From his income and spending habits to his investment strategies and long-term goals, Hayden shares his journey towards Financial Independence with honesty and a wealth of detail. Here, we unpack the key takeaways from Hayden's financial philosophy and what it reveals about his approach to achieving FIRE.
Hayden’s income and spending habits
Hayden’s income comes from two primary sources: his role as a co-founder of Pearler, and his casual academic work at UNSW Sydney. Hayden’s role at Pearler earns him approximately $90,700 per annum, and his academic work adds flexibility with a pay rate of around $60 an hour.
His financial philosophy is refreshingly straightforward.
"I've always said that I'll spend money on whatever makes me happy, and I'll try and want less to be happy," he shares.
Much of his spending goes towards eating out due to a demanding schedule. However, Hayden ensures he earns more than he spends and adjusts his habits as needed. This practical and self-aware approach underpins his overall financial strategy.
Notably, Hayden’s minimalism stems from a deep understanding of his mental health needs.
"I don’t really know what I’ve spent in the last year. I know I earn more than I spend – that’s the most important prerequisite. Beyond that, I just try to do what makes me happy. Sometimes that’s not much money, sometimes it’s quite a bit. And if I need to spend money to manage myself, I will do that. I don’t overthink it," he says.
However, he adds that he continually evaluates whether it’s time to reduce such expenses, ensuring his spending aligns with his values.
Managing property expenses
Buying a property has significantly shifted Hayden’s expenses. His annual spending has increased from $20,000 to around $50,000, with two-thirds of that going towards his $3,100 monthly mortgage. Food and essentials account for much of the remainder, alongside discretionary travel spending.
Hayden’s approach to property ownership is both pragmatic and forward-thinking. He explains that buying an apartment was a step towards building equity and creating a more secure financial future.
While the financial commitment is substantial, Hayden balances this with a careful evaluation of his lifestyle needs. For instance, he prioritises experiences like travel, which he considers essential for his happiness and personal growth.
"I’m over 30 now, and I realise I need to start doing some things with my time and money," Hayden says. A recent frugal trip to Tasmania – involving a mix of camping and car rentals – reflects his ability to maximise value whilst indulging in meaningful experiences.
Investing and long-term strategies
Hayden’s investing journey began with monthly contributions to ETFs through Pearler’s Automate feature . Rising interest rates in 2022 prompted him to hold cash temporarily, but he later shifted to debt recycling after buying his apartment. Hayden explains that, after this purchase, he redirected all his spare cash into debt recycling, using it as a strategy to optimise his financial situation.
Debt recycling involves using home equity to invest and gradually converting a home loan into a tax-deductible investment loan. It has allowed Hayden to strategically leverage his mortgage while maintaining a disciplined investing plan, and has become a cornerstone of his approach to wealth-building.
In addition to his investments, Hayden has about $150,000 in superannuation , half of which comes from voluntary contributions . He values super for its tax advantages, calling it "the only investment where the government gives you money for spending on yourself in the future." His superannuation is actively managed, with a focus on high-growth and sustainable options.
Hayden’s financial strategies underscore a balance between risk management and long-term vision. By integrating debt recycling, regular investments, and superannuation contributions, he has created a framework for achieving his financial goals.
A quick note on debt recycling and other tax strategies: while they can be beneficial, they don't necessarily work for everyone. Chat to a licensed financial adviser or tax accountant for advice on your situation.
Goals for Financial Independence
For Hayden, Financial Independence isn’t just about early retirement, but creating a meaningful life.
"My biggest motivator for Financial Independence is to free me up to be the best possible parent I could be to the future children that I'd hope to have," he says. Hayden envisions a future where he can balance parenting with hobbies like sports and creative projects.
His Financial Independence targets range from $1 million for a minimalist lifestyle to $4 million for a comfortable family life, and he estimates he is halfway towards a modest goal of $1.3 million.
Looking back, Hayden acknowledges the trade-offs between financial security and life experiences. While proud of his diverse pursuits in his 20s, he reflects on the benefits of prioritising high-income opportunities earlier.
"It’s hard to quantify or find an equivalent for the money you’ve lost by doing those things," he shares. "It’s like a classic trade-off of life experience versus money in the bank account."
However, Hayden doesn’t regret the path he chose, as it taught him resilience and creativity. This nuanced perspective highlights the importance of aligning financial goals with personal growth.
Lessons from Hayden’s journey
Hayden’s financial journey shows how balancing ambition, mindfulness, and practicality can potentially pave the way to Financial Independence. From carefully managing his savings to making room for meaningful indulgences, his story offers down-to-earth insights for anyone navigating the path to Aussie FIRE.
Key takeaways from Hayden’s approach include:
- Define your priorities : Align spending and investing decisions with what genuinely brings you happiness and fulfilment.
- Leverage opportunities strategically : Consider aligned investing strategies to maximise your financial outcomes (while also doing your research, understanding the risks, and speaking to a financial adviser when in doubt).
- Balance the present and future : Don’t delay meaningful experiences, but ensure they fit within a sustainable financial framework.
- Embrace flexibility : Be willing to adapt your strategies as circumstances shift, such as changes to your finances or evolving life goals.
His journey illustrates that Financial Independence is not a one-size-fits-all goal. By tailoring his strategies to his values and circumstances, Hayden provides a relatable and inspiring blueprint for achieving both financial security and personal fulfilment.
We're always keen to hear your thoughts and topic suggestions, so hit us up at hello@aussiefirepod.com . Head over to Pearler for resources, calculators, and community insights that complement what we chat about on the show.
Until next time, keep dreaming big and living on your terms. Catch you on the next one, and happy long-term investing!
Dave and Hayden
