What is your net worth? $2,400,000
Are you filling this out as an individual or a couple? Individual
At what age(s) did you become a net worth millionaire? 40
What region of New Zealand do you live in? Waikato
How did you accumulate your net worth, what are you invested in? UK property, then NZ property without selling UK house. Then KiwiSaver, separate investment accounts. Always big index tracking ETFs. A little bit of employer share scheme. A kickstart from parents but only after I proved I could be trusted.
What was your highest average household WEEKLY income after tax? $3,000
What is your career? Telecoms
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? $300,000
What's the approximate value of your house? $1,300,000
Are you debt free now? YES
Are you in KiwiSaver? YES
Were you taught about money? YES
If YES, how were you taught? Dad always told me it’s not how much you invest, it’s how long you invest for. Kinda a version of ‘time in the market, not timing the market’. He encouraged me to buy my first house and not sell it when I moved. Then I read the Motley Fool book on index funds, low fee investing (basically the Bogle approach), about 15 or more years ago. Stuck with that ever since.
What is the most enjoyable thing you do with money? Two things. I buy bicycles and woodworking tools and I take my daughter to lunch.
Do you use your money or your time to help others? YES
If YES, can you please elaborate. I can now spend my spare time and my workshop to help friends with projects.
What is your greatest financial win? I chose to take out a tracker mortgage in the UK before we entered the period of sustained low interest rates. I paid Bank of England base rate + 0.5% for the duration of my first mortgage. As interest rates dived so did my interest payments. I capitalised by overpaying and becoming mortgage free.
What is your worst financial mistake? I tried to jump on the Gamestop bandwagon. Lost $1000. Remembered why I don’t buy individual stocks. Oh and I got my girlfriend pregnant unexpectedly. That one turned out good though because I have a daughter I love.
What advice do you have for others? Budget, live beneath your means, Save, Invest. Low fee, broadly diversified ETFs.
What is the point of having a net worth above $1,000,000. What does it mean to you? I have choices. I'm not beholden to my employer. I feel in control. It mitigates my naturally anxious nature.
Finish these sentences:
If you want to build wealth do this… Save, invest, don’t try to keep up with the Joneses. See the good in people and realise you can learn from everyone, not just your rich mates. Especially not your rich mates.
If you want to build wealth avoid doing this… Gambling on individual stocks, buying depreciating assets, keeping up with the Joneses, getting carried away with any hobby or interest at the expense of your overall financial wellbeing. Oh, get an education and if you can do it without debt then do so.
If these questions don’t adequately tell your story, feel free to briefly elaborate here: Hey Ruth, I love your writing and see a kindred spirit. Happy to chat.