The gap between knowing about money and actually managing it well is wider than most people realize. In this enlightening conversation with financial expert James, we unpack the crucial difference between financial literacy and financial capability—a distinction that explains why even finance professionals sometimes struggle with their personal finances.

Financial literacy encompasses understanding concepts like budgeting, investing, and interest rates. But financial capability goes deeper—it's about consistently applying that knowledge in real-world situations. As James explains, "You could be working in a bank for 20 years and still be spending more than you earn." This capability gap affects people at all income levels, from those struggling to save for their first home to high earners who somehow manage to spend more than their substantial salaries.

For those looking to bridge this gap, we explore practical steps toward financial capability. We discuss valuable resources from New Zealand authors like Martin Hawes, Mary Holm, and Liz Coe who provide locally relevant financial perspectives. James emphasizes the importance of setting clear financial goals, creating a functional budget, and regularly reviewing expenses—particularly those sneaky subscription services that drain your finances without delivering value. We also explore how modern banking tools can simplify the budgeting process by automatically categorizing your spending and highlighting areas for improvement.

Whether you're just starting your financial journey or looking to refine your approach to money management, this episode offers actionable insights to help transform financial knowledge into real-world results. Listen now to discover how you can move beyond financial literacy to true financial capability—and take control of your financial future.

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Navigating the path to homeownership involves more financial considerations than many Kiwis realize. While you're busy saving for a deposit and checking interest rates, something as seemingly innocent as your Afterpay account could be silently working against you.

We dive deep into the world of Buy Now, Pay Later services – those convenient, interest-free payment options that have revolutionized how we shop. From Afterpay and Laybuy to ZipPay and newer entrants like Genopay and Klarna, these services have become ubiquitous in our daily spending. But here's the kicker: banks and mortgage lenders don't see these services as benign conveniences; they view them as debt commitments that directly impact your borrowing capacity.

The reality might surprise you – even if you're diligently making payments and never incurring late fees, those regular BNPL transactions appearing on your bank statements tell lenders a story about your financial management. When these services are being used for essentials like groceries (yes, that's happening now!), it raises serious red flags about budgeting habits. We share practical advice on how to manage these accounts when applying for a mortgage, dispel some common myths about timing, and explain exactly what mortgage advisers can do to help present your application in the best light. Whether you're a devoted Afterpay user or occasionally dip into BNPL options, understanding their impact on your homeownership journey is essential knowledge for any aspiring property owner. Ready to make sure your shopping habits aren't derailing your property dreams?

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What makes financial advice truly valuable in today's world? Nick Hakes, CEO of Financial Advice New Zealand, brings global perspective and fresh insight into how advisors help Kiwis navigate their financial journeys toward better lives.

Nick shares his fascinating journey from working in Australia's financial sector to Southeast Asia before returning home to lead Financial Advice NZ. His international experience offers unique comparisons between regulatory environments, highlighting New Zealand's principles-based approach as more conducive to delivering accessible, understandable advice without overwhelming documentation.

The conversation delves into what distinguishes professional financial advice from simply walking into a bank. As Nick explains, advisors don't just manage money - they help clients articulate "what their good life looks like" and navigate both emotional and financial decision-making. This dual benefit results in clients being not just financially better off, but experiencing greater peace of mind and emotional wellbeing.

We explore the industry's collegiate culture where advisors support rather than compete with each other, creating communities of practice that enhance everyone's skills. Nick outlines challenges in attracting diverse new talent to the profession while describing exciting initiatives like the upcoming National Advisor Conference and a groundbreaking collaboration with the Retirement Commission focused on financial capability education starting from school age.

Perhaps most compelling is Nick's passion for making financial advice more accessible to all New Zealanders. His vision encompasses building pathways for the next generation of advisors while helping consumers recognize the value of professional guidance through life's defining financial moments. Listen now to understand how financial advice is evolving to meet the needs of modern Kiwis.

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Auckland or Wellington? Where can Kiwis actually afford to buy a home? We dive deep into the startling affordability gap between New Zealand's two major urban centers, comparing hard data that reveals which city gives homebuyers more bang for their buck.

Drawing from 2024 Infometrics statistics, we unpack the critical metrics that matter to potential homeowners. Wellington shows promising signs with an affordability multiple of 6.3 – meaning the average household earning $148,000 faces a property price of $931,000. This places our capital region within striking distance of what financial experts consider a reasonable debt-to-income ratio.

The picture changes dramatically when we look north. Despite Auckland's higher average household income of $163,000, its eye-watering average property price of $1.275 million creates a multiple of 7.8. This significant difference means Aucklanders must stretch their finances much further to enter the property market. We also explore how both regions have improved from the market peak of 2021, when affordability ratios were even more challenging, with Auckland reaching a multiple of 10.

Beyond the numbers, we consider what these statistics mean for Kiwis making decisions about where to live, work, and invest. Whether you're planning your first home purchase or considering a regional move, this data-driven comparison provides valuable context for navigating New Zealand's complex housing landscape. Have a region you'd like us to analyze next? Reach out and let us know!

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Are you aware of the crucial role credit scores play in securing your dream home? In our latest episode, we discuss everything you need to know about credit scores, including how they are calculated and what lenders truly look at while evaluating these numbers. With a credit score being a fundamental aspect of the home-buying process in New Zealand, understanding its nuances could mean the difference between approval and rejection for your loan application. 

We dive deep into the different ranges of credit scores and emphasize the importance of knowing yours. By checking your score through trusted agencies like Centrix, Equifax, or Illion, you can empower yourself with knowledge essential for navigating the lending landscape. Our hosts share personal insights and stories, including how many banks view credit scores within the context of your overall financial situation. Even if your credit score isn't where you wish it to be, there are always steps you can take to improve it!

Throughout the conversation, we highlight tangible tips for enhancing your credit score—everything from ensuring timely bill payments to reducing existing debts. We also discuss how even those with defaults on their credit history can still find pathways to secure a mortgage. Listening to this episode will equip you with the necessary strategies and confidence to take control of your credit situation successfully.

Feel free to reach out for tailored advice from your mortgage advisor, as they can guide you through your specific circumstances. Don't forget, the journey toward homeownership might feel daunting, but with the right insights and support, it is achievable. Join our conversation! Subscribe, share, and let us know your thoughts!

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Budgeting is often dismissed as a dull subject, yet it holds the key to achieving your financial dreams. We dive into the core elements of budgeting in this episode, emphasizing that understanding your income and expenses is the foundation for financial stability. We'll explore various strategies for tracking spending, whether through traditional methods or using technology to gain insights into your financial habits.

You’ll hear practical advice on categorizing expenditures and identifying areas where you could cut back. We'll discuss how even small changes can lead to significant savings, providing listeners with the tools they need to create a budget tailored to their goals. The conversation pivots around actionable steps that listeners can take today to improve their financial situations, covering fixed versus variable expenses and offering insights into smarter spending.

Throughout this episode, we underscore the importance of having a proactive approach towards budgeting—not just to save but to position oneself for greater financial confidence and independence. Whether you're saving for a home deposit or planning for your future, budgeting is an essential skill that empowers you to control your financial destiny. Tune in for valuable tips, and discover how to put your budget to work for you. Don’t forget to subscribe, share your thoughts, and reach out for our budget templates to kickstart your journey!

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Are you a first-time buyer contemplating whether now is the right time to enter the property market? We delve into this crucial decision as we explore the benefits of owning a home versus continuing to rent. Many first-time buyers can enter the market today with just a 5% deposit, making it more accessible than ever before. Given the current climate, the discussion includes the reality of interest rates that currently hover around 4.69%, presenting a remarkable opportunity for prospective homeowners.

Throughout the episode, we emphasize the importance of planning and saving for that initial deposit. With strategies in place, it's possible to set aside a substantial amount each month, helping to realize the dream of owning a home sooner than expected. We share personal experiences and insights drawn from working in the field, aiming to demystify the process and empower listeners to take action.

It's an exciting time for first-time buyers, but we urge you to consider your options carefully. With changing governmental support and market conditions, there is no better time to engage in discussions about your eligibility or the steps to purchase a home. Join us for this enlightening episode, and let’s navigate the path to home ownership together! We encourage our listeners to reach out, subscribe, and share your thoughts, helping to create a community around first-time buyer experiences.

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Get ready to dive deep into the essential process of calculating net worth. This episode explores how knowing your financial position can clarify your decisions and help shape your future. We break down the simple formula of assets minus liabilities, making it easy for you to assess where you stand and where you want to go. 

Through engaging discussions and real-life examples, we guide you on identifying your assets, be they property or investments, while also examining common liabilities like loans and debts. Understanding this balance is not just about tracking numbers; it’s about mapping out your goals, whether it's buying a home, saving for a dream trip, or planning for retirement. 

Gain practical insights that inspire you to take charge of your finances! Tune in, discover your net worth, and let us know your goals! Share your experiences with us, and don’t forget to subscribe and leave a review!

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Join us in this enlightening episode as we delve into the world of financial empowerment with Terri Watson of the Healthy Wallet Project. Terri's compelling story showcases how she transitioned from financial despair to a fulfilling career dedicated to helping women gain financial confidence. She opens up about her family’s financial struggles and the journey she undertook to reclaim control over their finances while supporting others on a similar path. 

This episode is not just about numbers—it's about breaking the stigma associated with financial discussions, particularly for mothers. Terri introduces listeners to the Healthy Wallet Project, a community-driven initiative designed to provide essential financial education and support. With relatable anecdotes, she underscores the transformative power of community in fostering courage and resilience among women facing financial challenges.

Throughout our conversation, we tackle significant topics such as money mindset and the impact of societal expectations. Terri shares practical advice on how to shift one's perspective on money, emphasizing that everyone, regardless of their current financial situation, can take actionable steps towards improvement. By addressing beliefs rooted in scarcity and fear, Terri helps listeners to reshape their financial narratives. 

Rich in storytelling and insights, this episode encourages listeners to confront their financial fears, set achievable goals, and embrace a mindset rooted in abundance. Discover how small steps can lead to significant changes, enabling you to create a life you envision for yourself and your family.

Don’t miss this inspiring conversation! Be sure to subscribe, share, and join us for more uplifting discussions about financial wellness and empowerment.

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Ready to make sense of the latest Official Cash Rate drop? In this episode, we dive deep into how the recent 50 basis point cut can significantly impact homeowners and those considering buying a house. This is more than just numbers—it’s about real people and their financial futures. As we break down the implications of falling interest rates, we touch on everything from reduced mortgage repayments giving you more room in your budget, to how this could open up new opportunities for first-time buyers who previously felt sidelined by high rates.

In our lively conversation, we assess the benefits and challenges that come with these shifts. Who’s winning? Homeowners with floating mortgage rates are poised to gain financially as their costs drop, while those reliant on savings accounts may see less favourable returns. This dynamic creates a ripple effect throughout the housing market, prompting many to re-evaluate their buying potential in light of new borrowing assessments as banks adapt to these market changes. 

As we look ahead, we also share predictions about the trajectory of interest rates and urge listeners to seek personalized advice tailored to their unique circumstances before making financial commitments. There’s much to discuss, and we want you to be informed and empowered—so tune in, engage, and let’s navigate this evolving market together!

Read More Here - https://www.rbnz.govt.nz/hub/news/2025/02/ocr-375-ocr-reduced-further-as-inflation-abates

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