This post is based on an interview we conducted with Lily in August 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.
Overview
Name: Lily
Age: 17
Where do you live? Adelaide
Please tell us a bit about yourself.
I am a year 11 student, hoping to study medicine after school.
I am the highest ranking Army Cadet in the state, representing over 800 young people in the youth development organisation.
I got into investing when I was around 11 years old when my parents offered to put money aside for us in shares. My interest in investing has only grown since then.
What's your current net worth?
$10,200
How does it break down?
- $8,300 in Spaceship Voyager
- $1,200 in super
- $500 in short term savings (I consider Spaceship Voyager as long term)
- $200 in cash
Do you have any debts?
No debt.
How did you build your net worth?
I used to have a part-time job in fast food, however I had to quit due to various reasons (health and too many hours straight after school).
At the moment my parents generously give me $50 a week that allows me to continue investing whilst I train to be a swimming instructor.
When I finish my qualifications to become a swimming instructor I hope to invest up to $80 a week.
I am currently investing $35 into Spaceship Voyager each week.
Earn
Tell us a bit about your career.
I do not have a career as I am a full time student. However I would consider the youth development organisation I am in to be a career of sorts: I attend conferences, boards, planning and training workshops as well as instructing on week-long leadership courses in the school holidays.
Do you have any income sources outside your job? How much do you earn from each and how did you develop them?
I do not currently have any income sources.
What advice do you have for other people who want to earn more money?
I really struggled when I first quit work. I went from being self-funded to taking handouts from my parents. They assured me that in the long term, by focusing on my studies I am preparing myself for a career that will earn me a good income.
If you are a student, don’t be afraid to take a step back to focus on your studies.
Save
What's your savings rate? How has it changed over time?
Currently I save 60% of my income (which I know sounds like a lot).
After leaving my part time job to focus on study my parents generously give me $50 a week to maintain my investments ($35 a week). The $50 is very different to the $200 I was earning weekly from my part time job.
I have found that I am saving a lot more, and spending a lot less, something I hope to maintain when I get a new job.
Do you have a budget?
I use Up banking which allows me to put savings into categories. I have a strict budget for a range of different categories as well as a buffer.
How much do you spend per year?
Yikes. I used to spend a great deal more, however I’m tracking at around $70 a month so probably with extra expenses included around $1,500.
Do you make purchase decisions carefully, or are you loose with your money?
When I first started working I would splurge on just about everything, however this lifestyle is never maintainable.
I now think carefully about my purchases.
But... I am a sucker for sales.
I think what’s helped me the most is asking myself whether or not I’d be happy spending full price for the item, and then asking myself if I could afford two of the item and still be within my allowance without dipping into my buffer.
How is your work-life balance?
As a student, stressful. However I do find the time for things I love: piano, painting and camping :)
What's your favourite thing to spend money on?
Probably stationery. I’m one of those girls who has the calligraphy titles all over her notes.
Other than that, possibly food (although never from the school canteen, you won’t be catching me paying $3.50 for a dairy milk chocolate bar 😭😭).
Invest
How do you invest?
A weekly, set amount that’s automatic.
What's been your best investment?
Spaceship Universe Portfolio, I’ve been investing for nine months and made $1,600 return.
(Spaceship note: past performance isn’t a reliable indicator of future performance. As share markets go up and down, so too can the value of your investment.)
What's been your worst investment?
When I was 10 my parents put aside $1,000 in my name. It didn’t do much over that time so you can imagine my disappointment when I only made an additional $500 after 7 years 😖😖.
What's been your overall return?
$1,600
How are you building wealth?
Weekly investing, putting aside birthday money, and my personal favourite – ✨compound interest✨. Omg I love compound interest so much, it’s free money from free money! (I know that’s not exactly how it works but shhhhhh.)
What are your main roadblocks to building wealth? How are you addressing them?
Getting a new job that suits my school study requirements.
Do you have a target net worth you want?
In the near future:
I would love to have $20,000 in Spaceship Voyager by the time I’m 20.
Definitely a car, and around $5,000 in short term savings.
Behaviour
When did you make your first significant behavioural shift towards wealth building?
My parents have always brought me up to be very mindful of money.
From a young age they had me putting aside money for ‘expenses’ (if I lost my school hat, which was a regular, I would have to pay half the cost), ‘presents’, ‘donate’ and ‘spending’.
From the foundation my parents made I built my own saving habits.
If you could start again, what would you do differently? What advice would you give your younger self?
“Not being so frivolous when spending. Stop it. You do not need 37 crew neck jumpers.”
What mistakes have you made along the way that others can learn from?
Online shopping is fun but you probably cannot afford it 🥰.
Do you have any worries about retirement? If so, how are you planning to address them?
Not at the moment, I understand that putting away money for super is important as I’ve had conversations with my parents regarding the subject.
In the future I will aim to invest money into super and of course, continue investing in shares.
How are you learning about building wealth?
Mainly from family, my dad in particular.
I have read the Barefoot Investor, and follow saving pages on Instagram.
Do you give to charity? If so, what percentage of your time/money do you give?
I love buying the World Vision Christmas cards that donate money as the gift (on a few occasions I’ll organise with my class at school to chip in $5 to give our school teacher the gift of ‘training a teacher in a developing country’ and they always find that a beautiful gift.)
Even when I was young my little brother and I would use our ‘donate’ money (pocket money we earned but put aside throughout the year) in order to buy a gift for under the Christmas tree (for children in poverty).
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.
