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