Generate is supporting my vision to improve the financial literacy of 100,000 Kiwis by sponsoring Keep the Change.Cheers Generate!Head to generatekiwisaver.co.nz forward slash change to find out more.
One of my goals is to help 100,000 Kiwis improve their financial literacy, and in turn, help create a better New Zealand.
Gener8 has a very similar goal, to educate and empower Kiwis to make smart, Kiwi-savvy decisions so more of us can be better off at retirement.That's why I'm stoked to have them on board as sponsors.
Together, we can reach more people and make this goal a reality. If you've never got KiwiSaver advice before, book a no-obligation chat with a Generate advisor at GenerateKiwiSaver.co.nz forward slash change.
They'll even put you in the draw to win 5k worth of vouchers just for having a chat, whether or not you decide to sign up.T's and C's on that webpage.A copy of the product disclosure statement is available at GenerateKiwiSaver.co.nz.
The issuer of the scheme is Generate Investment Management Limited, and of course, past performance does not guarantee future returns.
I'm in Prince's house, purple paint all on the walls, uh-huh Sitting down on this fancy couch and I can't see straight, I'ma stay, uh-huh 22, I'm in Paris, baby, got strippers tits in my face, uh-huh All up in a Bentley, I'm a Christian, uh-huh
Welcome back.You were listening to another episode of KeepTheChange.co.nz's Money Mail.We're sticking with our investing series and speaking to those people who may be on the edge about whether they should or shouldn't invest.
But also, all of you who do currently invest, we're getting some education around what it is that people sit on that means that they don't invest.
And you guys can take this knowledge too, and you might then be able to explain some of these things better to friends, family, siblings, et cetera, who don't want to, even colleagues, workmates, whatnot, who don't want to invest or who have objections to investing.
And this may help you have a different conversation with them.So I've called this one, you don't know how to invest.So this is part three.
And if we say why you haven't started investing is because you don't know how, well of course that makes complete sense because it's 2024, we have 5G internet, not 3G or 4G, 5G, fibre, whacked into the wall these days too, thousands of resources and somehow you believe that you don't know how to invest.
A reminder, going back to one of the earlier lessons in this series, people have been investing since the 1700s. That's a long time ago.So let's be real, if you don't know how to, you just haven't learnt how yet, okay?Yet being the key word.
In week one I said so many people have come and gone before us because they wanted to invest.You have to want to in order to then learn the how.So investing is a learning journey.
I repeat, you learn as you go and I still am every single week on my journey of investing. Now, for a refresher, we looked at the list of reasons people gave when they said they haven't started investing yet, but they would like to.
Reminder, they would like to start investing, but they haven't yet.The three were, one, so not just I haven't invested yet.No, they want to.They want to invest, but they haven't.
So they're signalling that they would like to be investing, but they haven't yet.These were the key three that I dug out.One, fear scared.Two, unsure how.And number three, analysis paralysis.So we're into part two of the
The three, so better way to put it, we're into the unsure how, the second part and we've got analysis paralysis to go as well.
So for the unsure how people, fair enough, like I said before it's only 2024 where we have the internet with information at our fingertips.No I'm not letting you off that easy, come on. You don't even have to walk to the library anymore.
But let's be real, would you?Would you actually go to the library?Would you buy the investing book?Would you hire it out?Because people will often say to me, I'm like, I brought this book.
They're like, oh bro, you could have just got that from the library. Oh, I know, I buy a book because I can afford to and I might want to keep it, but I also want to thank the person who has written it.
And then I got this big message from someone being like, yeah, but I'm still supporting them by listening on Spotify.I'm like, okay, okay, okay.I bought a book, just leave me alone.
Jesus, if you want to bloody hire one out from the library, you know, that's okay too if you want to listen to it, if you want to steal it off of YouTube or whatever, you know, you can, you'll find your way, you'll find your reasoning behind it, it's all good.
But let's be real, a lot of these resources have been at the library for a long time.And we could have gone and got them because people have been investing since the 1700s.But would we go?Would we go to the library?
I used to go to the library a lot, not because I'm an A-grade nerd, but that's probably also accurate, but because I couldn't afford a office.So I would use the library as a co-working space and I also would do a lot.
at university prior in the early days, so prior to going out on my own and having a career and all that sort of shit, I would go to uni at night time, again, A grade nerd, yes, correct, but I would do that to study and I'd just like zone in and dial in.
So then when I had to go back into full, like shit, you need to send it to try and get this business going and dig in, I would sort of go, I went back to I guess what was comfortable, go to the library and put their head down, put some,
nor put some headphones in and there's no one talking and just work and work and work and work and guess what, you get a gig free internet, unbelievable and you had a nice place, nice and warm place to do work and you don't have to pay any office space.
dreamy way to start out in business.So if you're looking for a co-working space, I suggest the Auckland libraries around the city.Google them, there's a number of them.My favourites were Takapuna, great view of the ocean.
It's like, oh, I'll check out my view from my office.The Devonport one is epic.I think there's one like Northcote, that might be one of the newest ones when I was on the scene, let's say, on the library scene.And where else?
Didn't do the city one, not for me.Where else would I go? I think that, oh, Parnell.Parnell was, you know, normally my haunt.Got told off in there a couple of times.
Anyway, this is not what this is about, but I was investing in myself and doing the work in there, but you had like resources all around you too.
And sometimes I would stop and read some stuff and have a look at different stuff, but I was really using it as sort of an office space, but
Libraries have really changed in this day and age, but there would always be people coming and going and doing different things, and it always fascinated me.But I once read that only 3% of people ever make use of the library.
Shout out to all those people that don't live in Auckland as well.Oh, Remy Wearer, that's quite a swanky one.He walked down to the cafes and whatnot.
Yes, I know you guys exist, I'm not an Auckland through and througher, don't worry, but this is just my journey and that's the libraries that I went around.
But I worked in the Danny Vuk library once, Simon who's been on the pod, he dropped me off and he had to go check on one of his massive sites with the big work that they're doing, one of the most successful companies in the Manawatu, Stringfellows.
And I'm like, dude, I got to go respond to some emails there, give me
an hour in the Danny Vuk library across from the KFC there, hell of a KFC, believe it's to be one of the smallest in the Southern Hemisphere, and he picked me back up on the way through there.I've done the Paani one.
Anyway, libraries, it's not even what we're supposed to be talking about, but. I once read that only 3% of people ever make use of the library.Go and check your one out in your local environment.That's where I was going with that.
The resources are there for us though.They've always been there for us.And if anything, now we live in a day and age of information where it's just on our phone.It's all right there on a screen in front of us.
So when we have answers like, I don't know how to, You've got to be really honest with yourself and be real of, is that actually a good enough answer anymore?Because there's so much information around us.
So the question is really, do you actually want to know how?Because if you want to know how of just about anything in this 2024 year and moving into 2025, you can find it.
You can find this information, you can get it in audio, you can get it in video, you can get it in written, you can get it in step by step guides, there's so much information there for us for what it is that we're trying to figure out.
Someone could identify that in their answer too when they responded and said, to be honest there's a lot of info online so no real excuse, just lazy to read it.
I like that, at least they've got some good ownership of their how to, that they don't know how to, they know deep down that all the answers are online, they've got no excuse, they're just lazy to read it.
So I guess my question then would be as a way to be like, okay, let's force ourselves to get uncomfortable here.Are you prepared for the consequences of not investing or not passing that knowledge to your kids?
I often say this, if you're scared of something, then think, you know, is that what you're going to teach your children?You don't want to learn it?It's too late for me, you know, I've never really been into that.
I'm not sure what sort of investor I want to be or whatever.Is that what you're going to teach your kids as well?You're going to be stoked when they come home and they think like that. I don't think you're going to let it fly with the mate.
So maybe don't do it for you, do it so you can pass the knowledge down to the next generation or different people that you know, if they get started earlier than you, can really make use of that knowledge. Let's think about this too.
KiwiSaver is nearly 20 years old and it's got over three million users.Are you one of them?Well if you are, you're already investing.So you've got a foot in the door already.So do you know what your KiwiSaver is invested in?
Do you know how much you contribute?Do you know what it'll be worth when you're 65?You might wanna start there and just accept, oh, I am an investor.I invest via my KiwiSaver.Epic.Well what is it? What am I contributing?What's it investing into?
And what's it projected to be at 65?
Go on the sorter.org calculators, your KiwiSaver provider might even have a way to tell you what it's expected to be at 65 and it might give you a fright or it might get you excited or it might just bring you a little bit closer to it.
But you wanna find this info and like I say, if you get closer to this info by looking at your KiwiSaver provider and this stuff, then you're moving forward with investing, not sort of holding it at arm's bay going like, I don't know how.
And this is also why Generate KiwiSaver scheme, they provide financial advisors for everyday Kiwis to speak to, to help guide people past this sort of unsure how piece.
So they meet with people, they talk with them, they go into workplaces with financial advisors,
so that people can then talk about what their goals are and what it is that they're wanting their KiwiSaver to achieve and they can ensure that they're matched up with the right sort of investments for their risk profile and for their future goals.
So you've now even got the likes of Generate who are providing financial advisors for everyday Kiwi.
when once upon a time, not that long ago, you probably needed a fair bit of coin in order to be able to get access to a financial advisor, which just wasn't really the done thing because the incentives were with people who have got more money and that would be who you would service because then your commission is going to be higher because you're gonna be helping them deploy
their cash.So that's kind of my take on from what I've seen in the financial services industry.
Some may say that that's unfair, but now the barriers are sort of broken where there are tools and there are ways that individually we can DIY invest or we can get access to financial advisors that will help us.
So here are some actions for those people who believe, and I've got underlined believe, because they believe that they don't know how. They just haven't learnt how yet, going back to the start, but they believe that they don't know how.
So number one, check your KiwiSaver account, know what you're invested in, how much you're contributing, and your projected balance at retirement.Number two, contact your KiwiSaver provider.
Ask if they offer any additional investment funds outside of your retirement account.These can be accessed at any time, unlike your actual KiwiSaver fund.So why I say that is because
If you've already got a KiwiSaver account, they're gonna know who you are, they're gonna have your details, and they might say to you, oh yeah, we actually have this fund that you can invest into here as well, if you would like to.
Here's how to set up automatic payments, et cetera.And then you're like, oh, shit, sweet.
So you're kind of just contributing to your KiwiSaver that you're currently doing, but on the outer, via a fund that they've, the fund is probably very similar, if not the same,
and they let you invest into it, and then you can withdraw the money if you should need it, but hopefully, you know, you don't need to, but you might find like, oh, wow, okay, you're actually way closer to doing this more consistently than you realize.
Now, as an example, I did this with Generate KiwiSaver's thematic fund,
Now we had someone on the podcast who taught us about the thematic fund and it was really interesting to find out how that works but for a lot of people it might be over people's heads but it just shows you what some of these KiwiSaver providers are doing
And then, you know, we can all get closer to the stuff because it's been built for us.And like, we don't need to go out and find, you know, individual stocks and all this sort of stuff.It may be pre-built for us.
So, you know, of course, I'm going to say Generate because they sponsor the podcast, but a lot of Keebysaber providers have funds these days, but there are also ETFs and different things like that.
You've got to get yourself to the start line and go looking for some of the information and then try and find what's going to be
something that you can make sense of that you're comfortable to do and we'll carry on into some other resources soon as well.So I just thought that this could be a comfortable way to start investing
via your KiwiSaver provider, and they might even have resources that you can access about your own individual investing guide as well, outside of KiwiSaver.
So find out, maybe drop them an email or go on their website and have a look at their learning section.Number three, explore educational resources like Hatch's Learn Hub and Sharesies Learn to expand your knowledge base on investing.
Now I am not saying sign up to both of them. I am just saying that when I googled some resources for everyday people, guess what, they've got shitloads.
Both Sharesies and Hatch, and I didn't even go any wider than that, they both have hubs of learning documents.So here are two links to resource centres that will have you doing more homework than your favourite school teacher.
The Hatch Learn Hub is hatchinvest.nz forward slash learn and the Sharesies Learn is sharesies.nz forward slash learn.Now if I just click into the Sharesies one as an example, let's see what pops up.
So they've got different podcasts and whatnot but you can go to it, they've got a specific investing basics, ready to start your investing journey.Interest, save or KiwiSaver, five beginner investor mistakes.
How do I make money from investing in shares?Investing 101.How to start investing?November 2017.It's now 2024.I think they started in 2017.
So, you know, someone's asked all these questions before you and someone's had all these same objections and smart people have gone, okay, well, I can help break the back of this.And they are trying to educate more Kiwi people
on how to start investing, how to get ahead financially and to get going on their journey.And I'm not just talking about sharesies here, I'm talking about likes to generate and different providers.
And there are just a number of Kiwi people now working on this big problem to help people get to the start line and put the guardrails up and educate people as they go through their investing journey.
Now of course it's easy to feel lost or think you're missing some special knowledge but trust me, if you didn't go to a private school or if you didn't do economics or you didn't do accounting or your parents didn't buy any shares, it doesn't matter.
I promise you it does not matter.You don't need to be a genius to start. However, no one is going to read the articles for you.No one's gonna go into those resources or reach out to your KiwiSaver provider.It's gonna have to be you.
Those platforms as well, they're not gonna pick the stocks or the funds for you.Maybe if you meet with a KiwiSaver advisor, you might be able to say, oh, hey, like, you know, okay, there's my KiwiSaver, but then I've also got these funds over here.
What would you suggest that I invest in?Or do you have any pointers for me?Like maybe they'll give you a steer.
But it's not like you're going to be ringing up sharesies on Monday through to Friday, being like, hey guys, just signed up to your platform.What stock do I buy?That's not their job.That's not what they can do.
And I doubt that even if you email them or go on their live chat, that they will be able to do that.Even your KiwiSaver provider, it's too risky.
There's too much chance that they don't have all the background information to figure out where are you going?What are your goals? how much do you have, when are you gonna need it, et cetera, to just go like, oh, buy the stock, yeah, you'll be sweet.
That's not how it works.So these platforms are gonna guide you, but they're not gonna pick the stocks for you.So you'll still need to be the one to take action.
But there is so much info available now, you need to understand that you don't want to use it. You have to accept that.You've got to own that and you've got to realize you've decided that.
If you think that you don't know how, when there's so much available information, you have to understand that you've decided that at some stage, but you can change that.
by accepting that now you know that there is info out there, and that many people have gone before you, and that you can be one of them too, and that maybe you're already investing via your KiwiSaver, you can own and accept it, that if you really want to, the info will be there for you.
So start with knowledge, then build to action, and then habit.That's the key, right?We get a bit of education, then we take some action, then we realise, well, this isn't so bad, and then we create a habit.Now, I'll give you an example.
Someone said to me, right, I listened to a rant that you did around why people aren't investing.And they said, I finally signed up to an account.I learned a bit about it.I learned about a fund.
I started with a dollar and then I moved to $5 and then I set up an automatic payment and it's $10 and I've been doing it for months. Epic.Education and knowledge, action, and then create the habit.
So maybe, you know, start small and then, you know, it just, action leads to action, as I often say.It'll turn into something over time.So you can know how if you choose to.
Investing is very within your reach in this day and age, especially in New Zealand.So start by spending 10 minutes today looking up your KiwiSaver account or browsing one of the resources linked above that I've mentioned in the money mail.
Or what about this?Maybe curate your social media feed to get a bit closer to some of the New Zealand investing companies that post resources that you can learn from.
If you think that there's something that you need to learn in your life, go and find people who are speaking about it and get it in front of you, much like people follow Keep The Change.But I've got to do the same thing.
I was thinking about this on the way in here where I was listening to a YouTube video around cryptocurrency and different things in the economy. And that came up because I curated my feed to show me that because I wanted to learn more about it.
And then going back to what I was talking about before, knowledge, action, habit, well, I kind of thought, oh, right, well, that sounds like a good company to invest in based off of all this analysis that someone else had done.And like, man, okay.
And so then I put some money in to get a bit closer and my life didn't change, the world didn't end. And then I thought, oh, you know, maybe I will invest into that more consistently.
So then I set up an automatic payment and I've been doing that for some time now.But if I didn't find that knowledge and get it and then take action, you know, now I'll be looking back and like, man, I knew I should have done that.
I knew I should have done that four years ago. So this stuff can take time as well, you have to understand that.Investing is not gambling, it's not like okay great, I picked this stock and it went up 40% in the next year.
Yes, I'm awesome, I put my $10 in it, it's worth 14.That doesn't really work like that, we're trying to deploy money for a longer time period and give ourselves options in the future.
But that's a good way to invest too, in yourself, is get rid of five Instagram accounts that wind you up or bring you negative emotion or piss you off or whatever, and unfollow them.
And then follow five that might be better for you, or will be better for you, might be around mental health, physical health, better eating, investing, learning about the economy. curate your social media.That's a good way to invest into yourself.
And then once you get that information, make sure you do something with it.Of course, nothing happens if we don't take action.So small steps lead to big changes that compound over time, and you're in more control than you realise.
You're one of over, we've nearly gone past 11,500 subscribers to the Money Mail, which is pretty cool.KDC Podcast had a bit of a dip in October.There's a lot of people watching on YouTube now, which is good.
with some of the podcasts that are going out over there.Did you know I've posted over 500 videos on YouTube?
So if you don't know, I do some different content over there where I just basically hit record on a video and rip into it and see where I get to for 10 or 15 minutes.And I just got my first passive income payment of $275.It's pretty cool, eh?
Again, not really life-changing, but pretty epic.But I've done 500 videos.
500 videos, there's shorts, there's long form, there's all sorts of different things, there's webinars, there's podcasts which I've been trying to shoot over the years and I'm taking it a bit more seriously, especially over this last year and I'm sort of aiming for 5000 subscribers and that will be hopefully by the end of January, might be there, nearly at about 4.5 but yeah a lot of videos are now that
it's got so much viewership as such, then I think, I can't remember what the criteria are, but basically YouTube say, right, we're gonna give you a cut of the ads that we're running across your videos.So then I got 275 bucks the other day.
So of course we then spend that to invest that.
back into the audience, making more content, putting ads in front of people, trying to bring more people towards learning about their financial literacy so that what we can do is we can help educate 100,000 people to understand more about financial literacy because I believe 100,000 people with better financial literacy will create a better New Zealand.
and the team at Generate KiwiSaver Scheme are helping me to reach this goal.Head to generatekiwisaver.co.nz forward slash change to find out more if you need help in the KiwiSaver space.
But I think that if we have more people who are better with money through knowledge and action, action, together we change the wealth of the nation.That's a big, ambitious, lofty goal.
But I do think we are doing a pretty bloody good job, all of us, not just I. So it requires you guys too.
to actually learn, and take action, and teach other people, and set yourselves up, set your kids up, and this shit is gonna have a big fucking snowball over time.A big snowball.A massive one.We're gonna be bigger than Antarctica.
They might change their name.Keep the Antarctica. Don't know where I'm going with that.Anyway, if you wanna check out the YouTube channel, it's at KeepTheChangeNZ.You should be able to find it.
Another cracking lesson to get us thinking about investing.We've got analysis paralysis to go.
Before we go, someone said, hey Luke, if you're gonna promote Hatch and Sharesies, you should include the referral link so you and Hoover signs up gets five bucks each. Money for nothing for you and a little boost is an incentive for new investors.
Fingers crossed it's worth en masse.That's probably a really good point in terms of people might get five bucks.Like, I don't look into that.I didn't do it and I don't do that.It's lazy.Yes, it is lazy.
However, I also, you know, don't want people being like, oh, I can click on that and see your referral link.That's why you're doing this.Oh, that's why you said go to them.Oh, you're just trying to get five fucking dollars.
Do you think five dollars is gonna change my life?Seriously?A hundred of you did it though. YouTube just gave me $275.I'm about to get a fucking island and retire.Don't need $5 from shares each time someone signs up.You know what I'm trying to say?
You know, you always just have those people that are like, so then, then they don't take the lesson seriously because they feel like, oh, you're playing me.You know, trying to make this five bucks or something.So I don't have a referral thing.
I get it.People say to me all the time, bro, what are you doing, man?You're missing, you're leaving money on the table and stuff.I'm like, yeah, you'll be blown away how much money I leave on the table.I do all the time, but
My thing is if I can provide enough value and be genuine enough, then eventually it comes back around.
And yes, of course, I monetize things and different avenues of my life at different times and whatnot, and people are like, oh no, that doesn't line up with that.
You know, I'm trying to figure my thing out and I'm trying to find ways to make things sustainable.I'm not too worried about $5 from whoever for each person that might sign up.But I do like the fact that if they do, then they might get a bonus.
So maybe, you know, if you haven't started investing, you could look at some of these platforms, like whether they do give you a free shot as such to be able to buy a couple of shares to get you started.I just don't know enough about that.
and haven't looked into it but yes, shoutout to all those people who do think I should have some sort of referral, I get it, I'll probably do things like that in the future but for this series I didn't want it to be undone by some people's thinking that that's why I'm writing these, all of it's leading to trying to sign you up to ensure that I've got some free $5 shots or whatever but hey maybe 1,000 people do and oh maybe I should have done the $5 grand.
Anyway, it's always fun what people email me back.I do enjoy it and I try to respond to people as well.What was the other one?Oh, someone said to reply, I don't know how is the worst excuse there is.There's more info than there has ever been.
So no disrespect to all of you who say I don't know how, but I actually have this in a coming up money mail. I think it's the next week's, I think it's the analysis paralysis one.
People can't figure out how to start investing, but they can figure out how to sign up for buy now pay later pretty easily and how to pay everything on the credit card for hot points or air points to get the free toaster.
Imagine if people put the same effort in that they do to get a free toaster into learning how to compound their money.This country would be rolling in it.And it is a pretty good point.
And I know people will get a little like, you know, very defensive about that.Oh, there's nothing wrong with my credit card and I get my free toaster and whatnot.
This is just a good example of, yeah, but if you get rid of that thinking out of your life and go, right, what's possible by compounding growth and investing in building income and adding value and things like that, you start to not worry about the free toaster because you just end up outgrowing it.
But it is buzzy that a lot of people do know the best buy now, pay later platform, the best credit card and stuff, and in debt and spending and consumerism, we know But when it comes to investing, we're like, oh shit, I don't know how.
I'm not sure which the best thing is.I'm scared of losing my money.And I've looked at the eight different things and I still am not sure.So I haven't taken any action.
But it doesn't happen when we think about spending and I think that's because we get something back so if we spend via buy now pay later but we get the pair of shoes, we're like OK no one's taking advantage of me here baby, I haven't lost any money, I got my shoes, my overpriced shoes that are marked up 60,000 times and I paid for the sneaker cleaner as well at a 4000% markup.
You know, no one's taking advantage of me.And I put that shit on credit, and I'm going to pay it back over the next six weeks.Boom, baby.Boom.I didn't even have to pay the whole amount.But yeah, I'm not going to invest for the next six weeks.
Don't be stupid.Got to pay off my shoes.But anyway, the consumerism and the spending people that market to us, shit, they do a good job.Man, they do such a good job of getting cash out of our pocket.
And you have to remember, I've said this on another podcast, The investing companies, they got to compete with that to try and tell you like, oh, you should probably not spend that.You should think about investing for your future.Boring.
I ain't doing that.No wonder they got to be in pastel colors and be popping up with different content and whatnot, because they got to try and beat the consumerism machine.Anyway, better get out of here.Be good.See you next time.
I can't see straight.I'ma stay on 22.I'm in Paris, baby.
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