This post is based on an interview we conducted with Bianca in March 2021.
Real Money Talk is our series where we interview Australians from all walks of life about their personal finances. The views expressed are those of the interviewees, based on their experiences with money, and as such are not necessarily representative of Spaceship's views.
We have changed the name of the interviewee for their privacy.
Name: Bianca
Age: 26
Where do you live: Sydney
Please tell us a bit about yourself.
I grew up in Fremantle, WA, and moved to Sydney four years ago. I moved over here to study my Masters in Radiography at the University of Sydney. I had every intention of going back home after the course finished but I ended up basically falling in love with Sydney so I decided to stay here permanently.
What is your current net worth?
$87,000
How does it break down?
- 40% shares
- 33% savings
- 27% superannuation
Any debts? (including HELP from Uni)
No consumer debt, just a massive HECS debt, but I choose not to include that in my net worth.
How did you accumulate your net worth?
Working my a** off and saving/investing as much as possible!
Earn
Tell us a bit about your career:
I’m a radiographer at a big hospital in Sydney. I take X-rays, CT scans, mammograms, etc.
Do you have income sources outside of your job? If so, how much do you earn from each and how did you develop them?
I definitely try and side hustle as much as possible.
When I have some spare time, I deliver food for Menulog on my scooter. This pays about $10 - $15 per delivery and I can usually make two deliveries an hour on a busy night. I also participate in paid research through companies such as Askable, Octopus Group, Field Agent and Pureprofile.
I do make a little bit of extra money through my Instagram account. Most of the money I make comes from referring people to apps I use like Cashrewards and ShopBack. I’ve also done a few paid collaborations with companies that I love. The amount I make from this side hustle is super variable because I obviously never know if people are going to use my referral codes and there also isn’t a set price that I charge for paid collaborations.
What advice do you have for people who want to earn more money?
Don’t be afraid to look for jobs outside of the box. There are literally so many ways to earn more money and most of these are available at your fingertips. Do jobs on Airtasker, sell your old stuff on Facebook Marketplace, Gumtree or eBay, complete surveys online, become a pet sitter, etc. The opportunities to make more money are endless.
Save
What is your savings rate? And how has it changed over time?
I aim to save/invest roughly 50-60% of my income every payday. I’ve always been pretty good at saving money but I definitely save way more now than I did when I was a full-time uni student living off Centrelink and the occasional hospo shift.
Do you have a budget?
I set myself a spending budget of $500 per fortnight (not including bills and rent).
How much do you spend per year?
Over the last year, I spent $18,000 on rent alone (gotta love Sydney prices). My bills set me back roughly $1,500 last year (including gym, internet, phone, utilities, etc.) and I try and stick to a spending budget of $13,000 a year. So, I guess I spend between $30 and $35,000 a year.
Do you make purchase decisions carefully, or are you loose with your money?
Oh, I am super careful with my purchase decisions. Sometimes so much so that I have to remind myself that it’s actually okay for me to spend money on nice things for myself. If I want to treat myself to something expensive, I’ll think about it for at least a week before I commit to buying it.
How is your work-life balance?
This is actually something that I’m working really hard on this year. I’ve always loved working and making money, but I’m actively trying to remind myself now that I don’t have to be making money all the time. Seriously, what is the point of making money if I don’t use that money to enjoy my life?
What is your favourite thing to spend money on?
Experiences and travel. I spent most of my late teens and early-twenties travelling and living overseas, and I have no regrets about the money I spent doing that!
Invest
How do you invest?
I mainly buy ETFs through my ANZ online investment account. I currently hold IVV, ASIA and VAS so that I have exposure to a broad range of sectors.
I also have regular, automatic investments set up in Spaceship and I invest any spare money that I have into the app.
What has been your best investment?
IVV! The returns have been amazing over the last few years.
What has been your worst investment?
I bought shares in AGL because they have a high dividend yield. The value has dropped significantly since I bought them, but I have to remind myself that it’s OK because my investment strategy is to hold them for the long-term. It’s a good reminder to never invest money that you might need in the short-term.
What's been your overall return?
About 6%. (It’s a little bit lower than it has been previously because of the recent market correction).
How are you building wealth?
I’m currently saving for a house deposit because my goal is to buy an apartment in Sydney within the next couple of years. I also invest whatever I can whenever I can so that my money just keeps on growing.
What are your main roadblocks? And how are you addressing them?
Figuring out how much to save vs invest. I want to buy a house soon so I know that I should keep more money in a savings account so I can access it in the short-term, but I always get so damn tempted to invest it. I’m still trying to figure out the best strategy for my savings vs investments.
Do you have a target net worth you want?
$1 million is definitely the dream.
When did you make your first significant behavioural shift towards wealth building?
When I started working full-time, I realised that I was earning more money than I ever had but it wasn’t growing. Sure, I had it stashed away in a savings account but the interest rate was pretty pitiful. So, I started researching investment strategies and how to invest, and I haven’t looked back since.
If you could start again, what would you do differently?
Start investing earlier! I wish I had known that micro-investing apps like Spaceship existed back when I was in high-school and uni because they make investing so easy. Even though I didn’t have much money then, I definitely could have set up small investments of $20 a week and let that money grow.
What mistakes have you made along the way that others can learn from?
Listening to the wrong people for advice. Everyone has their own financial goals and their own financial strategies, but that doesn’t mean that what they do is right for you. Just because your mate from high school invests in crypto, doesn’t mean you have to. Just because your distant relative tells you to buy a house in a certain area, doesn’t mean you should. Listen to what everyone has to say, but always do your own research and listen to your gut when making your personal financial decisions.
Do you have any worries about retirement? If so, how are you planning to address them?
Not really. I think Aussies are really lucky because we have an amazing superannuation scheme. There is a superannuation gender gap though. Females often retire with significantly less super than men for various reasons like maternity leave etc. and so I make additional voluntary contributions into my super now to try and bridge that gap.
How are you learning about building wealth?
Social media is my go-to. There are so many awesome Instagram accounts that discuss building wealth openly and honestly like The Broke Generation, She’s On The Money, Tash Invests, etc.
Do you give to charity? If you do, what percent of time/money do you give?
Not regularly, but it’s definitely something I want to start doing more frequently. Thanks for the reminder!
