What is your net worth? $1,624,011
At what age did you become a net worth millionaire? 41
What region of New Zealand do you live in? Waikato
How did you accumulate your net worth, what are you invested in? KiwiSaver (both my husband and I), a small investment fund, freehold home, and a section at the beach (with a mortgage on it), cash savings and an emergency fund, freehold car and boat.
What was your highest average household WEEKLY income after tax? $2,405.50
What is your career? Part-time Admin, my husband works full time.
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? $30,000 received in 2006 (it went onto the mortgage)
What's the approximate value of your house? $1,180,000
Are you debt free now? NO
If NO, how much debt do you have and what is it for? No consumer debt, just a mortgage on our beach section of $395,966
Are you in KiwiSaver? YES
Were you taught about money? NO
If YES, how were you taught? No, my parents lived week to week themselves, but I did learn that if I wanted anything I needed to get out and work for it. A great life lesson :-)
What is the most enjoyable thing you do with money? Work part-time :-) And our wee caravan at the beach is a treat and luxury that we love and cherish.
Do you use your money or your time to help others? YES
If YES, can you please elaborate. I sit on nonprofit boards and have charities that I give $$ support to.
What is your greatest financial win? Paying off my husband's $16,000 student loan in 11 months
What is your worst financial mistake? Probably using finance to buy a car about 20 years ago. Also double unemployment a few years ago was tough! Thank goodness for emergency funds!
What advice do you have for others? Save and pay cash for EVERYTHING. Don't fritter. Give every single dollar you earn a job. Track your spending, use sinking funds, have sanity money. Have a dream and make a plan to get there. Know exactly how much you earn. Go to Paye.net.nz and enter your salary/wages. Next, deduct the 'cost' of having your job (lunch, petrol, parking, fancy clothes, dry cleaning etc) knowing the actual $ amount you earn per hour will make you think twice when splurging.
What is the point of having a net worth above $1,000,000. What does it mean to you? Not much - it's largely due to NZ's out of control housing market sadly. But I'm grateful that working hard early in my career and paying down our home loan as fast as possible gave me the ability to buy our beach section and work part-time so I can spend time with the kids.
Finish these sentences:
If you want to build wealth do this… Make yourself as employable as possible and negotiate the best salary you can. Put every single dollar to work - using sinking funds and clearly marked bank accounts for this. If you have a goal, write it down and put it onto the fridge! Work out how much $$ you need to make it happen and find those funds - automate the payments into a set account. ALWAYS have an emergency fund. Track your net worth monthly (thanks Ruth for that tip!). Have a 'no spend' day the day after every payday (when you have a full fridge and gas in the tank). Buy a home as soon as you can, any way you can (but not rental property - ugh!) and buy the worst house on an average street in an up and coming neighbourhood - and polish it up. You make money when you buy. Refinance your mortgage every 3 years - shop around and be savvy.
If you're lucky enough to be off work with the kids, or work part-time while your partner works full-time, make it your 'job' to manage, save and invest your family's money.
If you want to build wealth avoid doing this… Sleepwalking through life and being ambivalent about your finances. Paying interest instead of earning it, leaving your mortgage at 30 years, staying in a default KiwiSaver fund. Declutter, get organised - organise your files, paperwork and bank accounts, track everything and make sure you're getting the best deal possible. It doesn't pay to be loyal to any companies these days, unfortunately. Know your numbers and be savvy. Don't set and forget utility payments either. Once every one or two years email or ring every supplier you have and ask if you're getting the best deal. 99% of the time you're not and most are only too happy to help.
If these questions don’t adequately tell your story, feel free to briefly elaborate here: Thank you so much Ruth - I'm so grateful for everything I've learned from you! I talk about you all the time at home - my husband thought you were a mum at school! Lol.
Whakamoemiti ahau ki a koe x
*Ngå mihi maioha, I’m so pleased to have been able to help! Gosh, those Mum’s at the school pickup know a thing or two! Hehe. Ruth