What is your net worth? $3,500,000
At what age did you become a net worth millionaire? 24
How did you accumulate your net worth, what are you invested in? Residential Property, Commercial Property & SME's (small-to-medium enterprise).
What was your highest average household WEEKLY income after tax? $4,300
What is your career? SME - Trades
Do you have children? NO
Do you have a tertiary qualification? NO
Did you inherit any of your money? NO
What's the approximate value of your house? $775,000
Are you debt free now? NO
If NO, how much debt do you have and what is it for? $800,000 spread across three mortgages on property and a small remaining debt on one business.
Are you in KiwiSaver? NO
Were you taught about money? NO
What is the most enjoyable thing you do with money? Being able to have nice things. Being able to travel business class and stay in nice places when we do travel. Watching my partner being able to afford to do the things she wants to do such as community and charitable work.
Do you use your money or your time to help others? YES
What is your greatest financial win? Spending my first home deposit on a small business and committing to that business improvement and growth. Everything I've learnt and everything I own was built off the back of that small three person business.
What is your worst financial mistake? Invested in a friends start up and it fell flat on its face due to him believing when you’re the boss, you only need to work one day a week and use that day to reprimand staff as the company wasn't performing well.
What advice do you have for others? Get cheap credit, spend it on productive asset and personally commit to that assets success. Try and enjoy what you do and don't worry about having the flashiest house or the best car etc. Spend what money you do spend on your family on memory forming experiences and take the proper R&R.
What is the point of having a net worth above $1,000,000. What does it mean to you? Not a lot really. We live similarly to how we would on a good wage, maybe the exception of the wife not having to work and how we travel. Net worth is just another KPI (key performance indicators).
Finish these sentences:
If you want to build wealth do this… Forget about what you have done to this point if its not great, make a plan and stick to it. Find cheap credit, purchase productive assets and make them work. Put your profits into non-productive assets such as property, which I think is a pretty good savings account. Keep some cash reserves in case things go south. Don't be frugal with your spending but don't be stupid. Make a plan and stick with it!
If you want to build wealth avoid doing this… Buying cars that are on tick that are equivalent to half (or more) your annual income. Partying and travel is great, but only if you can afford it. Don't worry about what your mates have or do, just do you.
If these questions don’t adequately tell your story, feel free to briefly elaborate here: Dropped out of high school and left home at 14. Late teens was a write off, beers, boobs and travel were my weakness. Woke up at 19, broke, in mass debt with no qualifications, asset or future. Made a plan to move back in with Dad and retire my burgeoning $70k debt by 21 and save a small deposit and buy my first house by 22.
I had a change of heart and intended on spending my home deposit on my first business at 22. I was turned down by six banks which isn't surprising. But I was improving the sales pitch, business plan and presentation, based on the comments of the last, each time. I was eventually able to successfully secure funding for the business after three months of trying.
Over the next eight years I bought a few more businesses and put profits into four rentals whilst living on a rented mezzanine floor paying $180 week rent to keep personal costs down. I only just bought my first home last year aged 30 and am now starting to enjoy my 10 years of hard work.
Everyone's story is different, all equally as interesting. I think mine could serve as a good example of how things can be turned around with conscious effort and a plan no matter how bad the first chapters are. Just do it your way and be happy knowing you did enough.