What is your net worth? $1,010,000
Are you filling this out as an individual or a couple? Individual
At what age(s) did you become a net-worth millionaire? 50
What region of New Zealand do you live in? Australia
How did you accumulate your net worth, what are you invested in?
Home: $800,000
Australian Super: $330,000
ETF: $8,000
Savings: $8,000
Most of my net worth is from the equity in my home and my superannuation has been rapidly growing in the last 12 months. I have a small amount in ETFs, and this will increase once my mortgage is paid off.
What was your highest average household WEEKLY income after tax? $2,200
What is your career? IT
Do you have children? YES
Do you have a tertiary qualification? YES
Did you inherit any of your money? NO
What's the approximate value of your house? $800,000
Are you debt free now? NO
If NO, how much debt do you have and what is it for? $140,000 approx. Mortgage on my home. Should be gone in less than 2 1/2 years.
Are you in KiwiSaver? YES (Australian superannuation)
Were you taught about money? YES
If YES, how were you taught? More so by watching my Mum rather than explicitly. She became a single mum with no income and 4 kids when she was 40 and had to go on the widow’s benefit, I don't know how she did it but she is very frugal.
What is the most enjoyable thing you do with money? Knowing that I will have a future for me and my family and putting a little bit aside today will pay dividends later on - literally.
Do you use your money or your time to help others? YES
If YES, can you please elaborate. I help others with their financial situation and tell them about my story and try and point them in the right direction. There is a lot of good, free information available. I enjoy talking about personal finance and my girlfriend is currently changing her financial situation and I am helping with that. I sometimes gift finance books to people I know who could benefit from it. Strangely, the people that don't need the books will read them and the people that do need the books won't read them!
What is your greatest financial win? I started my financial journey 6 years ago and the knowledge I have gained has been the biggest win. But aggressively attacking my mortgage in the last 6 years (I have paid $300k off the principal) has been life changing. When I started 6 years ago I think my net worth would have been around $50k, I've only been tracking it for the last 2 years.
What is your worst financial mistake? Probably apathy and just cruising when I should have been more aware and actively saving and investing. And getting divorced was very costly from a financial point of view along with everything that goes with it.
What advice do you have for others? I think financial literacy is very important and you can educate yourself to a large degree on this topic. Also, aggressively paying off any debt you have will do wonders for your outlook on life. And if someone takes the p*** out of you along the way for being a tightwad, then you know you are on the right track... If you want to improve your financial situation, there are some great resources out there to help you:
Scott Pape - The Barefoot Investor
Dave Ramsey The Millionaire Next Door
Aussie Firebug
Dave Gow - Strong Money Australia
And you of course Ruth, you are doing an incredible job, and I'd like to thank you for all your efforts.
(YOU ARE VERY WELCOME, AND CONGRATULATIONS ON COMING SUCH A LONG WAY IN SUCH A SHORT SPACE OF TIME. RUTH 😊)
What is the point of having a net worth above $1,000,000. What does it mean to you? For me, it means that I have a future. I am a little bit surprised that I have got to this point this quickly. It's been a combination of maximising my super account (KiwiSaver) and aggressively paying off my mortgage and being a general tightwad.
Finish these sentences:
If you want to build wealth do this… The formula is quite simple but difficult to implement and maintain for most of the population:
1. Earn as much as you can
2. Spend less than you earn
3. Invest the difference
If you can pay yourself a basic wage (probably equivalent to the NZ super rate) and if possible save the difference between your income and that you will be in a good position.
If you want to build wealth avoid doing this… Avoid whatever the Jones are doing. There seems to be an obsession with taking on debt for housing in New Zealand and Australia, I find this a bit alarming to be honest. I know some people appear to have done well out of it, especially in New Zealand, but it fills me with trepidation.
If these questions don’t adequately tell your story, feel free to briefly elaborate here: The numbers are a by-product really of my life, which is very simple and basic. I am a single dad with 50-50 custody of my two teenage children. I have a healthy income of $175,000 and have to pay $16,000 child support p.a. I also max out my super with my pre-tax income (approx. $30,000 per year) and what I am left with I put about 60% of my income on paying off my mortgage debt. I consider myself very fortunate to be in this position now.