Real Stories: Joc
What colour are you wearing?
Inflation. I love bright lipstick, so this shade isn’t as bold as I would normally wear, but I love it!
What sort of education did you have about finances growing up?
I come from a small business family. My parents had a restaurant in Caxton Street in the 70s and 80s, where I lived and grew up in Brisbane. As we lived above the restaurant, the business was always a part of my family, but my parents didn’t really talk about money.
My parents didn’t really talk about money. I think that's probably that generation, but we were always aware. We were always aware of it, because we lived it as we were surrounded by the business.
It was a successful restaurant, it was a very busy restaurant, my dad won lots of awards, they won all the Gourmet Traveler awards. It was a hard life and a busy life, like all small businesses. What was clear was that it was a fast way to learn about money. The ups, the downs. It was a totally different upbringing to most of my friends, who were professionals and on ski trips. My parents did educate us privately, but we couldn't afford to send us off on those kinds of things.
Did your parent teach you about money?
I guess my Dad did. My mum's extremely risk -averse and that's from her upbringing, growing up with a single parent, but Dad was a real risk taker, so they were like polar opposites. Dad would always encourage me to be in small business and entrepreneurial with ideas that I had. Because of this, I have been self-employed since I was 29.
So you had a boss lady business?
I opened a homeware store. I'm a designer by trade and I opened a homeware store in Bulimba in 2002 when I was 29 and I'm 51 now and I'm still self -employed now.
I managed to just survive COVID. Just scrapped it through.
What I have learnt in small business, is to not live beyond your means. I think a lot of people in business, especially young people who go into business as soon as they start to make a little bit of money they're buying new cars and they're spending on holidays and that's all fine but actually are you scrambling away money so that when you do have a downturn you've got a buffer, I suppose I have always been a little bit risk averse like my mom so I've always screwed a little bit of money away and that has served me because during COVID,
Do you think you have played a long game with your finances?
Yes. I still don’t spend money on frivolous stuff. You know, like I'm not into cars or big ticket items. I do have a passion for emerging art and I do spend money on art, but that appreciates in value. And I see that as money well spent and I've always put a lot of money into my super when I've had really good years.
I'm fortunate. My dad died when I was 25 So I haven't had him around for that advice since then, but I've always had a good accountant. He said to me straight away you need to be putting some money into your super. And I've always pumped as much as I can into my super and now I've turned 50 and I've got a pretty healthy super account.
It's taken the stress off because I look at some of my mum's friends who are now in their 80s and still renting.
What has been a big financial decision for you?
I just bought my first home. I bought a flat. It's so exciting. I mean I have owned other commercial property but it was in company names and with my ex -partner and all that sort of stuff. But this is the first thing that's been just mine. It feels great, and I have been able to renovate it and do things the way I want. As an Interior Designer it has been terrific!
“I always try and tell young people that compound interest is your friend!”
What advice would you give to your younger self?
I've had the opportunity to think about this because I have had younger staff work for me and I always try to tell young people that compound interest is your friend!
Young people always think "Oh, that's so boring !" But actually, do they even know what it means? If you start investing some small amounts of money, if you do nothing else, just be aware of where your super is. That's just a great start. Yeah. If you're not interested in anything else, have a look at where your super is.
Make sure you're in a great super fund, make sure it's actually earning some money and you're not just sitting in the low tier. If you're in the early 20s you can afford to be in the growth and then you'll be earning 10 or 12 % a year. You'll have a million dollars by the time you're time to retire just when you sleep!
Also, always have a buffer. You never know when your car is going to break down. My dad always said to have $1000 in your bank account, so it's there if you need it.
Any last comments?
I am proud of myself. I'm pretty financially secure on my own. I'm single. I'm not married. I've never been married, I don't have kids, so my hard work is mine to enjoy!
Joc Ridgeway - Little Bowerbird