Each week the New Zealand Herald and Newstalk ZB's Cooking The Books podcast tackles a different money problem. Today, it's why you shouldn't start living it up just because your house value went up. Hosted by Frances Cook.

If you're anything like me, your jaw dropped when you heard the change in Auckland house prices.

Between 2014 and 2017, average residential property values have jumped 45 percent. Your average house in our biggest city is now worth $1.07m.

While hopeful first home buyers will be crying into their avocado toast at this news, those lucky enough to be home owners already are probably pretty excited.

People tend to see things like a change in their house value, and lose their heads. They feel richer and start living it up.

Sorry to burst your bubble guys, but you really shouldn't be. 

Just because your house is a millionaire, doesn't mean you are. And you certainly shouldn't start living like one just because your house value has shot, well, through the roof.

There are both traps, and possible advantages, from these changing house values.

I called Hobson Wealth Partners head of fixed income Mark Fowler, to talk about the pros and cons for the latest Cooking the Books podcast.

We discussed the difference between real and paper wealth, the traps for those who get overexcited about increasing house values, and the ways to use house values to truly increase your wealth.

For the interview, listen to the podcast.

If you have any questions about this episode, or something you'd like me to investigate for a future episode, come and talk to me about it. I'm on Facebook here https://www.facebook.com/FrancesCookJournalist/ and Twitter here https://twitter.com/FrancesCook.