Millionaire #178

What is your net worth? $1,008,824.83. Why yes, I do track my net worth ;-)

Are you filling this out as an individual or a couple? Individual

At what age(s) did you become a net worth millionaire? 46

What region of New Zealand do you live in? Canterbury

How did you accumulate your net worth? What are you invested in? I earned money, saved/invested a portion of each paycheque and waited patiently. Okay, sometimes I waited impatiently :)
Home - $430,000

Smartshares NZ50 and US500 - Approx $341,000 combined

Simplicity KiwiSaver - $99,000

Simplicity Growth Fund outside of KiwiSaver - $96,000

Cash (current account, emergency account, a few term deposits - Totalling just over $40,000

What was your highest average household WEEKLY income after tax? $1,750

What is your career? Manager in the public service

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? $10,000. Not a life-changing amount, but I used it to make an extra mortgage payment, taking years off it.

What's the approximate value of your house? $430,000

Are you debt free now? YES

Are you in KiwiSaver? YES

Were you taught about money? YES

If YES, how were you taught?: My parents led by example - they've always lived well within their means, prioritised spending on things which really matter to them (and were thrifty for things which didn't matter to them) and encouraged saving from an early age.

What is the most enjoyable thing you do with money? Travel. Donating to charity. And, at some point in the next 5-10 years, reducing my work hours (or retiring early) to buy time and autonomy.

Do you use your money or your time to help others? YES

If YES, can you please elaborate? Just the usual ways - financial donations to charity and local groups; volunteering locally (e.g. Parkrun, beach clean-ups etc)

What is your greatest financial win? Paying off my mortgage felt pretty epic. Stopping such a huge fortnightly payment and switching to instead investing that same amount was a financial and emotional game-changer. Reaching a point where I had investments worth 25 times my basic annual living expenses (at 45) was pretty amazing too.

What is your worst financial mistake? I spent my twenties travelling, funding it through low-paid casual jobs. I do look slightly enviously at some of my colleagues who join our organisation straight from university, building their careers and their incomes during their twenties. But then I think about sunrise at Angkor Wat or learning to SCUBA dive at the Great Barrier Reef or flying in a helicopter under the Golden Gate Bridge or the endless chats with people from all around the world. I don't regret my choices for a second.

What advice do you have for others? Think hard about 'needs' versus 'wants'. Think about what's important to YOU. Every single person reading this will have a different set of values, and that means every single person reading this will define 'needs' and 'wants' in a different way. Everyone will have a different view on how much they're willing to spend on each and what they're prepared to sacrifice to meet their own financial goals. And live well during this wealth-accumulation phase of your life too. Yes, money pays the bills and provides security, but other things matter too.

What is the point of having a net worth above $1,000,000? What does it mean to you? Peace of mind. Having options. Being able to take carefully-considered risks knowing I have a financial safety net. For me, it's less about a $1 million net worth (although, holy crap, I feel incredibly fortunate to be in this position) and more about having a paid-off house and more than 25 times my (admittedly very low) annual living expenses invested.

Finish these sentences:

If you want to build wealth, do this… Spend less than you earn and invest (not save) the surplus. Live well. Spend money on things which matter to YOU. And think beyond financial wealth too. I can't put a price on my health or my wonderful family and friends.

If you want to build wealth, avoid doing this… Trying to keep up with the Jones'.

Millionaire #179

Millionaire #177