A lawyer who has been promoted three times in three years has revealed the ‘simple secret’ to building real wealth – and it has nothing to do with your salary.
Sydney lawyer Aleks Nikolic had $3,000 worth of credit card debt when she tackled her bad spending habits and set herself on a path to building an impressive net worth of $180,000 at age 26.
Aleks said the key to building real, significant wealth is investing and embracing compound interest.
A lawyer who has been promoted three times in three years has revealed the ‘simple secret’ to building real wealth – and it has nothing to do with your salary (Aleks Nikolic pictured)
‘Compound interest is an important concept in investing and can have a huge impact on your financial future,’ Aleks said in a recent video.
‘Compound interest is when your investment earns interest not only on the initial principal, but also on the interest earned over time.’
She added: ‘This means that the longer you leave your money invested, the more it can grow exponentially’.
Aleks highlighted, for example, the power of investing $100 a fortnight.
She said if you invest $100 a fortnight for 10 years, you’ll end up with $37,000 thanks to compound interest. But if you wait for 20 years, it’ll be $103,131.
After 30 years, that $100 a fortnight will become $265,139 and after 40 years, it’s a staggering $570,341.
Sydney lawyer Aleks Nikolic (pictured) had $3,000 worth of credit card debt when she tackled her bad spending habits and set herself on a path to building an impressive net worth of $180,000 at age 26
‘Old money takes their money and puts it to work so that it can grow instead of spending it on something that’s going to be worth less in a few days or a few years,’ she said.
‘The key thing to remember is it doesn’t happen overnight. True wealth building takes time. Investing early and consistently can be one of the most powerful ways to build wealth over time.’
Aleks added: ‘Don’t let the fear of market fluctuations keep you from taking advantage of compound interest and the potential for long-term growth.
‘Make your money work for you’.
Previously, the Sydney lawyer revealed why investing is one of the keys to making sure you ‘supercharge your money’ to gain financial stability over time (Aleks pictured)
Previously, the Sydney lawyer revealed why 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 previously told FEMAIL.
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.
In 2019 she also purchased her first $300,000 two-bedroom property in Canberra while still living in Sydney (Aleks pictured)
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
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.
‘I love my job but I want to do it for the love of it, not because being made redundant would make me bankrupt.’
Aleks shares advice on her Instagram page Broke Girl Wealth as to how you can boost your savings via investing (her advice pictured)
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).’
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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