What is your net worth? $2,300,000 (combined)
At what age did you become a net worth millionaire? 42
How did you accumulate your net worth, what are you invested in? We both enjoy above average salaries and, with no kids, a high savings rate. The 'gap' has been invested in shares (mainly ETF's) and paying off our mortgage. And we have been fortunate to enjoy the great run of the Auckland house market over most of the last 10 years.
What was your highest average household WEEKLY income after tax? $4,100
What is your career? Accountant and Software Tester
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? Main house $950,000, Bach $600,000
Are you debt free now? YES
Are you in KiwiSaver? YES
Were you taught about money? YES
If YES, how were you taught? It wasn’t really overt teaching. More, as I look back, we were raised and schooled on 'Mustachian' principles. Despite being from a high earning family, we didn’t take overseas holidays, we ran sensible family cars (and were never given cars) and we were encouraged not to run up debt (worked our way through college etc).
What is the most enjoyable thing you do with money? We have a weekend place about 80 minutes north of Auckland near the beach. It’s our little bolt-hole and escape from the city. We are not book-a-baching it, so probably not a 'smart' use of funds, but it provides massive quality of life to us.
Do you use your money or your time to help others? YES
What is your greatest financial win? Probably, in an indirect way, not having children! Our decision was based on a whole range of other factors but it has had an unintended financial benefit.
What is your worst financial mistake? I purchased and ran a movie rental store in the mid 2000's in the US, as a way to maintain immigration status there. It was a fantastic learning and business experience, and served the immigration purpose for a while. But a financial mistake - I effectively didn’t draw a salary for three years!
What advice do you have for others? Knowing what you’re spending, managing your savings rate upwards, and investing the 'gap' - they sound like cliches, but they are so, so true. Also, know WHY you’re saving. A number is just a number without a goal, or a purpose when you get there.....
What is the point of having a net worth above $1,000,000. What does it mean to you? Financial flexibility. We both enjoy our work, most of the time, but to have options in life (while still young and healthy enough) is invaluable. Those options might be travel, moving to our beach place permanently, or going down to a couple of days a week paid work at an early age.
Finish these sentences:
If you want to build wealth do this… Start early. I opened my first retirement account at 24, but wish I’d started even earlier.
If you want to build wealth avoid doing this… Have kids?! Buy a movie rental store?! Seriously... avoid 'lifestyle creep' - as your income increases avoid the temptation to move to a bigger house and fill it with crap.