A high-performing marketing executive has revealed how she’s invested $2,000 a month for the past six years — and she’s only just turned 25.
Queenie Tan has taken care of her finances since she was 19, when she dropped out of college to find a job after saddled herself with $13,000 in debt.
By saving and investing a whopping 60 percent of her income, the driven young YouTuber has amassed an extraordinary fortune for someone her age.
She now has a diverse financial portfolio and a $450,000 net worth that she shares with partner, Pablo, after purchasing their first home together — a $500,000 apartment — with a $100,000 down payment in 2019.
Net worth is calculated by adding up a person’s total net worth, minus any debts.
Superlative marketing executive Queenie Tan (pictured) has managed to invest $2,000 a month for the past six years — and she’s only just turned 25
Queenie Tan’s Six Steps to Financial Freedom
1. Track your expenses.
2. Calculate your FIRE number.
3. Prioritize your expenses.
4. Invest your savings.
5. Stick to your goals.
6. Become financially free.
Source: Invest with Queenie
In a recent video uploaded to her YouTube channel, Invest with Queenie, Ms. Tan said she likes to split her investments in half — $1,000 on the first of the month and the other $1,000 on the 15th — through financial planning. app Pearler.
The self-taught investor uses an automatic payment plan, which allows the app to withdraw money directly from her bank account.
She said the pros of auto investing are that it saves time and takes out “the emotion,” while the cons are that it’s nearly impossible to “time the market” based on when it’s cheapest and most lucrative to buy. to invest.
Ms Tan said this is best explained by calculating the cost of missing out on the best days in the market.
For example, if you invested $10,000 in Australian stocks between 2003 and 2017 and missed the best 10 days of the market, the investment would cost you $12,838.
Likewise, if you invested $10,000 in the US stock market between those dates and missed the best days, it would cost you $15,367.
By saving and investing a whopping 60 percent of her income, the driven young YouTuber (pictured) has amassed an extraordinary fortune for someone her age
Missing the best 10 days in the global stock market would cost you $9,615.
Ms Tan said her portfolio consists primarily of Exchange-Traded Funds (ETFs) through CMC Markets – a platform that allows users to buy Australian and international stocks at low brokerage fees. She also uses a platform called Stake to buy US stocks.
Alternative Australian ETF platforms that are popular with novice investors include the Raiz app, Spaceship, and the CommSec Pocket app.
While fans often ask how she has the courage to invest such a large amount of money, Ms. Tan says she and her partner can always save at least six months’ worth of living expenses in a separate emergency fund in case they need it for a rainy day. .
Ms. Tan (right) now has a diverse financial portfolio and a $450,000 net worth that she shares with partner, Pablo, (left) after purchasing their first home together — a $500,000 apartment — with a $50 down payment. 100,000 in 2019
To get the most out of your investments, Ms. Tan said it’s important to understand what you’ll be charged in brokerage fees.
This is a fixed amount that the broker charges you for holding and managing your investments, including annual fees, fees for researching investment data, and inactivity fees if you don’t trade regularly.
According to Ms Tan, the average brokerage fee in Australia is $10. The more you invest, the lower the fee becomes as a percentage of your total investment.
“That’s why it’s important to weigh brokerage fees against what we’re investing,” she said.
Ms. Tan also warned novice investors to watch out for management fees, which are a percentage of your total investment rather than a flat fee.
This means that you pay the same amount no matter how much you have invested.
To get the most out of your investments, Ms Tan said it is important to understand what you will be charged in brokerage fees
The tips, which have been viewed 7,810 times since they were uploaded online on Oct. 13, sparked appreciative comments from viewers who said it was “refreshing” to watch a young woman take control of her finances.
“$2K a month is a lot. Wowie, this was a really fun video where you dive into how to diversify. Investing is the best way to fight inflation,” one woman wrote.
Another added: ‘I’ve been watching your investing videos all week and I love the information you share!’
Before dropping out of her marketing degree to look for a full-time job, Ms. Tan said she lived on “paycheck to paycheck” and made just $400 a week.
“I had no savings and work only covered the bare minimum, so I decided to take the chance to quit — thankfully it paid off,” she said.
Before dropping out of her marketing degree to look for a full-time job, Ms. Tan (pictured) says she lived from “paycheck to paycheck” and made just $400 a week
In addition to her prominent marketing role, Ms. Tan also does freelance consulting work, earns money from YouTube ads, and runs an e-commerce business that sells fake eyelashes.
While Ms Tan and her partner currently live in the one bedroom apartment they bought in 2019, they hope to purchase an investment property in the near future.
“The more I learned about investing, the more excited I became because it’s something that can be used to become financially free,” she said.
“I think investing is so important for young people to learn rather than avoid.”
By the time she’s 35, Ms. Tan hopes she’ll have enough money to work part-time.