By Mr and Mrs MoneyPlant
Up until this point, it was just me, Mr MoneyPlant, living the dream (And from the outside, looking super poor haha)
Unknown to me at the time, Mrs MoneyPlant was also saving and investing. We were dating and weren’t aware of each other’s finances in detail, but I was starting to be quite aware of how money-smart she was, Now that we’re married I’ve collected all the data and this update is specially dedicated to the time between when I hit $200k as Mr MoneyPlant alone, to $300,000k as Mrs & Mrs MoneyPlant combined.
If you just read the $200,000 post then this update is going to seem quite ‘short’, and that’s because I wasn’t including Mrs MoneyPlant’s personal saving/investing journey in any of the previous write ups. From now on however, all figures will be combined, and since Mrs MoneyPlant already had around $60k, my wealth combined with hers, increasing our position when we merged the two figures together. So with that, ignore most of the ‘time’ and ‘income’ figures in this post as without the context of this, its a bit odd.
- $300,000 combined net wealth
- It took 92 months from when we both started at zero to reach $300,000
- Total combined gross income of $503,274 (Including interest and dividends)
- Outside of super, we held 34% in cash, 47% in shares and 19% in super
Let’s dive into the details, hope you enjoy ?
$200,000 | APRIL 2016
Carrying on from April 2016 when I hit $200,000, I had changed my living arrangements and moved in with some friends closer to the city as the commute to the far northern suburbs in Brisbane was getting pretty long, and the living situation with my ex-mate and ex-girlfriend was no longer working (That was a fun living arrangement….)
I moved in with two friends and split the $450 weekly rent 3-way. Going from $100 a week to $150 wasn’t too bad, and this time I had an ensuite, yew! I was 24, and had just started to date this incredible young women (Mrs MoneyPlant for those guessing along!) Now don’t worry, this won’t turn into a romance novel (But we did take long walks in New Farm park and had picnics…anyway, let’s get back on track).
I haven’t touched on Super much before and since this is a short time period now’s a good time… Oh.. super!
I didn’t really care too much about super, in fact I actively despised it. I thought I could do more with the extra 9.5%, and the fees that were getting taken out of my account were criminal! (And since my super holds shares, why was the growth so poor compared to investing in shares outside of super, where were all my dividends!?!! Daylight robbery!)
Anyway, investments held within Super are really tax effective but since the retire age is around a billion years old (well it’s 65, but close enough) I really don’t care for it all too much as I’ll be too old to enjoy life by the time I get it, but.. it’s part of my finances so I include it. Contributing to super depends on your own situation, and for those nearing 65 (sorry I said you were a billion years old) then contributing into Super can be the best tax effective investment you can make! For those planning on retiring way before the retirement age however, then you may need to weigh up the options and consider if you want to put extra into super or not. For us, we don’t contribute more to super then what we need to as I really want to build up our wealth outside super so we can access it when we need to and not be restricted to the governments retirement age. When we can finally access super, it’ll be a nice little bonus, but we don’t want to depend on it.
$300,000 | SEPTEMBER 2016
WITH OUR FORCES COMBINED...?
On September 2016, I had around $243,000, and Mrs MoneyPlant had $64,000, so as a future couple, this period is when we hit the $300,000 mark. It wouldn’t be until the next $400k post, that we fully combined our finances, so be sure to check out the next milestone on how we navigated joint accounts and investments.
This whole period between $200k – $300k lasted 6 months, but there were plenty of lessions being learnt!
My job was quite stable and Mrs MoneyPlant was studying her Masters. I was incredibly impressed by the face that she had over $60,000 in cash, and was studying her masters with NO student debt. She worked her butt off whenever she could and always paid upfront. Maybe that’s one of the reasons we got along so well! It’s a finance blog, but according tothis article from SMH, financial stress is one of the leading causes of relationship breakdown, so for all those singles out there (or those in a relationship already) don’t understimate how significant financial compatibility is.
We both love hunting for coupons, deals, and never paying full price on anything comes with a lot of joy, it’s kind of our ‘thing’. If one of us was a saver and the other a major spending, then I honestly don’t know how we would have managed that. Money is such an important part of life, so whoever you decide to choose in life, make a ‘Money Datenight’ where you both talk about
- Saving Money
- Spending Money
- Income and expenses
- Luxury funds and hobbies
- Equality in purchase decisions with respect to all the above
It’s just another compatibility test, but I personally think it’s a pretty major one, but what do I know, so lets dive into the data from since we started
Combined, we earnt $61,000 over this period. Usually income is a really good indicator for how much we increased our net wealth by, but this particular post it doesn’t matter too much. During this period however, I was working full-time in a stable position, and Mrs MoneyPlant was studying her Masters part-time and working part-time when she could. I’ll talk about how having dual income affected our wealth building a bit more in the $400k update.
RETURN ON INVESTMENTS
This was a short term frame, but even so we made about $5,200 in returns ($3,500 in Dividends and $1,700 in interest)
What is worth noting is that 58% of our wealth (outside super) and contributed 70% of our total investment returns. $5,200 for 6 month was getting high enough to warrant some further attention… It wasn’t just a few dollars a month year now so I was getting pretty excited by the future potential!
LOOKING BACK ✈
The journey so far from $0 to $300k.
It’s taken 92 months, or just over 7.5 years from $0 to $300k. I have quite a large percentage of my wealth as cash, which isn’t great for wealth building, but I’m really risk averse and prefer to sleep soundly knowing I have a large cash buffer for anything life throws at me, so in that sense… it’s ok ?
Over this time I’ve earned around $500k or so (probably more as I’m not included super contributions) but what’s really interesting to note is the growth on income per year (Bottom Middle chart)
In 2014 and 2015 Mrs MoneyPlant transitioned to working more so our combined income shoot up heaps, which really helped us put more money away. Our dividends also paid more, and as you see on the chart (bottom right) Dividends were the majority of our returns, as interest rates just couldn’t compete to offer the same value for money.
I think I used up my qouta writing about the importance of financial compatibility in a partner haha. If you really like this concept, though then here’s some further reading that you might be intersted in ?
- My First car
- Moved out of home (Bundaberg) to Toowoomba.
- First car accident… Cycled to work everyday for months while saving for a new one
- Moved to Brisbane to move in with my mate as housemates.
- Enjoyed a week’s holiday to Queenstown NZ (Snowboarding for a week, until I fractured my ankle, but definitely got my money worth).
- Moved back to Bundaberg (hometown) for a 25% payrise
- Moved back to Brisbane, was unemployed for awhile, got a temp job in sales
- Secured a role in IT Helpdesk
- Got a huge payrise and felt like I finally ‘had a break’.
- Started to date Mrs MoneyPlant.
- Lived life more and begun travelling (You may have picked up on the spend more and reward yourself vibe?)
- Went to China for 2-3 weeks and climbed the Great Wall and a lot of other amazing experiences.
- Visited Malaysia for 2 weeks.
- Road tripped around Tasmania for 2 weeks.
- Moved in together
- Work, Work, Work
$300k - $400k | September 2016 to October 2017 | Coming soon
- Mrs MoneyPlant had a motorbike accident (She's ok now)
- Holiday to Malaysia (crutches and all)
- We got Engaged! ?
- Went to Sydney for Vivid Lights light
- Mrs MoneyPlant studying her last year of Masters!! ??
- Still living with a housemate to save on living costs
- Wedding shopping (Oh that was fun!)
$400k - $500k | November 2017 to August 2018 | Coming soon
- Flatmate got married and moved out
- Got married and went on our honeymoon! ?
- Got a puppy! ?
- I started University to study IT
- Travelled to Malaysia ??
- Travelled to India ?
- Travelled to Singapore ?
- Mrs MoneyPlant completed her Masters ??
- Attended the 2018 Commonwealth Games at the Gold Coast
- Went to an Ed Sheeran concert (My first concert actually)
$500k - $600k | September 2018 to June 2019 | Coming soon
- Started a new role as a Training and Development Officer