What is your net worth? 1,500,000
At what age did you become a net worth millionaire? 43 as a single mum
How did you accumulate your net worth, what are you invested in?:
Accumulated - Divorce settlement, residential properties, investment property, my business, commercial properties, inheritance, savings.
Invested - residential and commercial property, purchased a business, shares, bank, KiwiSaver.
What was your highest average household WEEKLY income after tax? $1,000
What is your career? Teacher
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? $200,000 recently (long after I was already a millionaire)
What's the approximate value of your house? $650,000
Are you debt free now? YES
If NO, how much debt do you have and what is it for? Commercial property has $201,000 mortgage and I have $250,000 in bank awaiting fixed term to finish in June 2020.
Are you in KiwiSaver? YES
Were you taught about money? YES
If YES, how were you taught? Raised by a single Dad from age 11 and was actively involved in family budgeting. Studied accounting and economics. Read books. Listen to 50 financial podcast episodes a month. Talk about money.
What is the most enjoyable thing you do with money? Travel and help people especially my uni student kids.
Do you use your money or your time to help others? YES
If YES, can you please elaborate. Both
Reduced my hours at work (now part time) to give me time to volunteer and give business/career/financial advice for free. Lend friends money interest free to help them get out of debt or gift money in some cases. Support my two kids through university. Help clients who are struggling.
What is your greatest financial win? Investing my money in myself. Giving up a good job and debt free life and borrowing $700,000 to buy a business and commercial property as a single mum. Eight years later, I am only 8 months away from being commercial debt free (have the cash but mortgage is fixed till 2 July 2020 - it was a 5 year fixed term)
What is your worst financial mistake? Not buying particular commercial properties a few years ago! I came close but various reasons I didn’t! Regret that.
What advice do you have for others? Don’t put all your money in your home (and don’t upgrade when mortgage free). Start KiwiSaver early (I started at 40). From your first job set it at 10% and leave it there. Read/listen to experts. Spend less than you earn. Get debt free (that is huge!) and never borrow money. Save up instead (delayed gratification). Don’t have an expensive lifestyle (keeping up with Joneses) eg. designer clothes, flash cars, excessive entertaining. Use your money to make the world a better place. Money not stuff gives you security.
What is the point of having a net worth above $1,000,000. What does it mean to you? Freedom and security as a single woman. Being debt free and investing in an income stream means I don’t have to work full time (I’m semi retired at 48). I can look after my family and friends.
Finish these sentences:
If you want to build wealth do this… Reduce your lifestyle, get debt free and then invest excess money. Build another income stream.
If you want to build wealth avoid doing this… Investing in things which devalue like cars, boats, sporting gear, jewellery, furniture.
If these questions don’t adequately tell your story, feel free to briefly elaborate here: Married to high income husband ($200,000+). He spent money like water - excessive lifestyle with 7 cars and still had large mortgage (revolving credit) on fancy house. Divorced at 40 and purchased a cheaper house in nice area mortgage free (left behind cars etc and took cash instead). Now finally had control over my money - debt free and mortgage free at 40. Two years later borrowed $700,000 against my freehold $450,000 house and purchased business. Sold house and brought two cheaper houses. Three years later sold one for good profit. Eight years after purchasing business - paid off business and have money to pay off commercial property when fixed term expires. Last 6 months started investing in shares.