Wealth Building Strategies – KeepinitFrugal: Building financial Knowledge
financial knowledge

Thanks so much to Sarah and Laura at Keeping It Frugal for this week’s wealth building strategy: Building financial knowledge.

Each week, I have asked a finance blogger or podcaster to share their personal wealth building strategies. I am hoping these will be useful to compare lots of different strategies and perspectives to provide ideas and insight in your own investing journey.

Name/ Online identity:

Sarah & Laura – Keepin’ It Frugal

Website:

Keepinitfrugal.com

“9 to 5” profession:

We run two businesses – a graphic and web design business and a food blog.

Side Hustles:

Keepin’ It Frugal 😉

Selling on Gumtree & eBay

What are your investing goals?

We have two main goals.

The first one is to have our food blog support our lifestyle, and then use the extra growth to put straight into our investments.

The second goal is to reach traditional FIRE within 10 years.

What is your investing time frame?  How far along are you?

We’ve been investing since July 2018 and plan to not touch our investments for at least 10 years, when we hit FIRE.

What is the most powerful wealth building tool available to you?

The library. The ‘wealth’ of financial knowledge we’ve built up over the last few years through reading has been astronomical. There’s so many tips, tricks and systems we’ve implemented which have helped us achieve what we’ve built today.

What wealth building habits are you utilising to reach your goals?

  • Consistent investing on a monthly basis.
  • Still reading as much as possible to hone in on any new techniques.
  • Working hard to grow our digital business online, to support us and our investments.

What is your strategy to achieve this?

  • Read 50 books a year. I’ve actually already reached it this year, and I’m currently up to 61!
  • Investing is part of our monthly budget. I pay us, the mortgage and our shares every month. That way it becomes habit, and automatic.
  • We work on our food blog 5 days a week, working on new content and updating old posts as we go.

How long have you been using this strategy?

  • Reading: 1 year.
  • Investing: 2 ½ years.
  • Food Blog: 6 Years.

Were there other strategies before?  If so, what made you pivot?

Originally we were more focused on our design business, however, that required a lot more of our time for money. Whereas, the blog is much more passive, and we really enjoy cooking and creating the content for it, so it was a win win to start focusing on that more.

2020 was a big year of change for everyone, and it definitely made us question what we enjoyed most and make the pivot to concentrate on the blog.

What makes your strategy suit your personal situation?

Being foodies who love to travel, it makes sense to concentrate on our food blog, and utilise the skills from our design business to make it beautiful and informative!

We also love working, and don’t mind reaching FIRE not as quickly as some who feel they’re stuck in the rat race.

Where do you stand on home ownership vs renting? 

We purchased our home and plan to pay it off alongside investing.

We chose ownership over renting, as the right house became available in the right suburb. It was also a private sale, so we got it for a great price. House prices in South Australia are not as high as interstate areas, so our repayments (including all fees and utilities) are still cheaper than renting in the same area.

We find the stability of owning property and ability to renovate it as we please are both big wins for us.

Where do you stand on the great property vs shares debate?

Shares are the path we’ve taken. We enjoy the ease of monthly investing, and knowing the money is very liquid in the instance there was a real emergency at any point (not that we plan on touching our shares at all!). At this point in time, we don’t want the hassle of tenants, finding the right place and the upkeep and maintenance of property.

Where do you stand on investing for capital growth vs income? 

I feel like we’re currently standing in the middle. We love the dividends and franking credits available in Australia, but we also like the diversification and growth of overseas stocks like the US and EU.

Do you have any financial regrets?

No regrets – you can only make decisions based on what you know at the time. I’m glad to have started our journey when we did and look forward to seeing the progress we’ve made in another 5 years time.

Any final suggestions?

Consider why you are focused on the goals you’ve chosen, and how you can bring them just a little closer each day.

To see all the wealth building strategies shared with Aussie doc freedom, check out the Ultimate Step by Step guide to Wealth building, with wealth building strategies.

Aussie Doc Freedom is not a financial adviser and does need offer any advise.  Information on this website is purely a description of my experiences and learning.  Please check with your independent financial adviser or accountant before making any changes.

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