Presented by

Meet Ryan

What was your relationship with money like growing up?

I've always been interested in money, I think it comes from having a bit of a maths brain. I was always good with numbers and was naturally drawn to understanding how money works. I've also always been a pretty good saver, but it's really only in the last five years or so that I have started to actually let those savings work for me rather than just letting it sit there.

Growing up, the message was work hard, save up and one day buy a house. That was the only path to building wealth that anyone really talked about. Lately I have come to understand that there are a lot of other ways to put your money to work, and that the old save-and-buy-a-house model is not the only option.

And what is your relationship with money like now?

My relationship with money has certainly evolved as I’ve gotten old. Talking about money is still a bit of a taboo thing though. People will openly tell you what they pay in rent or that they own a house which is worth millions of dollars, but no one is going to casually mention they have got $10,000 in shares. I think that needs to change.

What was your first job? (And how much did you get paid?)

My first job was as a paperboy, or more accurately, a leaflet deliverer. We got paid by the leaflet, maybe a cent or two each, but you would deliver multiple catalogues together so you might make around five cents per drop.

I was probably 12 at the time. There were stories about other kids who just threw them in the bin rather than delivering them, but I was a good boy, so I did the right thing.

How did you first come across investing?

I first came across investing through Equity Mates. A mate put me onto the podcast and then I went down a bit of a rabbit hole. I knew vaguely what shares were but had no idea how to actually buy one or find a broker. That was just before COVID, and once I started listening I was pretty hooked.

Was there a memorable early investment?

My first purchase was the Nasdaq ETF NDQ, and I was pretty disappointed with it after a few months because a stock tip from the same mate who introduced me to investing doubled pretty quickly. I was tempted to sell the ETF and go all in on individual stocks, but that stock eventually went to zero and NDQ has been flying ever since. Lesson learned.

The stock was Chimeric Therapeutics (CHM). I bought it at around 30 cents and it is now sitting at 4 cents. I still hold it, there is not much point selling at this stage. What that experience taught me is that with individual stocks, you have to be right when you buy and you have to keep being right. Constantly researching, understanding whether the company is still undervalued, whether the thesis still holds. I realised pretty quickly that I was not going to put in that work, so I shifted my focus to ETFs and have not looked back since.

As a small business owner, how do you think of investing money in that compared to the sharemarket?

Yep so I am a part owner of a gym called Locals, and the experience of going all in on a small business is something I will never forget. I did not sleep properly for about a month leading up to it. You just cannot switch your mind off, you are constantly second-guessing yourself, wondering if you are giving everything up on a bet that might not work. There is that voice in the back of your head saying, I have got a Uni degree, I have got a career, and now I am risking it all on this.

That said, there is a safety in shares that surprised me. I actually feel much more secure with money in the share market than in a small business. The chance of Tesla or a major indices going to zero is very low. A small business can be wiped out overnight, COVID showed that. The upside of a small business when it works is incredible, and the satisfaction of building something yourself is something an ETF can never give you. But the stress and the risk are very real.

How are you currently investing and can you provide a breakdown of your portfolio?

I get paid weekly, which gives me pretty good cash flow, so I have a few automated investments that go out each week without me having to think about it. On top of that, when I get paid from my engineering work I will add a bit more on an ad hoc basis. A mix of set and forget and occasional top-ups.

Where do you see investing taking you?

Optional work is the big one for me. I am obviously a long way from that, but it is what I am working toward. Beyond that, I love the idea of being able to set my future kids up financially.

Putting money away when they are born, not telling them about it, and then one day showing them what it has grown to. Something like, I put $1,000 in when you were born and now it is $10,000. Having the option to do that would be pretty special.

What is one super extravagant and outlandish purchase that you hope investing will be able to buy you in the future?

A holiday house in Australia that the family can actually use, somewhere my Mum can go, or my brother can take his kids for a weekend.

Not renting it out, just having it as a family place. Somewhere not too far, maybe down around Jervis Bay, close enough for a weekend trip. That is the dream.

If you only had 25 words to convince someone to invest, what would you say?

Google a compound interest calculator. Put in $50 a week at 10% until retirement and just look at the number. That is all it takes.

___________

We want to hear your ‘How I Got Started’ stories. Respond to this email if you would like to be featured and we’ll get in touch!

Tomorrow Ryan joins Jess on the latest episode of How I Got Started. After taking the plunge into owning his own business and moving away from a stable salary, Ryan shares how that’s impacted his investing strategy and the highs and lows of being a small business owner. Check out the full chat in tomorrow’s episode of Get Started Investing. (Spotify | Apple | YouTube)

Get paid to shop (yes, really)

If you're spending money online anyway, you might as well earn some back.

ShopBack is a free app that gives you real Cashback on everyday purchases...Groceries, fashion, travel, electronics at hundreds of stores.

The best part? It's not points or credit. You can transfer your Cashback straight to your bank account and put it to work: top up your brokerage, add to your emergency fund, or just spend it however you like.

Download ShopBack for free and use code GETSTARTED20 to get a $20 bonus once you've earned your first $10.

The Tool That Makes Investing Feel Real

Ryan's pitch for getting someone into investing is to Google a compound interest calculator, put in $50 a week at 10% until retirement, and have a look at the number. He reckons that is all it takes. Jess recently sat down with Isabelle, an accountant and founder of MindHerMoney, and it turns out there is a reason that works so well. (Spotify | Apple | YouTube)

Isabelle built a tool called the Real Price Tag. Where instead of just looking at what something costs today, you look at what that money could be worth if you invested it instead.

Jess tried it live on the show with her $120 a month nail appointments. Invested over 23 years at a 7% annual return, that $120 a month could be worth $81,863. Jess would’ve spent $33,000 on her nails by the end of the 23 years.

Isabelle: It's bringing that awareness to your decision rather than it being this vague number you're not really sure about. It lets you sit with it and think, do I actually value this?

The point is to make the trade-off more visible. Some things you will look at and decide they are absolutely worth it. Others you will realise you barely noticed you were spending on them. Either way, you are making a conscious choice rather than a passive one.