‘If you can’t afford it, don’t buy it’

How I Made My First Million

Stuff talks to millionaires about how they got there. This week, it’s the founder of international business consultancy firm Sysdoc, Katherine Corich.

How did you make your first $1m; how old were you?

I founded Sysdoc when I was 25. As a company we hit $1 million in revenue within five years.

Personally, [it was] a few years later, as we have always first and foremost re-invested in Sysdoc to keep the company growing and debt-free.

Do you follow any personal finance rules?

Keep things simple and strive to be debt-free. If you can’t be, then keep personal debt to an absolute minimum.

Be generous in how you live and help guide others in sensible financial management.

My dad always used to say ‘‘if you can’t afford it, don’t buy it’’, and it’s been a really good guiding principle.

What are two money tips you’d give to a 20-year-old who wants to become a millionaire?

Work hard. Give your very best to whatever you do and do what’s right.

Don’t focus on the money as the reason you do something. It’s a rabbit hole to nowhere.

Any financial myths you think must be busted?

That economic growth is infinite. It is not. We all need to live more consciously and the present challenges are certainly refocusing our lens on this.

Do you weigh more importance to saving or investing?

Saving. It’s important as we all need to save for a rainy day if that is possible. I recognise that this is luxury for some; however, small amounts put aside is a good approach.

When it comes to investing, I recommend a diverse investment strategy, corporate shares (in companies whose values you believe in), land, property.

It can also be fun to hold a few early-stage, higher-risk stocks but where possible, follow the money with your expertise as a mentor to start-ups.

What was worst financial decision you made?

Investing in another company when I had not done enough due diligence on the executive team/ other shareholders.

I had fallen in love with the product and founder.

This seemed to give me temporary amnesia around the importance of a high-functioning executive who work as a tight-knit team and the importance of governance oversight when things don’t work to plan.

Do you feel rich?

Yes I do. But this is because my heart is full, rather than my wallet being heavy.

Can money buy happiness?

No, happiness needs to come from within.

It’s important to look after all the pillars of your life. Balance is achieved on many levels (work and life balance, meaningful work, health, fitness, family, friendships, community, social contribution).

Do you think there is such a thing as reaching optimum wealth? If so, have you reached this point?

Optimum wealth is subjective.

For one person, it may be knowing that they can meet weekly outgoings; for another, it might be when the mortgage is fully paid and a comfortable retirement is assured.

Or it may have a pre-set number. For example: ‘I’ll be happy when I have xx million in the bank.’

For some, it might be knowing that their life work has truly made a difference (a scientist finding a cure, material impact in reducing carbon emissions).

What is your advice to people to stay wealthy?

Work hard and don’t be obsessed by money. Do what’s right.

Constantly innovate and reinvent your services and products. Stay true to your roots, and the person you were before you became rich.

Listen to what people at different ages and stages are saying about what’s important.

Live with humility, gratitude and generosity.