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.
Overview
Name: Danny
Age: 43
Where do you live? Sydney, NSW.
Please tell us a bit about yourself.
I live in Sydney, have a wife and two children.
What's your current net worth?
$6,270,021.87
How does it break down?
- Shares: 247,092.82.
- Home: $5,000,000.
- Real estate: $2,200,000.
- Superannuation: $152,992.77.
Do you have any debts?
- Car loan: $140,000.
- Mortgage: $1,804,260.95.
How did you build your net worth?
Trust fund, previous business, current employment.
Earn
Tell us a bit about your career.
I work as a Software Engineer for a major social media company. I have been in my current career for 20 years.
Do you have any income sources outside your job? How much do you earn from each and how did you develop them?
I receive dividends from my investment portfolio. I receive about $6,000 per month. I also receive income from leasing my three investment properties. I receive about $6,000 per month from this as well.
What’s been important for you to learn about money?
To invest in shares and superannuation. I don't underestimate superannuation - I treat it as my safety net.
Save
What's your savings rate? How has it changed over time?
I can't save any money from my income - everything goes to paying off my mortgage. I am supported solely from my rental income and dividend income.
Do you have a budget?
I give my wife $4,500 per month from my salary for house expenses: groceries, kids etc.
How much do you spend per year?
$114,000
Do you make purchase decisions carefully, or are you loose with your money?
I am quite loose with my money.
How is your work-life balance?
Not very good. I work strictly from 9am to 6pm in the office every day of the week and sometimes after hours too because my company's services are used by users world-wide. I can't work from home.
What's your favourite thing to spend money on?
Cars.
Invest
How do you invest?
I have a set number of ETFs and companies that I invest in. I blindly allocate the same amount each month.
What’s been your best investment?
High-dividend yield ETFs and US index ETFs.
What's been your worst investment?
Penny stocks that I thought were going to blow up but didn't; using leveraged products.
What’s been your overall return?
At the moment I am averaging 30-35% p.a.
How are you building wealth?
Property and shares.
What are your main roadblocks to building wealth? How are you addressing them?
My tendency to buy expensive things.
Do you have a target net worth you want?
$50 million.
Behaviour
When did you make your first significant behavioural shift towards wealth building?
Mid-30s.
If you could start again, what would you do differently?
Invest more in my super; don't use leveraged shares products; invest in crypto earlier.
What are some mistakes you’ve made along the way?
Using leveraged products without proper risk management.
Do you have any worries about retirement? If so, how are you planning to address them?
Not really unless all my investment decisions blow up in my face.
How are you learning about building wealth?
Family.
Do you give to charity? If so, what percentage of your time/money do you give?
No.
We want to hear your Real Money Talk
At Spaceship we’re big believers in sharing our money stories. We want to hear yours, too. In our ongoing Real Money Talk series, members of our community share what they’ve learned about managing money. We’d love you to take part. Here’s a link to our Real Money Talk survey where you can share your story.
