What is your net worth? $2,300,000
Are you filling this out as an individual or a couple? Couple
At what age(s) did you become a net worth millionaire? 45
What region of New Zealand do you live in? Lower North Island
How did you accumulate your net worth, what are you invested in? Saved enough early on in our careers, so that when we bought our house (in our mid-late 30s) we only had a very small mortgage that we paid off within two years. The increase in house prices since then (inflation adjusted) has helped increase our net worth, but we generally don't consider the house as a cash generator since we have to live somewhere! However, steady savings (at least 40% of our income per year) has now meant we have reached our FIRE number, just in time as my job is being disestablished. We are invested in a mix of cash/term deposits and managed funds (balanced growth funds).
What was your highest average household WEEKLY income after tax? $3,000
What is your career? Research scientist; but my partner has not worked for over 20 years so we have been a single income household.
Do you have children? NO
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? YES
Are you in KiwiSaver? YES
Were you taught about money? YES
If YES, how were you taught? We were not taught much about investing, but were taught to save money for a rainy day and not spend above our means by our (respective) parents.
What is the most enjoyable thing you do with money? We are not big spenders but the money has meant I am able to reduce my work hours. I just got made redundant and rather than find another 9-5 job, I'm now able to set up a part-time consultancy without worrying if it doesn't bring in a lot of income. We enjoy pottering around, conservation work and camping/tramping. We haven't travelled overseas much for the last eight years as we're trying to cut back our carbon footprints.
Do you use your money or your time to help others? YES
If YES, can you please elaborate. Volunteer conservation work
What is your greatest financial win? Accumulating wealth while enjoying a good life and eating good home-cooked food!
What is your worst financial mistake? We probably should have invested in more aggressive growth funds when we were younger, and maybe index funds.
What advice do you have for others? Don't spend beyond your means, pay yourself (your savings account) first and you won't miss the money. Live your own lives without trying to impress people with your wealth.
What is the point of having a net worth above $1,000,000. What does it mean to you? I don't think a net worth of 1,000,000 is enough to give you true financial freedom unless you are retired and getting a pension, but it's a good safety buffer if something goes wrong. A lot of NZ houses are worth over $1,000,000 these days so I think true financial independence requires > 2,000,000. Having paid off the mortgage is the first step to freedom though.
Finish these sentences:
If you want to build wealth do this… Pay down debts as quickly as possible. Save as much as you can before major purchases to avoid a long-term debt e.g. mortgage
If you want to build wealth avoid doing this… Don't waste money on stuff that doesn't matter. Don't buy expensive brands, clothes, cars.