Lawyer Aleks Nikolic shares her simple secret to building wealth

A lawyer who has been promoted three times in three years has revealed the “simple secret” to building real wealth – and it has nothing to do with your salary.

Sydney lawyer Aleks Nikolic had $3,000 in credit card debt as she tackled her poor spending habits and set herself on track to build an impressive $180,000 net worth by the age of 26.

Aleks said the key to building real, significant wealth is investing and embracing compound interest.

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“Compound interest is an important concept in investing and can have a huge impact on your financial future,” Aleks said in a recent video.

“Compound interest is when your investment earns interest not only on the original principal, but also on the interest earned over time.”

She added, “This means that the longer you leave your money invested, the more it can grow exponentially.”

For example, Aleks emphasized the power of investing $100 every two weeks.

She said if you invest $100 every two weeks for 10 years, you’ll end up with $37,000 thanks to compound interest. But if you wait 20 years, it will be $103,131.

After 30 years, that $100 every two weeks becomes $265,139, and after 40 years, it’s a whopping $570,341.

Sydney lawyer Aleks Nikolic (pictured) had $3,000 credit card debt as she tackled her poor spending habits and set herself on track to build an impressive $180,000 net worth by the age of 26

“Old money takes their money and puts it to work so it can grow instead of spending it on something that will be worth less in a few days or a few years,” she said.

“The most important thing to remember is that it doesn’t happen overnight. Building real wealth takes time. Investing early and consistently can be one of the most powerful ways to build wealth over time.”

Aleks added: “Don’t let the fear of market swings stop you from taking advantage of compound interest and the potential for long-term growth.

‘Make your money work for you’.

Earlier the Sydney lawyer revealed why investing is one of the keys to making sure you ‘raise’ your money to gain financial stability over time (photo Aleks)

Earlier, the Sydney lawyer revealed why investing is one of the keys to ensuring you ‘raise’ your money to gain financial stability over time.

“For me, investing was the not-so-secret sauce of how rich people got rich; they understood that a dollar earned could simply be multiplied by putting the money to work in an investment property, the stock market or a company,” Aleks previously told FEMAIL.

Aleks started investing just $15 every two weeks. As her income increased, so did the amount.

Her net worth is calculated by subtracting her liabilities from her assets, which include a $105,000 stock portfolio, $350,000 in real estate and savings.

Her obligations are her mortgage and $79,000 of HECS debt.

In 2019, she also bought her first $300,000 two-bedroom home in Canberra while still living in Sydney (Aleks pictured)

Today, she invests at least $400 every two weeks — sometimes as much as $1,000 — and hopes to one day be able to afford a house in Sydney.

“I invest mainly in exchange traded funds with a few selected individual companies. I use Pearler because I automate the whole thing and it comes out of my paycheck, just like a bill,” she said.

Before using Pearler, Aleks used Raiz – a micro investment app perfect for beginners who can invest as little as $5.

In 2019, she also purchased her first $300,000 two-bedroom home in Canberra while still living in Sydney.

Before buying any property, she said it’s important to consider location, ongoing costs and who the tenant would be in that market.

Before buying any property, she said it’s important to consider location, ongoing costs and who the tenant would be in that market.

Those who choose to buy a home in a state other than where they live are considered “renters” and may not be entitled to first-time homebuyers’ grants.

“I love my job, but I want to do it for love, not because I would go bankrupt if I got fired.”

Aleks shares advice on her Broke Girl Wealth Instagram page on how to boost your savings through investing (her advice pictured)

And while riding $100,000 on the stock market might sound daunting, Aleks said it’s not something to be nervous about.

“The biggest fear people generally share with me is, ‘What if I lose everything?’ The only way I can see this happening is if you’re selling at the trough of a market downturn (like the global financial crisis) or if you have all your eggs in a not-so-good basket,” she continued.

With a long-term view, I am prepared for recessions – maybe even significant and long-lasting ones! As long as you think long term and have an emergency fund, the ‘fear’ can be managed by diversifying (not having all your eggs in one basket).’

Aleks taught herself everything she knows about investing by reading books, blogs and listening to podcasts – and encourages others to do the same.

“I think investing is actually much less complicated than it sometimes seems, which puts people off,” she said.

“Use your money to build the life you want.”