What is your net worth? $1,700,000
At what age did you become a net worth millionaire? Late 30’s
What region of New Zealand do you live in? Waikato
How did you accumulate your net worth, what are you invested in? Mainly property. I started when I was in my early 20's by buying a bach with some mates for next to nothing. I ended up buying them out about 10 years ago. I have a mortgage free home, plus three rentals now plus I still kept the bach. KiwiSaver balance is growing quite nicely and have started up a Simplicity Growth investment fund to invest a little bit monthly going forward. I’m going to diversify away from property over the next 5-10 years.
What was your highest average household WEEKLY income after tax? $1,750
What is your career? Property
Do you have children? NO
Do you have a tertiary qualification? YES
Did you inherit any of your money? YES
If YES, how much did you inherit? $150,000
What's the approximate value of your house? $775,000
Are you debt free now? NO
If NO, how much debt do you have and what is it for? $1,280,000 - yikes! It’s investment property debt so the government changes on top of increasing interest rates are going to sting in the next couple of years!
Are you in KiwiSaver? YES
Were you taught about money? NO
What is the most enjoyable thing you do with money? Save for either fishing trips or for travel with my partner.
Do you use your money or your time to help others? YES
If YES, can you please elaborate. Donate to charities - Guide dogs, Red Cross, Greenpeace, Legasea. Plus I donate to any Givealittle funds where I see people in need!
What is your greatest financial win? Purchasing a full size section in Hamilton and then realising later that I could add a minor dwelling to the site without having to demolish part of the existing house.
What is your worst financial mistake? Buying a beach section in the Coromandel and losing 40% in value over the next five years and not earning any income on it during that period.
What advice do you have for others? If you can (and I appreciate how hard it is now), get into your own property. Get flatmates in to help with the mortgage and general expenses as this is a huge help. Pay extra on your mortgage and don't get caught up in the hype of having to have the flashiest cars and toys i.e. keeping up with The Joneses. Invest into your KiwiSaver (Growth Fund if starting out - I missed out on a lot of money by being in a default scheme for about 8 years). And if you have any unexpected windfalls, plug it into the mortgage or a managed fund.
What is the point of having a net worth above $1,000,000. What does it mean to you? It means that in the next five or so years my partner and I should (all going according to plan) be able to get out of the daily grind and choose a more simplistic life without the need of the 40 hour work week!
Finish these sentences:
If you want to build wealth do this… Start saving early and get into good habits. Don't live beyond your means and don't give a shit if you don't have the nicest clothes and toys. Get into your own home if able and smash away the debt. Keep paying into KiwiSaver and avoid consumer debt!
If you want to build wealth avoid doing this… Buying flash toys. Taking out a lot of consumer debt. Ticking up holidays, cars, toys (again) on the mortgage!