What is your net worth? 4.5 million
At what age did you become a net worth millionaire? 43
How did you accumulate your net worth, what are you invested in? Entrepreneurial Businesses, Real estate and shares.
What was your highest average household weekly income after tax? $220,000 (annually)
What is your career? Now I have retired early at 55 because I sold my business. My career is company director.
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? $1.3 million
Are you debt free now? YES
Are you in KiwiSaver? YES
Were you taught about money? YES
If YES, how were you taught? Parents, finance fundamentals and accounting at University but my interest has always been in money and as a child I created lots of little businesses from different skills I had.
What is the most enjoyable thing you do with money? Give it or use it to support us while we volunteer. Also we support our children by investing in their education.
Do you use your money or your time to help others? YES
What is your greatest financial win? Selling our business for a net price that then allowed us to completely pay off our seven investment apartments and home property mortgages and have unencumbered rental income for retirement income.
What is your worst financial mistake? A failed business in my late 20’s that almost made me bankrupt but interestingly this was also in hindsight a great learning curve.
What advice do you have for others? Debt isn’t always evil, leverage can definitely work to your advantage if you understand how it works and the risks. I have always been aggressive in repayments paying significantly more than minimum at all times.
What is the point of having a net worth above $1,000,000. What does it mean to you? $1,000,000 meant that we had passed a major milestone on our way to FIRE. We worked backwards from the income we required so always knew we would need $4,000,000 plus.
Finish these sentences:
If you want to build wealth do this… Have a great relationship with your bank. Start early, invest regularly and use leverage. Buy and hold real estate and build value by owning /operating a business you can actually sell. Always start with an exit plan in mind. Be aggressive with repayments and take advantage of interest rates dropping to make greater principal repayments.
If you want to build wealth avoid doing this… Consumer debt and depreciating assets. Only borrow for value adding assets.