This post is based on an interview we conducted with Mira in July 2022.
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: Mira
Age: 26
Where do you live? Sydney
Please tell us a bit about yourself.
I’m a 26-year-old Marketing Manager who lives in Sydney and is super passionate about all things finance and creating a financially independent life for myself.
What's your current net worth?
$518,640.
How does it break down?
- Shares - $61,659
- Cryptocurrency - $15,356
- Real estate - $950,000 (Investment property)
- Superannuation - $57,076
- Car - $25,350
- Cash - $11,234
Do you have any debts?
- HECS = $9,800
- Mortgage = $592,235
How did you build your net worth?
By spending less than I earn and investing the rest.
Earn
Tell us a bit about your career.
I worked five casual jobs whilst studying full-time as buying a property was always a big money goal from a young age. I got my first full-time job as a marketing co-ordinator earning $55,000 inclusive of super, and from there I’ve managed to increase my income quite quickly.
Do you have any income sources outside your job? How much do you earn from each and how did you develop them?
Yes. I have my full-time job, market research, dividends, and rental income.
What’s been important for you to learn about money?
Finding unique ways to increase my income if I have lifestyle or financial goals that I want to achieve. There are so many market research opportunities out there that only require me to give my opinion so the barrier to entry is very low.
Save
What's your savings rate? How has it changed over time?
Before I had a mortgage, I tried to save 60% of my income while I was living at home. When I moved out of home five years ago my expenses increased dramatically so realistically I wasn’t able to save as much as I did when I was living at home.
Do you have a budget?
Yes - I have a sexy excel spreadsheet that gives me the added peace of mind that I can look after the Mira of today, as well as the Mira of tomorrow.
How much do you spend per year?
Close to $50,000.
Do you make purchase decisions carefully, or are you loose with your money?
Yes, I do. I always try to spend mindfully and in line with my values. I’ve quickly learnt over the years that buying material things doesn’t make me happier, and a shared meal with friends, travel and new experiences is where I prefer to spend my money.
How is your work-life balance?
Really good so far.
What's your favourite thing to spend money on?
I love spending money on food I can’t make at home. Going out for a meal with friends is my favourite way to splurge.
Invest
How do you invest?
Investing in myself. I think learning about finance, the power of compound interest, investing, and making your money work better for you is life changing stuff, and stuff I wish was taught in schools.
What’s been your overall return?
I’m currently in a deficit due to the current state of the market but I’m not worried because I’m in for the long haul.
How are you building wealth?
Investing 80% in ETFs, 15% in individual stocks and 5% in crypto. I also plan to buy a second IP (investment property) in the next 1-2 years to create another passive income stream.
What are your main roadblocks to building wealth? How are you addressing them?
My income. I want to increase my income so I can achieve financial independence sooner.
Do you have a target net worth you want?
$1 million is my target.
Behaviour
When did you make your first significant behavioural shift towards wealth building?
When I read The Barefoot Investor in 2016. I was always good with saving money but I got to a point where I felt my money was sitting dormant in a bank account and I knew I could be putting my money to better use.
If you could start again, what would you do differently?
If I knew then what I did now, I’d tell my younger self to invest.
What mistakes have you made along the way that you think others could learn from?
Don’t ever take investment advice from anyone. Always do your own research and have conviction in your investment decisions.
Do you have any worries about retirement? If so, how are you planning to address them?
No. I know I’ll be ok because I’ve developed good money habits.
How are you learning about building wealth?
I learn from books, ebooks, podcasts, and by having very open money conversations with my circle of friends and family to help keep me accountable.
Do you give to charity? If so, what percentage of your time/money do you give?
Yes I do but I know I could be doing more. I give monetary donations to causes I’m passionate about, and I also try and give blood regularly.
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.
