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To help you learn from the mistakes of others, here’s a quick-fire list of the 25 worst ways people waste money: New cars. The average depreciation rate for new cars in New Zealand is 40 percent in year one, then 20 percent for the next three years. Enough said. Overpriced phones. When the newest model smartphone offers negligible benefits compared to the... Read more Read more

Interest rates on mortgages and other loans are estimated to rise by between .20 and .60 percent as a result of the Reserve Bank's decision to require banks to put an extra $20 billion of capital into their businesses. The Reserve Bank put the figure at .20 percent, while ANZ believed the impact could be up to triple that, with other estimates somewhere in between. This is because the... Read more Read more

Timing investment markets is everybody’s dream. Self-proclaimed “financial gurus” may lead you to believe they have market timing mastered, and that by following their steps you’ll be on a certain path to riches. In fact, if these self-proclaimed gurus knew how to consistently time the market the last thing they’d do is tell everyone else about it – they’d be far too occupied cruising the... Read more Read more

Many millennials are having a tough time launching their adult lives. The usual blame for this is placed on burdensome student loans, job insecurity, high housing or rent costs, and – of course –surplus cash regularly devoted to smashed avocado on toast and the latest iPhone! As a result, perhaps it’s no surprise that many parents of these grown-up children are offering financial support.... Read more Read more

The holiday period is meant to be a time for getting together, enjoying the company of family and friends, exchanging gifts, and having a good time. Unfortunately, this time of year can also be called ‘silly season’ for good reasons – including financial stresses. Putting these eight holiday financial tips into action can help you enjoy your holiday and keep your spending in check... Read more Read more

The word ‘liability’ has a strict accounting interpretation, though for the sake of this article let’s keep it simple and stick with the Oxford definition of a liability as “A person or thing that causes you a lot of problems.” The opposite of a liability is an asset, which Oxford defines as “A person or thing that is valuable or useful to somebody/something.” The... Read more Read more

The word ‘asset’ has a rigid accounting interpretation, though let’s keep things simple and stick with the Oxford dictionary definition which considers an asset to be “A person or thing that is valuable or useful to somebody/something.” In contrast, Oxford defines a liability as “A person or thing that causes you a lot of problems.” Most of us understand financial... Read more Read more

Supermarkets are useful one-stop shops for a variety of goods. However, in case you weren’t already aware, the multi-billion-dollar NZ supermarket industry is dominated by two players, so we don’t have much choice when it comes to our weekly shop. The big two are: Woolworths New Zealand (owner of Countdown and franchisor of the SuperValue and FreshChoice stores) and Foodstuffs... Read more Read more

American financial guru and self-made millionaire Suze Ormon’s nine financial steps are a great overview of personal finance, and while most of the steps would apply to most people, all steps don’t suit everyone. Susan, ‘Suze’ Ormon built a career as a US financial adviser who progressed into a range of areas including hosting her own personal finance TV show and authoring books on... Read more Read more

Even if you have a faultless record of repaying any debts, if you’ve ever applied for a credit card, home loan, phone contract or hire purchase agreement, you probably know the feeling that comes when you hear the words, “I’ll just have to run a credit check”. When a lender runs a credit check, they’re requesting information that relates to your history of repaying debt to help... Read more Read more

Traditionally, term deposits have been a popular strategy for many retirees and Kiwis who weren’t quite sure about how to choose or access other investments or needed to access the money in the near future. What has happened with term deposits? Before the Global Financial Crisis (GFC), New Zealand’s Official Cash Rate was sitting at 8.25%. The official cash rate tends to... Read more Read more

Recent research confirms what many of us may have been thinking – that things are looking better for first home buyers. This particular study is called the Massey Home Affordability Index, and to determine their conclusions, researchers ran a series of calculations which consider the cost of borrowing (mortgage interest rates) as well as incorporating house prices and wage levels. In... Read more Read more

A wise man once said: ‘the only constant in life is change’. Of course, a part of change is uncertainty. While you may not be able to prevent yourself from all forms of uncertainty, you can surely prepare well in advance for any kind of financial uncertainty that may occur in the future. 1. Establish an ‘uncertainty fund’ Similar to an emergency fund, an uncertainty fund is a... Read more Read more

The holiday season is approaching fast, and many of us have already started planning trips away. Keep your hard-earned money working for you by avoiding these seven holiday travel mistakes on your next trip: 1. Using public Wi-Fi, especially for financial transactions When you’re travelling it can be tempting to connect to every airport, café or hotel Wi-Fi signal... Read more Read more

Increasingly we’re being asked about responsible investing. Sometimes called ethical investing, the interest in this area typically comes from two different generations of investors: Baby boomers. This group tend to be retired (or approaching retirement) and they remember the hippie era. Their focus is on leaving a better world for their children and grandchildren. Millennials... Read more Read more

Whether you’re just starting out as an adult, or are already financially secure, you’ve probably heard your fair share of unwanted and unsolicited financial advice. In case you haven’t already learned it, the wealthier you get, the more interesting that advice can become! Some financial tips and advice can function like ‘Chinese whispers’. That is, what may start as a well-intentioned... Read more Read more

People sometimes say you can’t put a price on your time, though this is forgetting that your time is the one thing you can’t ever get back. Spending thousands on outsourcing household chores – such as cleaning, landscaping, and dog-walking – might not seem like a wise use of your hard-earned funds, but it can be worth every cent. These are the sorts of things you could do... Read more Read more

Knowing how much personal insurance you need is essential to make sure your loved ones and yourself are taken care of should something bad happen. The term “personal insurance” includes policies such as life insurance, income protection, health insurance, and trauma cover. While nobody has a crystal ball to know exactly what the future holds (meaning that we’d know exactly what... Read more Read more

Mortgage mistakes are nearly always costly, especially as collectively we all owe more mortgage debt than ever before. Here are the top five mortgage traps you should avoid, along with a few tricks to get your mortgage working for you. 1. Forgetting to shop around Many people make the mistake of using their existing bank and give other options no thought. Just as you would with... Read more Read more

Are you looking for ways to get your money working for you, instead of you just working hard for your money? American financial guru and self-made millionaire Michael Masterson has a few useful pointers for you in his book “Automatic Wealth”. He describes his book as a ‘how to’ for anyone who has the drive to achieve financial success. At first glance, the title ‘Automatic Wealth…’... Read more Read more