It took $3,000 worth of credit card debt for young Sydney lawyer Aleks Nikolic to tackle her bad spending habits and set herself on a path to amassing an impressive net worth of $180,000.
The debt took nine months to repay and made her focus on financial security and stability, which meant finding ways to make her money work for her rather than the other way around.
The 26-year-old says investing is one of the keys to making sure you ‘supercharge your money’ to gain financial stability over time.
‘To me, investing was the not-so-secret sauce to how wealthy people became wealthy; they understood that a dollar earned could be multiplied simply by putting the money to work in an investment property, the stock market or a business,’ Aleks told FEMAIL.
Sydney lawyer Aleks Nikolic (pictured) was $3,000 in debt five years ago before she started building her investment portfolio. Today she has an impressive net worth of $180,000
The 26-year-old says investing can ‘supercharge your money’ and make it work for you
Aleks started investing just $15 per fortnight. As her income increased, so did the amount.
Her net worth is calculated by deducting her liabilities from her assets, which include a $105,000 stock portfolio, $350,000 property and savings.
Her liabilities are her mortgage and $79,000 HECS debt.
Today she invests at least $400 a fortnight – sometimes as much as $1,000 – and hopes to one day be able to afford a house in Sydney.
‘I invest predominantly in exchange-traded funds with a few select individual companies. I use Pearler because I automate the entire thing and it comes out of my pay just like a bill,’ she said.
Before using Pearler, Aleks was using Raiz – a micro-investing app that’s perfect for beginners who can invest as little as $5.
In 2019 she also purchased her first $300,000 two-bedroom property in Canberra while still living in Sydney.
Before buying real estate, she said it’s important to consider the location, ongoing costs and who the renter would be in that market.
Those who choose to purchase a home in a different state to the one they live in are considered ‘rentvestors’ and might not be entitled to first home buyer grants.
Aleks started investing with just $15 per fortnight, but as her income increased, so did the amount. She started by using the micro-investing app Raiz and now uses Pearler
In 2019 she also purchased a $300,000 two-bedroom investment property in Canberra while still living in Sydney
‘In all honesty, I want financial stability. To me, that looks like passive income that pays my bills and lifestyle,’ she said.
‘I love my job but I want to do it for the love of it, not because being made redundant would make me bankrupt.’
And while having $100,000 riding on the stock market may sound daunting, Aleks said it’s not something to be nervous about.
‘The biggest fear people generally share with me is: “What if I lose it all?” The only way I can see that happening is if you sell at the bottom of a market downturn (like the Global Financial Crisis) or you have all your eggs in a not-so-good basket,’ she continued.
‘With a long-term view I’m prepared for downturns – maybe even significant and long ones! As long as you think long term and an emergency fund, the ‘fear’ can be managed through being diversified (not having all your eggs in one basket).’
‘In all honesty, I want financial stability. To me, that looks like passive income that pays my bills and lifestyle,’ she said
Aleks taught herself everything she knows about investing by reading books, blog and listening to podcasts – and encourages others to do the same
Aleks taught herself everything she knows about investing by reading books, blogs and listening to podcasts – and encourages others to do the same.
‘I think investing is actually far less complicated than it can sometimes seem, which puts people off,’ she said.
‘Use your money to build the life you want.’
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