Sydney, one of Australia's major cities, has a consistently high cost of living, which can be a challenge for young families. However, 27-year-old Queenie Tan and her 32-year-old fiancé, Pablo Bizzini, have taken an impressive step to create a more stable future for their newborn daughter, Gia.
According to British media on April 8, Ms. Tan is a licensed personal finance content creator who understands the importance of investment for financial stability. So when she and Bizini welcomed their daughter Gia on 19 March, they immediately opened an investment account for her and put $1,000 into the fund.
And this is not a one-time investment, they plan to add a certain amount of money to Gia's investment account every year. In addition to your own investment, cash gifts from friends and family are included in this special account.
This relentless investment will allow Gia to have about $41,000 at age 18, and that figure will grow to $1.8 million by the time she turns 65, assuming their chosen portfolio returns 8% per annum.
Ms Tam explained the aim of the decision was to ensure that Gia could enjoy a better economic position in the future, particularly against the backdrop of Australia's rising cost of living and house prices.
Ms Tam noted that while the cost of living in Australia continues to climb, by investing, they can provide GIA with more options, whether it's higher education or home loans.
The couple chose two exchange-traded funds (ETFs), one of which was a US ETF (VTS) and the other was a Global ETF (VEU). Although past performance is not indicative of future results, most ETFs have provided investors with returns of 6% to 12% per annum over the past 10 to 20 years.
However, for Ms. Tan, this investment is not just about money. Through this process, she hopes to educate Gia about the importance of financial management and investing, so that she will be interested in investing from a young age. Ms. Tan plans to invest 50% of her cash gifts into her account when she grows up at Gia to further strengthen her knowledge of investing.
The success of Ms. Tan and her fiancé Bizini is not accidental. As a family with seven sources of income, they have achieved financial stability through a variety of means, including social media brand partnerships, stocks, rent, event presentations, and advertising revenue. The couple's net worth increased from a staggering $200,000 to an impressive $800,000.
Their example shows us that financial success is not achieved by overnight miracles, but through perseverance, smart investing, and diversified income streams.
However, Ms. Tan also realizes that many people have misconceptions about investing, believing that it takes a lot of money to get started. But she stressed that investing is now easier than ever. She believes that as long as people have the skills to shop online, they can start investing. This simple yet effective philosophy makes investing more feasible for anyone, whether it's a small investment as low as $5, or a larger amount of money.