Uncategorized | NZ Muse

June 10, 2017

Link love (the #fittech edition)

NZMuse - Link love roundup with awesome reads from the week

I’ve always resisted applying any sort of structure to my running, or exercise in general.

But for the past few weeks I’ve been living life with a smartwatch and sticking to a running schedule.

Why? I’m helping a friend’s company test out their technology – and between the hardware and the app, I’m kinda hooked…

It makes sense, really. I’m an Obliger (according to Gretchen Rubin’s Four Tendencies) and so having a routine/schedule to commit to, plus the gamification and points accumulation, actually works for me.

I’m particularly fascinated by the data on my sleeping patterns – the proportion of deep sleep hours vs light sleep hours, and the poor broken graph that pops up on particularly troubled nights.

I’ve also downloaded an app called Seven, which gives you 7-minute workouts you can do at home, and just might change my life.

What’s your approach to working out – structured or not? Does fitness tech and data tracking interest you at all?

This week’s links

Is it terrible to want my BF to earn more?

Post-traumatic debt syndrome

Would you choose to work?

The 7-second rule

How to move toward your fears

A vulnerability hangover

June 7, 2017

Wednesday Wanderlust: 3 crazy beautiful places still on my NZ bucket list

Where are you going this year? Got any travel plans?

I get asked this a lot at work, and no surprise really – it’s been close to 2 years since my last real trip. Japan in 2015 was amazing but we’re doubling down on homemaking right now and for the immediate future! Any upcoming travel is probably gonna be domestic; luckily I’ve still got a few places to tick off.

By: Robert Engberg

Mt Maunganui

It’s one of our more famous beaches, and there’s a wee volcano to climb. Plus: hot salt water pools! Prime for a weekend trip, just a couple hours from Auckland.

By: lwtt93

Abel Tasman

It’s a secret shame that I’ve never made to the Nelson or Marlborough regions at the top of the South Island. I won’t be hiking the whole Abel Tasman track – that’s for sure – but I’m dying to explore parts of this coastal national park, on foot and kayak.

By: karlnorling

Lake Pukaki

And the Mackenzie region in general. I can’t wait to see Mt Cook and Lake Pukaki in the flesh. Every single photo I’ve seen is out of this world and almost too good to believe!

May 30, 2017

The one expense that seems like a waste of money … until you need it

Insurance might feel like money down the drain, but having been caught out without it in the past, let me tell ya: I learned my lesson early on. It’s one thing my family wasn’t really big on, and so it’s been a case of self-education in my 20s.

Contents insurance (for your crap)

So important IMO, and increasingly cheap. I’m seeing affordable renters’ policies advertised in mainstream media now, which is a new trend, and a good one.

Our flat was burgled while I was at uni and I lost a few things, most devastatingly, my laptop. Annoyingly, I had been pondering taking out contents insurance but decided we couldn’t really afford it at that point while scraping by on a student income.

I took out a contents insurance policy after that incident and it’s served me well since, through multiple break-ins and claims over the years. The cost dropped to just a few hundred dollars once I bought my house, which was a nice surprise.

Plus, if you’re still flatting, contents insurance can cover you in the event that you cause damage to the property you’re renting (just in case you inadvertently cause a fire, flood, that kind of thing).

Car insurance (for your wheels)

Even the shittiest scrap heap needs to be insured. If you own a vehicle, this is a must!

At the very least, third-party insurance covers you if you cause an accident. Even the tiniest ding to someone else’s car – the kind you think can’t possibly cost more than a couple of hundred dollars to fix out of pocket – almost certainly costs way, way more. Trust me on that one.

And of course, comprehensive insurance gives you peace of mind if you know you couldn’t afford to replace your car in a pinch.

House insurance (for the most expensive thing you’ll probably ever own)

After working my ass off to be able to have a place to call home, you can bet I want to protect it in case of fire, flood, earthquake or whatever else might jeopardise the roof over my head. (Also, the bank doesn’t give me a choice :P)

Life insurance (for what you leave behind)

To cover my mortgage in case I cark it. I don’t have dependents but this obviously becomes infinitely more important if there are kids in the picture.

Trauma/disability/income insurance (for your moneyyyyy)

More expensive than life insurance, but arguably more important. Financially speaking, your ability to earn is probably your biggest asset … and yet we often don’t take the appropriate steps to protect this.

ACC is meant to cover you if you have an accident but I can’t say I have a lot of faith in them. As we learned, it needs to have a defined cause – we lost out on a full month of income a few years ago when ACC refused to stump up a few years back. And it doesn’t cover illness, which is obviously another huge threat to your income – they say that illness stops far more people from working than accidents do. Plus, if you’re made redundant, you may not be able to get unemployment benefits (if you have a working partner, as again, we know all too well, and there are probably other exclusions too).

Insurance can help replace your income in the event of temporary or permanent disability, or illness. It’s not something we generally talk about, but I bet you more people than you think around you have income protection insurance (and a lot of those who don’t, quite possibly should). Redundancy cover, from what I’ve seen, is less common and quite pricey, but there are also rent/mortgage protection policies that can help cover your biggest cost, at least.

I prefer to pay my insurance premiums annually, and they almost all fall sometime in the first quarter of the year.

It’s a painful hit to absorb, but when I ask myself how I would feel if I wasn’t covered for at least the very basics, my gut instantly reminds me that I’m doing the right thing for peace of mind.

*Part of Financially Savvy Saturdays on brokeGIRLrich.*

May 24, 2017

Peer pressure: You’re never too old for FOMO!

YOU'RE NEVER TOO OLD FOR FOMO

I’m a pretty simple person. I don’t spend on much. My hobbies are fairly frugal.

But I still struggle sometimes to stick to my values.

Here’s the thing. Auckland’s a harbour city – you’re never too far from the water. They call us the City of Sails.

We have more boats per capita than anywhere else in the world.

Everyone’s into stand up paddleboarding these days. They’re all the rage.

Oh, and kayaking. Also super popular.

A surprising number of conversations at work involve one of these things. Weekend plans often include one or more of these activities.

I love the beach; I love the ocean.; I love being around the water.

But I don’t like being in deep water, I get sea sick, and I have terrible balance.

A boat would not suit our lifestyle. Nor would a paddleboard. Or a kayak. And that’s not even to touch the cost.

When everyone’s talking about the cool stuff they’ve been up to on the water though, it’s hard not to get carried away. Think I could be someone I’m not.

Peer pressure, even from people I have nothing in common with, is way more influential than I’d like to admit.

I wonder if I’ll ever outgrow FOMO.

*Part of Financially Savvy Saturdays on brokeGIRLrich.*

May 17, 2017

On knockbacks and building up career confidence

Confidence and career

It’s funny how certain things can shake your confidence to the core.

For example, in my professional career, I’ve never gotten interviewed for a job I didn’t get.

(I definitely DON’T count my history of part-time jobs while studying … it’s ridiculous how hard I tried to get a retail job and could never break out of hospo/customer service. But in the end I managed to crack the office admin market, and that suited me WAYYY better.)

So when a coworker at a previous job offhandedly mentioned that I wasn’t the first choice candidate to get that role, I had a bit of an internal meltdown. It all worked out, she assured me, for the best, because I was a great fit for the position. The preferred applicant had terrible references, while mine were glowing, which sealed the deal and led to an offer.

I put my streak down to the fact that although I’ve never had a 5-year plan or 10-year plan (or hell, any plan beyond about 6 months to a year, tops) when I HAVE set my sights on the next step, I’ve had a pretty good idea of what I wanted.

But I still suffer terribly from impostor syndrome. Clearly I know my shit to some degree, or I wouldn’t be where I am today. And yet most of the time I still feel like I don’t belong. Particularly as my personality is all kinds of wrong for the professional working world and its open plan offices: introverted, highly sensitive, a slow burner rather than an on-your-feet thinker, someone who needs a maker’s schedule rather than a manager’s schedule.

Although it’s a long, slow work in progress, I am finally shoring up my own confidence, independent of external factors. If that conversation were to happen today, I honestly think that would flow right past me. I mean that, for real.

Let’s take my reactions to a couple of recent situations.

One involved harsh criticism of something I worked on, voiced by someone much higher up the food chain than me. Once upon a time that would have devastated and humiliated me, and probably kept me up at nights in a furious tangle for days after. Instead, I was cool as a freaking cucumber throughout. I felt hardly any emotion at all. I had utter faith in the work and no doubts whatsoever. This was a view shared by and backed up by several other people – I promise it wasn’t a case of me having blinkers on or being precious about the whole thing.

Another had nothing to do with me but was one of those cases where it fell to me to straighten things out. This had me second guessing myself a few times, I admit. And I have never been the type of person to say “I am 100% sure that…” But I was, in fact, certain of this particular fact, and I stated this out loud. This was for a minor, tiny thing really … but mustering the courage to draw that line was a huge deal for me. And I was right.

Confidence – it hurts when it gets chipped away in big chunks, but it builds back up again over time without you even noticing.

May 10, 2017

There’s nothing like being able to throw money at a problem

SOMETIMES YOU JUST NEED TO THROW MONEY AT A PROBLEM

Some things are much better solved with money than time.

Some things can ONLY be solved with money.

Most of the issues I’ve had have fallen into one of the above categories.

When the dogs broke a window

When we had to replace tyre after tyre after tyre due to pesky nails turning up in the treads

When our pets required unexpected veterinary care

When our vacuum died

When I suddenly needed to get my wisdom teeth out

When our reactive dog really needed expert help

When we needed X rays done

When we simply needed help with keeping the house clean

When only prescription meds could help with skin issues

When we suddenly had to move house

When my glasses broke accidentally

It’s interesting to me to look at this list and see how many are health/medical related. (Also, dog related. Sigh.)

T has been seeing a chiro regularly and that’s a chunk of money for appointments that only last a few minutes at a time… but is well worth it.

Lately it’s also become clear to me just how much some of my coworkers must spend on healthcare. For health insurance. For specialist visits. For private surgeries.

As someone who never even goes to the doctor except in dire circumstances, it’s all so strange and foreign to me.

Melanie recently asked what the best thing is that money has afforded us.

Ok, we all know the “best things in life are free”. But really, what has been the best thing money has afforded you? Be specific.

— Melanie Lockert (@DearDebtBlog) March 30, 2017

Aside from the ability to sleep at night, like I told her, I would also add the ability to not worry about health costs. When you’re talking about your health, financial stress/constraints are the last thing you want to deal with on top of all that.

May 3, 2017

How often do you think about money?

No, seriously.

Constantly? Throughout the day? Daily? Every few days? Once a week? As little as possible?

I’d have to say, more often than I can consciously count. Some aren’t really active thoughts as such, but general emotions related to finances, if that makes sense – feelings tied to broader money issues that are never far from my mind.

Lately, of course, they’ve often revolved around the financials of having kids. Patently ridiculous given actual timelines, but the nervous nelly/overplanner in me keeps rearing her head.

Money makes the world go round, so no wonder if you have money on your mind more often than not.

Here’s another thought…

How often would you LIKE to think about money?

For me, it doesn’t really matter, I don’t think. As long as the thoughts and feelings are positive.

Therein lies the trap, of course. More often than not, those money thoughts come with stress and worry.

But our thoughts carry a lot of weight. There’s real power behind our internal stream of consciousness. The more uplifting our inner dialogue, the better we’re going to feel. And that flows through into what we actually do.

So, if you catch yourself thinking depressing, frustrating, anxious thoughts about your money – try to reframe those. It doesn’t have to be a massive shift. Something 10 percent more uplifting, for starters. You want it to be believable. Instead of “I’m never going to have enough money for X” try “I’m saving more and more money every month”.

Hack your brain and harness it for good. If those thoughts are getting you down, why not try a different tack?

How frequently do you really think about money? What specifically are those thoughts about?

April 26, 2017

How to use KiwiSaver to buy your first home

how to use kiwisaver to buy a house

Thinking about using KiwiSaver to buy a first home?

Honestly, KiwiSaver or no, buying a house is kind of a nightmarish process. I was going through some files on my computer the other night and came across some finance documents from my mortgage application days. I couldn’t bring myself to delete them in case I wind up needing them for something again, but I definitely did not linger on them. You can bet I clicked away FAST.

It’s been over a year, and thankfully the memories of that traumatic time have faded. But I thought I’d jot down the steps involved for anyone who might find it useful, before I forget entirely. And it seems like Auckland’s crazy runaway house price growth may finally have slowed. So if you are thinking about braving the market as a first home buyer, here’s a rough guide based on my experience of using the KiwiSaver withdrawal option for a first home.

1. Apply for HomeStart grant preapproval (if you meet the criteria)

The HomeStart grant is a feature of the KiwiSaver scheme that gives you a cash grant toward buying a first home. There are income limits (less than $85,000 for one, or less than $130,000 for two or more people), house cap limits ($600k for an existing house in Auckland or $650k for a new build; less in other regions of NZ), and you must have been contributing to KiwiSaver for at least three years.

Other criteria apply too – eg you’ll need to live in the house for at least six months and have at least a 10 percent down payment (although that can include the HomeStart grant itself, and of course your own KiwiSaver first home withdrawal funds).

With the HomeStart first home grant you can get $1,000 for each year that you’ve contributed to KiwiSaver, to a minimum of $3,000 and a maximum of $5,000. If you’re buying a new build, all of these figures double – $2,000 per year of contributions, to a minimum of $6,000 and maximum $10,000!

You can get pre-approval for the KiwiSaver first home grant, which is valid for six months. And you can do it all online. I received pre-approval within a couple of days via email!

Don’t leave it until settlement or you might miss out entirely – you need to apply, at a minimum, 20 working days before your settlement date. Get preapproved, seriously!

Note: I did not actually wind up using the HomeStart grant in the end, so I can’t speak to the latter parts of the HomeStart process beyond getting pre-approved.

If you meet the criteria for the HomeStart grant, then you will presumably also meet the criteria for the Welcome Home loan scheme…

2. Apply for a Welcome Home Loan (if you meet the criteria)

Welcome Home Loans are a government initiative for first home buyers who only have a 10% deposit. Not all lenders offer these loans. You can apply directly to the lenders listed on the site, or you can go through a broker (I used a mortgage broker recommended by a friend).

Getting preapproved took bloody ages, to be honest. The Welcome Home Loan application has to go to Housing New Zealand and I believe there was a backlog at the time I applied, and I literally had to wait a month to hear back.

Note: I did not actually wind up using a Welcome Home Loan in the end, so I can’t speak to the latter parts of the process beyond getting pre-approved.

3. Apply for a KiwiSaver first home withdrawal (anyone and everyone)

You can basically skip ahead to this step if you don’t qualify for/want to use the HomeStart and Welcome Home Loan options. You would want to have sorted out your mortgage preapproval before this step, though.

In my case, despite having jumped through all the hoops already, I wound up receiving some 11th hour financial help from family which meant I ditched the HomeStart/Welcome Home Loan path, and got a generic bank mortgage.

As soon as you sign the sale and purchase agreement on a house, apply directly to your KiwiSaver provider for a first home withdrawal. Again, do not leave this until the end! Your provider will probably require 10-20 working days to process your request for a KiwiSaver withdrawal as a first home buyer. I think mine took almost two weeks. You can request to withdraw a certain amount, or the full balance (that said, you must leave a minimum of $1000 in your account, so you can’t totally drain it).

If approved, your KiwiSaver provider will transfer the money to your lawyer’s bank account. It never actually passes through you.

A note about deposits and KiwiSaver

I didn’t realise this, but there are actually two aspects to the deposit involved in buying a house: the portion you pay the agent and the portion you pay the lawyer.

What we generally talk about when we talk about deposits is the amount you need to put toward the purchase price, from the lending perspective (usually 20% these days, 10% under the Welcome Home Loan) – which you pay to your lawyer’s account prior to settlement day.

But there’s also the vendor deposit – the money you pay to the real estate agent to secure the house. This may be payable upfront upon signing the sale and purchase agreement as in my case. In some cases you might be able to arrange to defer this until the day of going unconditional, but obviously from the seller’s point of view it’s in their interests that you stump up some cash upfront as proof of your commitment to the sale.

Realistically, I don’t see how you could use KiwiSaver for the initial vendor deposit. Depending on the timeframes involved in your particular transaction … if most of your deposit is coming out of your KiwiSaver, this might pose an issue.

You can’t use a HomeStart grant to pay the seller’s deposit, so that’s not an option. If you’re relying on using KiwiSaver withdrawal funds for the vendor deposit, you’d have to negotiate payment upon going unconditional, and a long conditional period. You need to send in your sale and purchase agreement with your withdrawal application forms, but it takes time to process all of that (10 working days minimum with my provider, for example). If the vendor insists on a shorter conditional period (5 business days is common), make sure you have access to enough cash in a pinch! I saw a post online the other day where the buyers took out an overdraft for this exact purpose, because they got caught out by this.

Here’s my attempt to visually interpret the cashflows involved during this process.

Buying a house in NZ cashflow - transactions process between purchase and settlement

For example, let’s say you have a 20% deposit, of which half comes from your KiwiSaver. First you might pay 5% to the agent, then 10% is withdrawn from your KiwiSaver and sent to your lawyer. You send the last 5% of your cash deposit to your lawyer. The remaining 80% is drawn down from your mortgage and transferred from bank to lawyer. This all adds up to 100% by settlement day and is finally sent to the vendor.

There you go – that’s my take on buying a house with KiwiSaver as a first home buyer! As I said, I can’t speak to using the KiwiSaver Homestart first home grant/Welcome Home Loan all the way through, but I can tell you for sure what it would add more complexity and paperwork at the end. Be prepared!

April 22, 2017

Link love (the masochistic edition)

NZMuse - Link love roundup with awesome reads from the week

Work has been taking up way too much of my headspace lately. (This may be why there are a total of 3 Ask A Manager links this week!)

Luckily, we had Easter this month, and Anzac Day next week (plus I wound up having two sick days off, which I spent sleeping and marathoning 13 Reasons Why. Holy hell, the feelings! Such a rollercoaster).

Much of it is self inflicted, and me being hard on myself (at least, I think it is). Any handy tips for learning to let things go and stop stressing yourself out?