How to get poverty & accumulate wealth and freedom

[daisy83]

Can someone give me advice on getting out of poverty and accumulate true wealth in New Zealand?

I came up with my own plan but i don't know if its the right path to financial freedom?

Age: 39

City: Auckland

Work: employed full time, been with the company for almost 13 years

Owned house, Mortgage balance $154,000 fixed until June at 6.49%

Must complete Emergency Fund and Raining day funds before looking at investing. Once Emergency Fund and Raining day account is completed, any surplus money from pay goes into a EFT account. Keep doing this until 50 years old and analysis finance situation.

My definition of Emergency Fund is enough funds to cover 12 months if current living monthly expenses. Raining day fund is for unforeseen issues e.g. Car engine or transmission failure, a burst water pipe etc...

Here's my figures so far:

Total balance in 4 different online saving bank accounts: $51,267.45

Total monthly expenses: $4,676.09

Target 12 months living cost required $56,113.08

Target Raining day funds: 5,000-7,000

Require $11,845.63

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Expenses breakdown:

Mortgage $1600

Rates $199.98

Water $98

Power including EV cars charging $275

Insurance house $116

Insurance car $116

Insurance Health $174.86

Internet $98

Food $500

Mobile phone plan $80.50

Misc - House, car rego & WOF $35

Car loan payment $882.75

Car lease $500

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Your thoughts and inputs will be appreciate.

 

[solvej]

@daisy83 This is considered poverty? I think the fact you own a house and have savings means you are definitely not in the poverty category..

 

[nicknicks]

@daisy83 I would say that you're in a position where at least 40% of NZ would class as wealthy. I would still put some money into investments.

 

[daisy83]

@nicknicks I am planning to invest once the Raining day and Emergency funds are all filled.

 

[nicknicks]

@daisy83 Let me explain how you can do both! Put the funds that you're not touching into high interest savings account and I would even recommend term deposits. And I would say if you haven't invested before, maybe put in $20 a week and see how it goes. It's a great place to store money where it can grow.

 

[jesus_is_our_lord]

@daisy83 Is this a humble brag?

 

[jonnylugs]

@daisy83 Try /personal finance nz

 

[ilovegod888]

@daisy83 Poverty

 

[otruitt]

@ilovegod888 Lmao wtf ay

 

[milkywaymercy]

@daisy83 This person owns a house and thinks they are in poverty! Couldn't be more out of touch if they tried.

 

[clolou]

@milkywaymercy I mean technically someone who owns a house can be in poverty because they can't afford the mortgage, along with food, etc.

But it's also hard to call it poverty in this housing economy because someone could simply liquidate their money by selling the house and be fine financially for years without doing anything else.

 

[daisy83]

@milkywaymercy I was lucky back in 2014 I purchased a house in Auckland. It was the best advice that I receive from the companies group accountant. I had a side chat to her during lunch time breaks, she said " Did you know I don't worry about job security, I don't need to work but I choose to work" from talking to her daily i found out that she has 4 houses and a commercial building in Auckland, ALL paid off. She said get into a property in AKL no matter what location you will appreciate capital gains, this was back in 2013.

 

[clolou]

@daisy83 I just want to point out that the normal advice of how to escape a poverty situation when someone owns a house is to sell the house. That is the quickest and easiest action to solve financial woes. If you're not trying to figure out how to afford both food and your electric bill this isn't the group for you

 

[in_jesus_i_trust]

@daisy83 Poverty is someone with no savings, no house, rent and live paycheck to paycheck, definitely don't have $1200/week in living costs.

Once you've built your emergency savings, invest the rest in a diverse ETF for the next 30 years and enjoy retirement.

 

[daisy83]

@in_jesus_i_trust What is a good ETF?

 

[in_jesus_i_trust]

@daisy83 Invest in a low fee NZ PIE fund that tracks either S&P500 or a Global index. Go S&P500 if you prefer higher risk or higher reward (due to overexposure to tech stocks) or Global if you prefer more diversified (lower risk lower return).

Common recommendations would be InvestNow foundation series (US or Global), Smartshares USF or TWF, Kernel. I use InvestNow global personally.

 

[milkywaymercy]

@daisy83 Maybe stop placing $800 sports bets if you are concerned about your finances.

 

[daisy83]

@milkywaymercy I made a big lost over the weekend $3,500. I have stopped betting once and for all. Hence why im sorting out my finances! Lost big on the Warriors and stupid UFC fights. its a habit for me.

 

[paulfromnowhere]

@daisy83 Womp womp

 

[cariep]

@daisy83 I’m sorry but this is not poverty.