What is your net worth? $1,400,000
At what age did you become a net worth millionaire? 30
What region of New Zealand do you live in? Tararua District
How did you accumulate your net worth, what are you invested in? We have bought and sold three properties using the capital gains to get us into a 100ha farm, which we then also subdivided off a 4ha lifestyle block to reduce our mortgage. We also have a type of agricultural contracting business. We never buy brand new gear, always paying cash for it when we can afford it.
Farm - $1,800,000
Plant + Machinery - $170,000
Kiwisaver + ETFs - $44,000
Cash - $45,000
What was your highest average household WEEKLY income after tax? $2,000
What is your career? Parents! Farmers and Agricultural contractors. Also had a career in healthcare before kids.
Do you have children? YES
Do you have a tertiary qualification? YES
Did you inherit any of your money? YES
If YES, how much did you inherit? $10,000
What's the approximate value of your house? The farm is $1,800,000
Are you debt free now? NO
If NO, how much debt do you have and what is it for? $600,000 mortgage left on the farm.
Are you in KiwiSaver? YES
Were you taught about money? NO
What is the most enjoyable thing you do with money? We get to spend time on the farm with our kids, who get a rural upbringing and see us working hard which is really important to us, to instil a work ethic in them.
Do you use your money or your time to help others? NO
If YES, can you please elaborate. I think because we are young still people don't think we know much about money.
What is your greatest financial win? Buying a house in a shitty street in a town in Hawkes Bay in 2016 for $250,000 and selling it in 2018 for $475,000. Buying a lifestyle block in the Tararua in 2015 for $270,000 and selling it in 2020 for $425,000.
What is your worst financial mistake? Buying a brand new car (for cash) after the huge win from the Hawkes Bay house. I absolutely love it though and every time I get in it I smile. It is also super fuel efficient and I do a lot of kms so I don't think it's all bad buying a new car, which is against popular opinion! So that's not really a mistake in my eyes hey?
What advice do you have for others? Farm ownership without parents input is possible. Everyone will tell you it's not, but you just have to get the right professional team around you and be open to different opportunities, as farm ownership can look different now than it used to.
What is the point of having a net worth above $1,000,000. What does it mean to you? It brings us closer to our goal of buying a bigger farm that we get to spend less time driving out the gate every day. It allows us to create opportunities for our children that we never had.
Finish these sentences:
If you want to build wealth do this… Live frugally by enjoying the simple things in life. Constantly review your expenses, do your due diligence on deals - spending a bit of money up front can save you a lot down the track. Don't be afraid to work hard!
If you want to build wealth avoid doing this… Not being on the same page and not having a common goal to work towards.
If these questions don’t adequately tell your story, feel free to briefly elaborate here: Long time listener of the podcast! We really would love to help young people get into farm ownership somehow in the future (NOTED! If anyone reaches out to me I am happy to connect them with you. Plus, I will look to create an episode around farm ownership for you. Ruth)