What is your net worth? 1,250,000
At what age did you become a net worth millionaire? 60
What region of New Zealand do you live in? Bay of Plenty
How did you accumulate your net worth, what are you invested in? Fortunate to join up a Government subsidised pension fund at age 34. Rental properties (since sold), paid off my own mortgage by 59. Strict control of credit cards, and used revolving credit mortgage. Have never paid interest on ANY credit card!
What was your highest average household WEEKLY income after tax? 1800
What is your career? Nursing
Do you have children? YES
Do you have a tertiary qualification? NO
Did you inherit any of your money? YES
If YES, how much did you inherit? $32,000 in 1999. Renovated the backyard...$12,000. Put rest onto mortgage.
What's the approximate value of your house? $520,000
Are you debt free now? YES
Are you in KiwiSaver? YES
Were you taught about money? YES
If YES, how were you taught?: Self taught... READ...READ...READ! The most important book "The Richest Man in Babylon"
What is the most enjoyable thing you do with money? Travel and the comfort of knowing I have enough.
Do you use your money or your time to help others? YES
If YES, can you please elaborate. Always support buskers! Not with coins, but $20 notes!
What is your greatest financial win? Last minute decision to join a Government subsidised pension scheme, wondering if I could afford the $16 week contribution. Was raising two kids on my own, seriously close to not joining, but signed up 4 days before the scheme closed. Haven't missed that money at all.
I liken the scheme to the KiwiSaver scheme for this younger generation.
What is your worst financial mistake? Selling rental property privately. I underestimated their values and sold based on emotional value, as I was tired of being a landlord! I should have paid for valuations and used professionals. Not investing in my teeth! Skipped dental appointments and preventive dental care due to more pressing financial household and children responsibilities. Have just spent $10,000 and another $2,000 to go this year to repair neglected teeth! Not joining KiwiSaver immediately. Delayed (i.e. procrastinated) for about 5 years, missed out on free Government money and compounding magic.
What advice do you have for others Always, always have something left over to save at the end of each week, even if it's the cost of a cup of coffee. You will have made a positive gain for that week. Learn about and believe in compounding. I never quite understood it, but am reaping the benefits now in my old age.
What is the point of having a net worth above $1,000,000. What does it mean to you? Relaxed about my spending now, wonderful feeling of security going into retirement with savings.
Finish these sentences:
If you want to build wealth do this… Join KiwiSaver. NEVER pay interest on a credit card, always pay it off every month. If you can't do that then have a very low limit and only use it as a back-up. Pay off credit card debt ASAP and see the comment above.
If you want to build wealth avoid doing this… Wasting money on frivolous things: All those cups of coffee, bought lunches, expensive shoes, magazines.