What is your net worth? $1,450,000
At what age did you become a net worth millionaire? We noticed around 42/46 years
How did you accumulate your net worth, what are you invested in? We spend a lot less than we earn, and we invest in property, we own four; three are rentals. We have money in superannuation type schemes (five between us), we have direct shares, share clubs (two), ETFs through Investnow and a healthy cash reserve.
What was your highest average household WEEKLY income after tax? We are both self employed so it’s possibly about now and we can earn around $8,000 per week if we are both working at peak
What is your career? We are both HR contractors.
Do you have children? NO
Do you have a tertiary qualification? YES
Did you inherit any of your money? NO
What's the approximate value of your house? The one we live in is $600,000, the others are $640,000 and $900,000
Are you debt free now? NO
Are you in KiwiSaver? YES
Were you taught about money? YES
If YES, how were you taught? “Kind of”! I used EnableMe and my husband is a frugal weirdo and always has been. I’ve learnt the hard way to sort out my frittering and start saving and investing.
What is the most enjoyable thing you do with money? It’s the opportunities it affords us, like buying a lifestyle property, paying cash for everything so there is no dead money on debt or interest. It also means if we want to take a month off we can.
Do you use your money or your time to help others? YES
What is your greatest financial win? Buying Mercury Energy shares, they are close to double the purchase price right now and you get dividends!
What is your worst financial mistake? Spending money on things I can’t afford and doing the Legacy Property investment course - $40k and we haven’t used it!
What advice do you have for others? Read a lot of blogs and DIY your finance. Definitely track your net worth on a monthly basis.
Rank your debt in order of interest rate then track paying it off monthly.
Both of these will help you assess your progress.
Track every cent you spend by category, this will help you know where your money is going.
Consider what you want more, your free time or another pair of boots/shoes/top/gadget/holiday... this is a powerful thought.
What is the point of having a net worth above $1,000,000. What does it mean to you? It means we are getting closer to financial independence and can see real progress against our goals. When you have a high income you pay a ton in tax. It’s nice to see us not frittering it away and being those people who are judged severely for not living within their “high” means.
Finish these sentences:
If you want to build wealth do this… Assess where you want your money to go on an annual basis. Does your spending match your aspirations?
If you want to build wealth avoid doing this… Shopping for stuff you don’t need.