What is your net worth? $1,935,000 - yet see my disclaimers!
At what age did you become a net worth millionaire? 2010 - when I paid off my house.
How did you accumulate your net worth, what are you invested in?
Home - $1.7 million
Rental Property - $600,000
Share funds- $90,000
Total = $2,390,000
I have a loan of $455,000 on rental unit
Net Worth = $1,935,000
What was your highest average household WEEKLY income after tax? $2,500
What is your career? Health Professional
Do you have children? YES
Do you have a tertiary qualification? YES
Did you inherit any of your money? YES
If YES, how much did you inherit? $550,000 - yeap I had a head start, for a house. However if I didn't have this head start, I would of got a smaller house!
What's the approximate value of your house? $1.7 million
Are you debt free now? NO
If NO, how much debt do you have and what is it for? See above - $455,000 on rental.
Are you in KiwiSaver? YES
Were you taught about money? YES
If YES, how were you taught? Yes and no - not explicitly, but implicitly saw my dad work hard, minimum debt etc.
What is the most enjoyable thing you do with money?
Buying experiences with family/friends
Spending it on meeting friends so we can connect
Do you use your money or your time to help others? YES
If YES, can you please elaborate. Donations to Unicef and Red Cross etc.
What is your greatest financial win? I suppose the house, but I think it was more luck than skill, in terms of when we bought and how much it is worth now.
What is your worst financial mistake? Not saving earlier.
What advice do you have for others? Save as soon as you have a plan - earlier the better.
What is the point of having a net worth above $1,000,000. What does it mean to you? Choices.
Finish these sentences:
If you want to build wealth do this… Save more than you earn, invest in long term assets.
If you want to build wealth avoid doing this… Lifestyle creep and lifestyle debt.
That includes "bigger house" syndrome? new car/bach etc.
I have made some of these mistakes!
If these questions don’t adequately tell your story, feel free to briefly elaborate here:
DISCLAIMERS
My house has the largest value, yet unless I downsize, or get another mortgage I can not use this equity.
The rental property is only slightly positive cashflow.
I only have $90k (share fund) that is liquid (plus access to $150k revolving credit debt)
I am undiversified, in terms of all my money is tied up in property. If the property market crashes, then there goes my equity! Also, it is not liquid and I may have to sell to fund my retirement. Here's hoping that property prices are high then!
However I also have choices.