This post is based on an interview we conducted with Lily in April 2024.
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: Lily
Age: 19
Where do you live? Adelaide.
Please tell us a bit about yourself.
I previously did ‘Real Money Talk’ in 2021.
At the time I was 17, and wrote that my goals were to have ‘$20,000 in investments by age 20, a car and $5000 cash’.
Looking back at younger me’s responses, it’s interesting to see how my goals have changed and my perspectives have developed over time.
After school I took a gap year and worked full time as an educational support officer (SSO/ESO) in a middle school. I have since started studying a Bachelor of Inclusive and Specialised Education (secondary).
Now I prioritise both investing and travel and since leaving school I have travelled both solo and with friends to Thailand, India, Nepal, Norway, UK, Morocco and China
What's your current net worth?
$50,000
How does it break down?
- Shares: $30,000
- Superannuation: $7,500
- Cash: $2,500
- Car: $14,000
Do you have any debts?
- HELP debt: $3,600 (only 1 semester so far)
How did you build your net worth?
I've built my net worth by prioritising two key factors: increasing my income and maintaining disciplined saving habits.
I firmly believe that a job should either enhance my skills for future opportunities or provide satisfactory income and working conditions.
If a job doesn't meet these criteria, I seek other opportunities. As a young person, my loyalty lies with my own personal and professional growth.
Earn
Tell us a bit about your career.
Currently I am a full time uni student, however I also work 26 hours a week in three jobs.
- Educational Support Officer (ESO): Whilst the role can be very broad, I primarily support autistic students to access the Australian Curriculum at the same stage as their peers. (22.5 hours per week)
- Disability Support Worker: On the weekends I support clients with physical disabilities with personal care and domestic tasks. (2 hours per week)
- Private Tutor: I private tutor a year 10 student once a week. (2 hours per week)
Do you have any income sources outside your job? How much do you earn from each and how did you develop them?
No (aside from dividends I suppose).
What’s been important for you to learn about money?
To look for job opportunities that pay higher than minimum wage however do not require long term training. I highly recommend the support sector that pays hourly rates starting at $35 per hour (more for evenings and weekends).
Save
What's your savings rate? How has it changed over time?
Around 50%. It is important to acknowledge that this is only possible because I live with my parents.
Do you have a budget?
I earn $1,300 per fortnight, here is how I split it into different savers:
- Investments: $625
- Holidays: $430
- Car expenses: $120
- Spending/short term: $120
- Rainy Day: $0 (Rainy Day fund is my emergency fund that has $1,500 at all times. If I needed to use this money I would then build it back up over time).
How much do you spend per year?
- $10,000 on holidays
- $6,000 on expenses and spending
Do you make purchase decisions carefully, or are you loose with your money?
Carefully.
I have a credit card to build my credit score and earn Frequent Flyer points.
Whenever I spend money on the card, I move money from my spending account to a separate account called ‘credit card payments’.
At the end of the month I pay off my card in full.
This method allows me to never spend money I do not have whilst also earning interest throughout the month.
How is your work-life balance?
During the school/uni term, not the best. However as soon as I’m on school/uni holidays I’m exploring a new country!
What's your favourite thing to spend money on?
Travel! I love new experiences and learning about different cultures.
Invest
How do you invest?
Monthly, through Pearler (brokerage platform).
What's been your best investment?
(An ASX stock), I purchased some in November of 2023 and (at the time of writing) it’s tracking 56% returns.
What’s been your worst investment?
Funnily enough, Spaceship Universe. I invested when COVID started and watched my portfolio fall from highs of $8500 to $4000 in December 2022. I spent 2023 investing into the portfolio over time to dollar-cost average. As soon as it broke even I pulled everything out and invested directly into the ASX.
Unfortunately the timing of my Spaceship investments was not ideal. Whilst I no longer use the platform I still believe it is a good place to start, particularly when learning about investing and determining your risk tolerance.
What’s been your overall return?
10% (between Jan 2023 to present).
How are you building wealth?
Continuously investing.
What are your main roadblocks to building wealth? How are you addressing them?
I believe HECs debt in the coming years is going to become a burden. Additionally house prices are really discouraging. It feels as though it doesn’t really matter how hard I try, because at the end of the day home ownership is practically unattainable. I also worry about retirement. All data regarding how much superannuation a person needs is based upon owning a home outright.
Do you have a target net worth you want?
Between $85,000-$100,000 invested in shares by age 24. At 24 I will have finished university and be 6 months into my first ‘big girl job’ 😄
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.
