An overachieving marketing manager has revealed how she managed to invest $2,000 a month for the past six years – and she only just turned 25.
Queenie Tan has been looking after her finances since the age of 19, when she dropped out of university to find a job after saddling herself with $13,000 of debt.
By saving and investing a whopping 60 per cent of her income, the driven young YouTuber has amassed an extraordinary fortune for someone her age.
She now has a diverse financial portfolio and a $450,000 net worth that she shares with partner, Pablo, after purchasing their first property together – an apartment worth $500,000 – with a $100,000 deposit in 2019.
Net worth is calculated by adding a person’s total assets, minus any debt.
Overachieving marketing manager Queenie Tan (pictured) has managed to invest $2,000 a month for the past six years – and she only just turned 25
Queenie Tan’s six steps to financial freedom
1. Track your expenses.
2. Calculate your FIRE number.
3. Prioritise your spending.
4. Invest your savings.
5. Stick to your goals.
6. Become financially free.
Source: Invest with Queenie
In a recent video uploaded to her YouTube channel, Invest with Queenie, Ms Tan said she likes to split her investments into two – $1,000 on the first of the month and the other $1,000 on the 15th – through financial planning app, Pearler.
The self-taught investor uses an automatic payment plan, which allows the app to take money directly from her bank account.
She said the benefits of automatic investing are that it saves time and ‘takes the emotion’ out of it, while the downsides are that it makes it almost impossible to ‘time the market’ based on when it is cheapest and most lucrative to invest.
Ms Tan said this is best explained by calculating the cost of missing the best days in the market.
For example, if you invested $10,000 in Australian shares between 2003 and 2017, and missed the best 10 days of the market, the investment would cost you $12,838 in return.
Likewise, if you invested $10,000 between in the US stock market between those dates and missed the best days, it would cost you $15,367.
By saving and investing a whopping 60 per cent of her income, the driven young YouTuber (pictured) has amassed an extraordinary fortune for someone her age
Missing the best 10 days in the global stock market would cost you $9,615.
Ms Tan said her portfolio primarily consists of Exchange-Traded Funds (ETFs) through CMC Markets – a platform that allows users to buy Australian and international shares for low brokerage fees. She also uses a platform called Stake to buy US stocks.
Alternative Australian ETF platforms popular with first-time investors include the Raiz app, Spaceship and the CommSec Pocket app.
While fans often ask how she has the courage to invest such a large amounts of money, Ms Tan says she and her partner are always sure to have six months of living expenses saved in a separate emergency fund in case they need it for a rainy day.
Ms Tan (right) now has a diverse financial portfolio and a $450,000 net worth that she shares with partner, Pablo, (left) after purchasing their first property together – an apartment worth $500,000 – with a $100,000 deposit in 2019
To get the most out of your investments, Ms Tan said it’s important to understand what you are being charged in brokerage fees.
This is a fixed amount the broker charges you to hold and manage your investments, which might include annual fees, fees for researching investment data, and inactivity fees if you aren’t trading regularly.
According to Ms Tan, the average brokerage fee in Australia is $10. The more you invest, the smaller the fee becomes as a percentage of your total investment.
‘That’s why it’s important to consider brokerage fees against what we are investing,’ she said.
Ms Tan also warned first-time investors to watch out for management fees, which a percentage of your total investment as opposed to a fixed fee.
This means you are charged the same amount, regardless of how much you have invested.
To get the most out of your investments, Ms Tan said it’s important to understand what you are being charged in brokerage fees
The tips, which have been watched 7,810 times since they were uploaded online on October 13, sparked grateful responses with viewers saying it was ‘refreshing’ to see a young woman taking control of her finances.
‘$2K per month is a lot. Wowie, this was a really nice video diving in to how you diversify. Investing is the best to fight inflation,’ one woman wrote.
Another added: ‘I’ve been binge-watching your investing videos this entire week and love the information you share!’
Before she dropped out of her marketing degree to look for full-time work, Ms Tan says she was living from ‘pay cheque to pay cheque’, earning just $400 per week.
‘I had no savings and working only covered the bare minimum, so I decided to take a chance to drop out – thankfully it paid off,’ she said.
Before she dropped out of her marketing degree to look for full-time work, Ms Tan (pictured) says she was living from ‘pay cheque to pay cheque’, earning just $400 per week
In addition to her high-flying marketing role, Ms Tan also does freelance consulting work, earns money from YouTube ads, and owns an e-commerce business selling fake eyelashes.
While Ms Tan and her partner currently live in the one-bedroom apartment they purchased in 2019, they are hoping to purchase an investment property in the near future.
‘The more I learnt about investing, the more excited I became because it’s something that can be used to become financially free,’ she said.
‘I think investing is so important for young people to learn about rather than avoid.’
By the time she’s 35, Ms Tan hopes she will have enough money to work part-time.