46,693 Speaker 3: And I think the first thing when it comes to 16 00:00:46,733 --> 00:00:50,853 Speaker 3: money is that you are not destined to be wealthy, 17 00:00:51,053 --> 00:00:54,173 Speaker 3: which sounds quite quite sad and shocking, But the thing 18 00:00:54,373 --> 00:00:56,573 Speaker 3: is a lot of us have this patron in our 19 00:00:56,693 --> 00:00:59,093 Speaker 3: heads about what our lives are going to be like, 20 00:00:59,173 --> 00:01:01,893 Speaker 3: and you almost feel sometimes like it's destined to happen. 21 00:01:02,253 --> 00:01:04,853 Speaker 3: The truth of the matter is wanting to be wealthy 22 00:01:04,933 --> 00:01:07,133 Speaker 3: or to have a batch or a nice is not 23 00:01:07,173 --> 00:01:09,173 Speaker 3: going to make it happen. And I read a really 24 00:01:09,173 --> 00:01:12,613 Speaker 3: interesting study recently out of the University of New York, 25 00:01:13,333 --> 00:01:16,893 Speaker 3: and it found that even if you really really want something, 26 00:01:17,373 --> 00:01:21,213 Speaker 3: that only explains about twenty percent of whether it's going 27 00:01:21,253 --> 00:01:24,453 Speaker 3: to happen or not. Because even if you really want something, 28 00:01:24,493 --> 00:01:26,893 Speaker 3: we get distracted, or we give up when we're bored, 29 00:01:27,013 --> 00:01:29,533 Speaker 3: or it gets a bit hard. And so the first 30 00:01:29,533 --> 00:01:31,293 Speaker 3: thing is, you know, even if you want a lot 31 00:01:31,333 --> 00:01:33,573 Speaker 3: of money, wanting it is not enough. We've got to 32 00:01:33,573 --> 00:01:36,053 Speaker 3: do some other things to make it happen. As obvious 33 00:01:36,093 --> 00:01:37,813 Speaker 3: as that actually sound. 34 00:01:37,613 --> 00:01:40,333 Speaker 2: Yeah, I mean that Actually that is a very good point, right, 35 00:01:40,333 --> 00:01:41,853 Speaker 2: because a lot of us kind of you know, have 36 00:01:41,933 --> 00:01:45,533 Speaker 2: these kind of loose dreams about the kind of lives 37 00:01:45,613 --> 00:01:48,973 Speaker 2: or lifestyles that we want to have. But actually breaking 38 00:01:49,013 --> 00:01:50,733 Speaker 2: down the kind of steps that you need to go 39 00:01:50,773 --> 00:01:53,973 Speaker 2: through in order to get there is, you know, is 40 00:01:54,013 --> 00:01:56,333 Speaker 2: something that many of us wouldn't necessarily do. So that 41 00:01:56,373 --> 00:01:59,213 Speaker 2: does make a lot of sense. What's another bit of 42 00:01:59,293 --> 00:02:00,773 Speaker 2: brutal advice you've got for. 43 00:02:00,773 --> 00:02:03,893 Speaker 3: Us, Well, if you really care about earning more through 44 00:02:03,933 --> 00:02:08,053 Speaker 3: your job, it doesn't actually matter how valuable your skills are. 45 00:02:08,293 --> 00:02:11,493 Speaker 3: That matters a bit, But what really matters is how 46 00:02:11,653 --> 00:02:13,973 Speaker 3: rare the skills are. And I think a lot of 47 00:02:13,973 --> 00:02:16,253 Speaker 3: people do not focus enough on this. So the way 48 00:02:16,253 --> 00:02:18,693 Speaker 3: I always think about it is, how is it that 49 00:02:18,773 --> 00:02:21,813 Speaker 3: you can have two people who both go to university, 50 00:02:21,853 --> 00:02:25,173 Speaker 3: they study for four years, but a decade after they graduate, 51 00:02:25,293 --> 00:02:28,453 Speaker 3: one of the moons call it ninety thousand dollars and 52 00:02:28,493 --> 00:02:31,733 Speaker 3: another earns one hundred and ninety thousand dollars, like an 53 00:02:31,733 --> 00:02:34,493 Speaker 3: extra one hundred thousand dollars. Because that is the reality 54 00:02:34,493 --> 00:02:38,293 Speaker 3: of what happens. And if you think about, say a teacher. Now, 55 00:02:38,333 --> 00:02:42,693 Speaker 3: teachers have such an incredibly valuable job to do. They 56 00:02:42,733 --> 00:02:45,813 Speaker 3: are raising the next generation, and everybody would say that 57 00:02:45,893 --> 00:02:49,853 Speaker 3: is an incredibly valuable job for society. And yet after 58 00:02:50,413 --> 00:02:52,573 Speaker 3: a few good years in the job, some of them 59 00:02:52,653 --> 00:02:54,653 Speaker 3: end up on about ninety thousand dollars, And a lot 60 00:02:54,653 --> 00:02:57,133 Speaker 3: of us would say, oh, that's not much for that 61 00:02:57,293 --> 00:02:59,893 Speaker 3: hard job that they do, that valuable job that they do. 62 00:03:00,253 --> 00:03:02,493 Speaker 3: And yet if you look at some people, not everyone 63 00:03:02,533 --> 00:03:05,133 Speaker 3: in the bank, but some people who work for the 64 00:03:05,173 --> 00:03:07,333 Speaker 3: bank and sit in their spread cheats, they could earn 65 00:03:07,373 --> 00:03:09,533 Speaker 3: one hundred and ninety thousand dollars, and all of us 66 00:03:09,573 --> 00:03:11,813 Speaker 3: would say, would you really miss it if you didn't 67 00:03:11,813 --> 00:03:14,933 Speaker 3: have an extra spreadsheet person sitting in the bank, And 68 00:03:15,013 --> 00:03:17,133 Speaker 3: yet they earned so much more. And what I want 69 00:03:17,213 --> 00:03:20,293 Speaker 3: Keevish to focus on is not just how valuable the 70 00:03:20,293 --> 00:03:22,733 Speaker 3: skill is, but how rare is it. There are a 71 00:03:22,773 --> 00:03:25,013 Speaker 3: lot of kids who grow up wanting to be teachers. 72 00:03:25,013 --> 00:03:27,053 Speaker 3: There are not many kids who grow up saying I'd 73 00:03:27,053 --> 00:03:29,213 Speaker 3: love to sit at a bank with a spreadsheet. And 74 00:03:29,293 --> 00:03:32,333 Speaker 3: so don't just think about how much demand there is 75 00:03:32,333 --> 00:03:35,693 Speaker 3: for your skill, but how rare the skill is as well, 76 00:03:35,733 --> 00:03:38,933 Speaker 3: because if there aren't many people being actuaries or any 77 00:03:38,973 --> 00:03:42,213 Speaker 3: of those boring jobs, then it's much easier to get 78 00:03:42,253 --> 00:03:46,733 Speaker 3: businesses to bid your salary or what you get paid up. 79 00:03:46,973 --> 00:03:49,013 Speaker 2: Yeah, that's a very good point. And then, you know, 80 00:03:49,333 --> 00:03:51,133 Speaker 2: I think you make a really good point around teachers, like, 81 00:03:51,173 --> 00:03:54,413 Speaker 2: no one's disputing the value of the job, right, but 82 00:03:54,453 --> 00:03:57,733 Speaker 2: it is. It's the scarcity thing, and you know, it's 83 00:03:57,973 --> 00:03:59,133 Speaker 2: at the end of the day, it's a kind of 84 00:03:59,173 --> 00:04:01,773 Speaker 2: a you know, kind of the rules of supply and demand. 85 00:04:01,853 --> 00:04:04,453 Speaker 2: Said listen, and I suppose to be people who say, well, 86 00:04:04,493 --> 00:04:07,933 Speaker 2: actually you know I'm not, like, the reason I work 87 00:04:07,973 --> 00:04:10,453 Speaker 2: isn't solely to make money. But the truth is, to 88 00:04:10,453 --> 00:04:13,573 Speaker 2: go back to your first point, if you do aspire 89 00:04:13,653 --> 00:04:16,133 Speaker 2: to a certain life or lifestyle, then at some point 90 00:04:16,173 --> 00:04:18,573 Speaker 2: you do need to address the income side of things. 91 00:04:18,653 --> 00:04:21,133 Speaker 2: And then that brings you to your third bit of 92 00:04:21,173 --> 00:04:22,493 Speaker 2: brutal advice this morning. 93 00:04:22,413 --> 00:04:25,133 Speaker 3: Ed, which is that most people are not going to 94 00:04:25,133 --> 00:04:28,413 Speaker 3: make a significant amount of wealth through their work, and 95 00:04:28,453 --> 00:04:31,573 Speaker 3: so you've got to find ways to build wealth outside 96 00:04:31,653 --> 00:04:33,493 Speaker 3: of the job you do. Because I know for most 97 00:04:33,573 --> 00:04:36,173 Speaker 3: Kiwi's listening, you go to work, you get your pay, 98 00:04:36,253 --> 00:04:38,253 Speaker 3: you spend most of it, and often there's not that 99 00:04:38,373 --> 00:04:40,933 Speaker 3: much left over. And so a lot of us are 100 00:04:40,973 --> 00:04:43,453 Speaker 3: not going to get rich through our jobs unless we're 101 00:04:43,653 --> 00:04:46,773 Speaker 3: CEOs or we are those bankers with the spreadsheets. So 102 00:04:46,813 --> 00:04:49,133 Speaker 3: we've got to think, how are we going to build 103 00:04:49,173 --> 00:04:52,253 Speaker 3: wealth outside of work? Now, the obvious answer is investing, 104 00:04:52,293 --> 00:04:53,933 Speaker 3: and you can do that in lots of ways. I'm 105 00:04:53,933 --> 00:04:56,533 Speaker 3: a property guy, but you could invest in shares, or 106 00:04:56,573 --> 00:04:59,093 Speaker 3: build businesses or at a lot of other ways. But 107 00:04:59,653 --> 00:05:02,573 Speaker 3: if we are investing effectively, we've got to take money 108 00:05:02,573 --> 00:05:05,373 Speaker 3: that we would otherwise spend today and use it to 109 00:05:05,533 --> 00:05:08,653 Speaker 3: buy property or shoes or something else, and that can 110 00:05:08,693 --> 00:05:10,653 Speaker 3: be hard and boring. So you've just got to have 111 00:05:10,693 --> 00:05:12,573 Speaker 3: it in your mind. Why am I doing this because 112 00:05:12,573 --> 00:05:15,053 Speaker 3: I need to build wealth outside my work. Do you know? 113 00:05:15,093 --> 00:05:18,213 Speaker 2: Once upon a time I had a conversation with a billionaire, 114 00:05:18,573 --> 00:05:20,773 Speaker 2: as you do, like I, just a very casual conversation. 115 00:05:20,813 --> 00:05:23,253 Speaker 2: It was very very interesting, and one thing that this 116 00:05:23,333 --> 00:05:26,093 Speaker 2: person said to me was, you don't get rich working 117 00:05:26,133 --> 00:05:28,973 Speaker 2: for someone else. And so if that is something you 118 00:05:29,013 --> 00:05:32,813 Speaker 2: do aspire to, if you aspire to great riches or 119 00:05:32,813 --> 00:05:35,493 Speaker 2: to a certain kind of life and lifestyle, I think 120 00:05:35,533 --> 00:05:38,453 Speaker 2: at the end of the day that the way that 121 00:05:38,493 --> 00:05:40,693 Speaker 2: most people might get to that level of wealth is 122 00:05:40,733 --> 00:05:43,693 Speaker 2: not through being an employee. It's through being an employer. 123 00:05:45,133 --> 00:05:47,093 Speaker 3: I think that's definitely the case for a lot of 124 00:05:47,133 --> 00:05:49,013 Speaker 3: people personally. I've found that myself. 125 00:05:49,333 --> 00:05:52,173 Speaker 2: Thanks you, Timed, appreciate it. Ed McKnight from Opie's Partners 126 00:05:52,173 --> 00:05:52,893 Speaker 2: with Us This Morning. 127 00:05:53,413 --> 00:05:56,493 Speaker 1: For more from Saturday Morning with Jack Tame, listen live 128 00:05:56,613 --> 00:05:59,773 Speaker 1: to News talks'd B from nine am Saturday, or follow 129 00:05:59,813 --> 00:06:01,373 Speaker 1: the podcast on iHeartRadio.