What is your net worth? $3,000,000
Are you filling this out as an individual or a couple? Couple
At what age(s) did you become a net worth millionaire? We became NWM in 2015
What region of New Zealand do you live in? Canterbury
How did you accumulate your net worth, what are you invested in? Belonged to a staff super fund from first day of work (for a major bank), and always contributed 6% or more of salary (+3% from employer) - never spending those funds on anything else (mortgage etc). Kept household expenses, spending money and savings in separate buckets. Always focused on long-term savings - managed funds initially, and latterly a diversified portfolio + KiwiSaver. Briefly invested in a residential investment property - at a time when the market tanked (bought high and had to sell low) - a poor outcome and a nuisance being a landlord!
What was your highest average household weekly income after tax? Currently approx $2,100 p/w.
What is your career? Started as a Banker - Financial Adviser for the past 20+ years.
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? Approx $200,000 (from both sets of parents)
What's the approximate value of your house? $1,200,000
Are you debt free now? YES
Are you in KiwiSaver? YES
Were you taught about money? YES
If YES, how were you taught? Grew up in the 60s/70s with a school Post Office savings account. Lived in a poor suburb and learned early the value of budgeting and living frugally (out of necessity). If I wanted my own things as a teenager, I had to earn and pay for them myself - babysitting, mushroom picking etc.
What is the most enjoyable thing you do with money? I like to be generous to friends and charities and treat myself to occasional clothes/shoes. Just not having to worry about having enough is enjoyable!
Do you use your money or your time to help others? YES
If YES, can you please elaborate. Friends who are not so fortunate - we give firewood to (we live on a small lifestyle block with trees). I volunteer at Riding for Disabled (pre-Covid - haven't returned to it yet). I sponsor a child at World Vision (for the past 25+ years). Give to several charities.
What is your greatest financial win? Won $1,200 in Lotto once!
What is your worst financial mistake? Believing a rental property would make us rich. Market timing was unfortunate, but the work involved alongside full-time jobs managing tenants was a strain, and the property downturn in the late 90's early 2000's was stressful.
What advice do you have for others? Learn the value of frugality. Be happy with "enough" (check out the quote from Kurt Vonnegut to Joseph Heller). We still have the furniture from our first house (and it was second hand then!) - you don't have to live like "House and Garden" - make a home for yourselves that you don't have to fill with the latest stuff, and teach your kids the same values. Things don't make you happy. Learn to cook simple, nutritious food, learn to sew, garden, read books - look for activities that are free. Everyone's circumstances are unique - talk to others and seek professional advice.
What is the point of having a net worth above $1,000,000. What does it mean to you? My plan was always to be able to retire with enough to live the life we were comfortable with (and not the struggle my mother had). I have exceeded that - and with no children, we plan on leaving what we won't spend to charity.
Finish these sentences:
If you want to build wealth do this… Be conscious of what you spend and where. Keep to a budget, and set specific savings goals. Think about how you spend - the impact on your goals, the planet. And mostly - seek advice!
If you want to build wealth avoid doing this… Not prioritising your spending/savings. Focus on getting a solid financial base before large discretionary purchases (e.g. travel, new vehicles).
If these questions don’t adequately tell your story, feel free to briefly elaborate here: My generation tends to be vilified for having it so "lucky". But my life has been planned around choices. I didn't travel until was 30 - I've travelled a bit since then - but my life doesn't feel incomplete because I haven't seen pyramids in the flesh. We saved for a house first and foremost - requiring a 25% deposit and 15% + interest rates. We bought quality goods - second-hand mostly and were happy to retain them. The main point I want to make is so much of where we end up is tied to the choices we make and learning to be content with enough.