‘Take your early career seriously’
Stuff talks to millionaires about how they got there. This week it’s Kiwi brothers Omar and Zane Sabre´, co-founders of Australiabased personalised leather goods label Maison de Sabre´.
How did you make your first $1 million and how old were you?
Omar Sabre´ (chief executive):
Maison de Sabre´ was started as a gateway to help Zane pay off his finalyear tuition fees when our father was diagnosed with leukemia in 2017. Even before graduating from dental school and beginning full-time work, we both always knew we wanted to start our own business, and our father’s diagnosis forced us to take the leap into entrepreneurship. We made our first million in the first year of operation in 2017 when the company clocked $1.9 million in revenue. I was 26 and Zane was 23. In December of that year, Zane was able to pay off his entire college degree.
Do you follow any personal finance rules?
Zane Sabre´ (chief operating officer):
During the early stages of your career, it’s OK to forgo short-term satisfaction for long-term gain. We invested $40,000 of our own savings to seed-fund Maison de Sabre´ and, while it was a significant investment at the time, three years later it has turned into one of the best decisions we ever made.
What are two money tips you’d give to a 20-year-old who wants to become a millionaire?
Zane: Money is a tool that you use to build enterprise value. Growing up, many people are taught to save their money. This is valuable advice and teaches financial discipline; however, it fails to recognise the value that can be created by spending money on activities that will yield a return. You can learn the benefits of smart investments by investing in the stockmarket, startup companies, and bonds, or you can simply put money into an interest-earning bank account depending on your risk tolerance.
Omar: Don’t chase money. You spend most of your waking hours working for the vast majority of your life. Choose a career path that you feel passionate about and that will push you to achieve the best you can.
Maison de Sabre´ reached $1.9 million in revenue in its first year.
Any financial myths you think ought to be busted?
Zane: One of the biggest mistakes young people make is believing that their early and mid-20s don’t matter, and that they can start building their career later in life. The truth is the early stages of your career present some of the biggest opportunities that set the foundation for future successes. There will likely never be a time in your life where you have less responsibility and less risk. So take early career opportunities seriously. If you’re smart about how you spend or invest your money, the value of every dollar of wealth that you create will multiply as the years go on.
Do you place more importance on saving or investing?
Zane: Investing. I remember learning about compound interest after watching an interview with Warren Buffett when I was younger, and my mind was blown. Ever since then, I’ve been a believer in investing wisely.
What is the worst financial decision you’ve made?
Investing in stock without doing due diligence.
Do you feel rich?
There is no magic bank balance that will bring happiness. Chasing money as a means of satisfaction is a recipe for prolonged disappointment. We choose to measure our success by reach and the size of our global community. We are humbled to be included on the Forbes 30 Under 30 list – this kind of recognition means more than any cheque ever could.
Can money buy happiness?
Omar: No. Money can make you smile. Money is physical wealth, but happiness is inner wealth. We were, of course, happy when Maison de Sabre´ made its first $1m and we are always happy to hit business milestones, as it proves the decisions we’re making are the right ones. Focusing on intangible drivers of happiness such as relationships with others is the best way to feel happy in the long run.
Do you think there is such a thing as reaching optimum wealth?
Zane:
‘‘Optimum’’ is measured differently depending on who you speak to. For most entrepreneurs, success is a moving target. They possess a never-ending desire to grow their businesses, which moves the goalposts of their sense of satisfaction. We reached our initial ‘‘optimum’’ of helping me pay off my university degree within the first year of operation. While we have always believed in Maison de Sabre´, this helped us realise the potential of the company, so we moved our goalpost to make $10m in revenue, which we achieved in year two. Our goal now is to be the biggest personalised leather goods brand in the world by 2024. It’s also important to appreciate how far you’ve come. That will keep you sane on the days when things might not go quite as planned.
Getting rich is one thing. Is staying rich just as difficult?
Omar: It’s all based on your values. If you live your life always chasing the next shiny thing then you will spend your last penny to acquire it. If what motivates you is not materialistic things, then you are far more likely to make good business decisions that favour things like spending within your means and preserving your wealth responsibly.