Peter Roxburgh learned to save as a young child and was on his way to financial freedom from his teenage years. “I read the Rich Dad Poor Dad book in my teens and I followed his investment strategies,” says Peter.
Attitudes towards investing
Rich Dad author Robert Kiyosaki advocates “paying yourself first”, which is something that has stood Peter in good financial stead. He calculates his savings and puts them aside before allocating spending money. “I put myself at the top of my budget. I actually pay myself 10% of my Salary before I pay Bills and other spending money.” He keeps a running budget and monitors his overall savings percentage, which is sitting around 15% currently.
Peter’s strategic approach to saving – as well as his determination to kill off his student debt fast, meant he could buy his first home aged 23 and had two under his belt by the time he was 25.
Preferred asset classes
Peter values security when it comes to savings accounts, where he parks liquid cash, but is more of a risk taker with his equities and funds. “I am looking for capital growth. I am definitely in the aggressive/risk taking category.”
Residential investment property makes up 60% of his net worth with the remainder in shares, funds and cash. The other asset class he has begun to invest in recently is fine art.
Peter’s views on the current economy
The government may be saying the recession is over, but Peter isn’t buying it. People’s spending is still being affected here in New Zealand.
Globally, share prices are still trading at a discount, which Peter sees as an opportunity. “Now is the time to buy and I am buying equities and managed funds. I know I will bank a lot of capital growth.”
Outlook for the next few months
Peter has concerns that demand hasn’t picked up in the past year as merchants expected because Kiwis are still focusing on reducing debt. “Spending is not going to be exceptional (in the near future) Christmas is likely to see a slight seasonal lift in spending but Peter doesn’t think that will carry forward to the New Year.