What is your net worth? $1,150,000
At what age did you become a net worth millionaire? 40
How did you accumulate your net worth, what are you invested in? We aren't particularly wealthy, but just sneak into your criteria. I've had great advice from you personally and with your weekly emails etc. I feel we have some good advice for others.
We have partly been lucky with property, but we also have worked hard, including running a small side businesses. We bought our first home in 2002 and kept upgrading to bigger homes. Most of the net worth came through capital gains in our own homes. We wished we had bought a rental (don't we all).
We have always had secondhand cheaper cars.
We have only borrowed for our house. Everything else has been bought with cash. Save for what you want. You will appreciate it that much more.
We split our income automatically.
We've always paid extra payments on our home loans.
We invest in shares. It used to be small amounts but now larger.
We have always paid off our credit card each month.
We both have KiwiSaver.
What was your highest average household weekly income after tax? $2,000
What is your career? Deputy Principal
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? $1,050,000
Are you debt free now? YES
Are you in KiwiSaver? YES
Were you taught about money? NO
If YES, how were you taught? I wish I was. I have taught my children about financial literacy. My children split their money also.
What is the most enjoyable thing you do with money? We automate our money. The most enjoyable thing is the fun account for going out on the weekend with the family. Also, the holiday account.
Personally I love seeing the investments in shares increase.
Do you use your money or your time to help others? YES
What is your greatest financial win? Our latest property. We did stretch to get it about 8 years ago, but luckily the market moved up quite a bit in the past few years. It has second dwelling potential and is sub-dividable.
What is your worst financial mistake? When we first got married we were going to buy two properties back in the early 2000s. We decided to do what we thought was the sensible thing and bought one and hammered the home loan. It would have been better to have bought 2 properties.
What advice do you have for others? Lots!
Follow The Happy Saver and The Barefoot Investor.
Automate your money. Decide on how you will split your money (home loan, savings, holidays and house upgrades, fun, investing etc).
Only borrow for a house. Don't overextend yourself when buying a house.
Buy a car with cash. Drive second-hand cars.
Bike or walk for exercise and to save on petrol.
If you need or want extra income getting a flatmate or international student are good options.
Invest in shares (even small weekly amounts). At least 10% is a good start.
Sign up for KiwiSaver.
Start a small business.
Always pay off your credit card, or even better don't have one. You can always use debit cards instead.
Don't buy rubbish! Think carefully about whether you really need it.
Also, don't be stingy enjoy your money and having family fun.
Don't buy a pool, spa or new cars (unless you really can afford them, or it brings you boundless joy).
Teach your kids financial literacy!
What is the point of having a net worth above $1,000,000. What does it mean to you? Security and freedom to do the things we want to do. We really want to have experiences with the kids, like a holiday to Europe.
Finish these sentences:
If you want to build wealth do this… Invest regularly.
If you want to build wealth avoid doing this… Buying new cars, credit cards, spas and buying STUFF you don't really need.
If these questions don’t adequately tell your story, feel free to briefly elaborate here: It isn't always about how much you earn, but what you do with it.
Keep up the great work Ruth!