What is your net worth? $1,000,000 plus
Are you filling this out as an individual or a couple? Couple
At what age(s) did you become a net worth millionaire? 43 and 39
What region of New Zealand do you live in? Nelson Tasman
How did you accumulate your net worth, what are you invested in? Property $1,000,000
KiwiSaver $100,000
Savings $5,000
Shares $2,000
What is your career? Teacher and Sales
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? We were very fortunate to have two separate inheritances, both in the mid-five figures. We used the majority of this to pay off chunks of our mortgage.
What's the approximate value of your house? Over a million dollars now.
Are you debt-free now? NO
If NO, how much debt do you have and what is it for? We have a very small mortgage left but that will be cleared 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? Finding ways to make our lifestyle at home more enjoyable. For example, double glazing or small renovations. We are quite frugal and don’t spend a lot of money on luxuries. We do enjoy the occasional dinner out or movies but otherwise, we are definitely savers rather than spenders.
Do you use your money or your time to help others? YES
If YES, can you please elaborate? We give money and time to our child’s school as we believe that investing in education is important. Over the years we have chosen different charities to support and we focus on one or two at a time. We have a budget for giving and every year we donate this towards worthy causes.
What is your greatest financial win? Being almost mortgage free and in what we consider to be our dream home is definitely our greatest financial win. Having enough money to be able to live comfortably, treat ourselves occasionally and help others too.
What is your worst financial mistake? Not taking the time to fully read and understand changes to an insurance policy. We had read and understood the original document but were careless when the insurance company made some changes and skim-read the documents outlining the changes. This resulted in having to pay a rather large excess when claiming on the policy which was a nasty surprise but completely our own fault.
What advice do you have for others? Spend less than you earn so you always have money left over to save/invest. Think carefully about how you structure your mortgage if you have one, small changes to repayment amounts/interest rates/term of the loan can make a BIG difference to getting it paid off faster. Always have savings for emergencies. Know what your insurances cover so you don’t get a surprise when you go to claim. Join KiwiSaver, it is amazing how quickly your balance grows with regular contributions.
What is the point of having a net worth above $1,000,000? What does it mean to you? Security, comfortable and enjoyable lifestyle, ability to help others.
Finish these sentences:
If you want to build wealth do this… Spend wisely and with consideration, save regularly, have financial goals to work towards. PAY OFF DEBT AS QUICKLY AS POSSIBLE.
If you want to build wealth avoid doing this… Mindless spending, minimal saving, no financial planning for the future.