Millionaire #179

What is your net worth? $1,600,000

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

At what age(s) did you become a net worth millionaire? 40

What region of New Zealand do you live in? Canterbury

How did you accumulate your net worth? What are you invested in? Initially through real estate. We had a couple of rental properties which we bought in our late twenties and sold 10 or so years later. Any profit made we put towards paying off our own mortgage. Once that was done, we added to our retirement accounts (not KiwiSaver). After we sold our (own) last home (which we had paid off), we bought a less expensive place we were able to put a decent amount of extra money into our retirement accounts. At the moment, we have KiwiSaver, Sharesies and a managed fund.

What was your highest average household WEEKLY income after tax? $1,800

What is your career? Healthcare

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? In 2019, we inherited $5,000

What's the approximate value of your house? $920,000

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 taught me to save and live on less than I made. My mum was a budgeting whiz, so plenty of good role modelling in my home. No one in my family invested though, so I learnt that lesson as an adult when we were drowning in mortgage debt! My husband had no money education. When we met, he was hiring a bed and a set of drawers! He didn't have debt but had been working for a number of years and had no savings; it was always earn/spend/earn/spend.

What is the most enjoyable thing you do with money? I love the idea that we are changing our family tree and creating intergenerational wealth. We like having a house we are proud of and maintaining it. Travel is where we spend our biggest chunks of cash... no regrets there.

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

If YES, can you please elaborate? Regularly give to two particular charities. Have several charities in our wills also. We volunteer weekly (as regulars at our community garden) as well as ad hoc support for various organisations that we are part of. When the kids require parental help with things, we are always there to help as there has always been a parent at home (we take turns hopping in and out of the workforce). I started a little YouTube channel and newsletter for those living on small amounts of money to show how we do it and still have holidays, investments etc.

What is your greatest financial win? Buying our first house early with a good chunk of cash as the deposit.

What is your worst financial mistake? Buying a (large) bare block of land that we did not have the funds to build/relocate on to immediately.

What advice do you have for others? Start as soon as you can. Don't take financial advice from the bank. They are not there to help you.

What is the point of having a net worth above $1,000,000? What does it mean to you? Security. Knowing we and our family have a safe, warm home that can't be taken away is priceless. Knowing we are on track for a comfortable and early retirement feels luxurious. Being able to take time out from the workforce on a regular basis because we have a financial cushion means we can enjoy our time and freedom now rather than having to wait until we are elderly, and that feels fun.

Finish these sentences:

If you want to build wealth, do this… Learn to wait for your rewards.

If you want to build wealth, avoid doing this… Earn/save/spend. You must earn/save/INVEST/spend

If these questions don’t adequately tell your story, feel free to briefly elaborate here: Just to point out, it wasn't as easy as it sounds. In 2010/11, we were drowning in mortgage debt, and it was at this time that we decided we needed to get rid of the mortgage as having tonnes of houses and tonnes of debt was not working for us. We were very focused for a good five years as we worked to get rid of the mortgage and lived incredibly simply to achieve this. We have been mortgage free for the past six years and have had many long-term holidays. Collectively we have never worked more than 40 hours a week since this time. We continue to live simply (by choice) and are still able to save around 40-50% of our income.

Millionaire #180

Millionaire #178