24 Sep
24Sep

Hello there! Welcome to the first blog post for the Pregnant Millennial Investor! 

Let me start by briefly explaining who I am. If you haven't already guessed it, I am a pregnant millennial woman, who is embarking on her investing journey which will hopefully lead to financial independence in the (not too distant) future.

The reasons I created this blog are:

  • To be a good role model for my children and show them how to manage money wisely, also to teach them to start investing young
  • To share my journey with other professional women and document my learnings as a working young mother striving for financial success
  • To be accountable for my financial future and not just rely on my SO, which is why I am sharing every detail of my journey with you all.

Current Status

So where am I currently at? Here are some dot points to summarise.

  • 25 years old, have been working full time for 3.5 years in a decent 9-5 office job earning about $2,000 per fortnight after tax
  • Don't own property, currently renting and have been since late 2014
  • Have some shares that I have bought in the last few years (mainly blue chip ASX companies) - roughly $10,000 worth
  • Recently purchased $3,000 in an ETF. Planning to gradually buy more/different ETFs.
  • Run a very modest 'side hustle' making about $50/month on average
  • Have about a $30,000 HECS debt
  • Have about $50,000 cash savings, hoping to purchase a PPOR soon after baby is born
  • Baby due in January 2019.

With that said, here is a breakdown of my assets and liabilities. I am approximating some of the values from 2014-2017 as I didn't take records.

Net Worth 2014-Current

So here is my starting point, about $50,000 net worth if you include my HECS debt, or $80,000 excluding it. Definitely not the perfect start and at 25 years old with a baby on the way I would have liked this to be a little higher, but I can't complain. I'm really excited to see this grow and also for the challenge.

What does Financial Independence Look Like for Me?

Just briefly, I will explain what financial independence looks like to me but I want to do a more detailed blog post about this in the future. 

When I am financially independent, this is what my life will look like:

  • Able to work a few days a week to keep occupied if I wish, but without the financial burden to
  • Feel like I am able to look after my babies as much as I want without having to go to a job
  • Have more time for my hobbies and side hustles

The investment figure which I have calculated I need to achieve this lifestyle is around $1,000,000. At a conservative 5% rate of return, I can comfortably live on $50,000 per year (before tax). Plus I will probably still work a few days each week to keep myself occupied and continue building wealth.

You may be wondering, where does my SO come into this? Well, this blog is about independence, so I am going to only include my share of things. For the most part, our finances are separate anyway, and we aren't married. This baby was somewhat unplanned but we are so excited to be having it! We were planning to have one in the next few years anyway. As I was saying our finances are mostly separate and we don't have joint bank accounts or anything, however we will be purchasing a home together after the baby is born. Thus I will be breaking down what my share of that is when the time comes to write about that.

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