Jervis is a Digital Marketing wizard by day and an investing nerd by night. Young, debt free and with a high appetite for risk, Jervis’ investment portfolio is made up of Kernel funds, private equity, crypto and more. But his journey to create and grow his wealth hasn’t been as linear as some. Read on to find out why.
The investing journey: from desperate to determined
Jervis’ journey with investing started when he was 22, late in his view. A recent uni grad, he had just blown through his savings and was facing a mountain of debt. Can anyone relate?!
Living paycheck to paycheck, he felt lost when it came to his finances. So, tired of being broke, and looking for a solution he started educating himself about money and investing. Seeking out stories from those who had been in his situation and had found a way out.
While he didn’t learn from anyone in particular, he picked up pieces of knowledge from those he crossed paths with over the years. Even becoming a little obsessed with successful fund managers and how they built their portfolios.
Additionally, after a little experimentation, he learnt about growing his net worth as a whole which helped shift his perspective away from thinking of investing as the only way to grow wealth.
A view that has been beneficial to helping him stay focussed on the bigger picture and moving towards a core life goal for many: financial freedom.
He’s got ambition and the goals to match
Jervis’ answer to “Do you have financial goals you’re currently working towards?”
…Lamborghinis.
Just kidding. He’s got short and medium term goals, such as saving up for travel and buying a Lambo. Again, kidding.
His end goal is to build up enough of a cushion to free up time to do the things he enjoys. An aspiring philanthropist, Jervis views investing as the vehicle that will allow him to reach his goals, faster.
Alongside investing, Jervis is strict on how he manages his money. Rather than following the traditional 50/30/20 approach to budgeting, Jervis favours a 30/30/30/10 model. Invest 30%, save 30%, live off 30%, and spend 10%.
When Jervis says “spend” he means discretionary expenses, the wants rather than the basic needs of life, which impressively he keeps to 30%!
Investment clubs can help improve financial literacy
One of the ways Jervis has continued his investment journey is through being a part of an Investment Club. How did this come about? Very randomly, we hear.
Roughly a year into his investment journey, Jervis was sharing his learnings with his flatmates which sparked an interest in learning more about growing money. Not quite sold on the idea of investing yet, they decided to try their hand at starting a side hustle designing and building websites first. 6 months later they were bored and ready to look at other options.
They then decided to put the earnings from the business into a savings account, topping this amount up by $200 each p/m with the intention to continue growing the capital. But after quickly realising keeping their money in a savings account wasn’t working for them, they turned to investing instead.
How does the investment club work?
If you’re just as intrigued as we are and wondering exactly how the investment club works, listen up!
Decisions around what to invest in are made as a group. It starts with a sales pitch which leads to an open discussion about any investment idea. If it’s impossible to come to a decision, they put a pin on it, go away and educate themselves more and pick the idea back up at their next meeting. The rest is well, history.
As a group, they’re aligned on the purpose of the investment club so their risk levels are similar. The money invested through the club is just a small portion of each of their individual portfolios, so they consider it “play money”. Plus a good opportunity for them to learn together and have a bit of fun along the way. A running joke is that they should go to the casino and put it all on black…a decision they have yet to unanimously agree on.
While respectful of the investment club’s privacy, Jervis shared that the capital value has now grown to roughly $35,000 – $40,000 over 3 years. Not bad for “play money”!
When Jervis met Kernel
For a passive investor like Jervis, low cost, well diversified index funds are his investment of choice. He chose Kernel not only because he thought our low fees and innovative funds were attractive but because our investment ethos aligned with his values. Oh, and there’s the added benefits that come with investing in unlisted index funds, like avoiding dividend drag!
Outside of this, his portfolio includes riskier investment types including private equity, emerging markets and crypto. With a long-time horizon and being debt-free, he feels he can afford to take on a higher amount of risk.
And the investment club? Well, he didn't manage to sell the club members on the idea of investing in Kernel funds given their primary focus was on short-term, high risk investments However, as individuals looking for a low cost, diversified long term strategy they were convinced and have since each become Kernel investors.
What has changed since first meeting Kernel?
Our first update on Jervis was in 2021, since then he's been on quite the adventure! But despite travelling the world, engaging in side hustles, and relocating to Singapore for a new job, Jervis' goals have remained largely unchanged.
However, he has made some adjustments to his budgeting model. Currently working remotely from Asia as a digital nomad, and still generally following the 30/30/30/10 rule, Jervis has increased his cash position. This is primarily as an emergency fund, considering the economic uncertainty and for peace of mind.
While the aspiration of owning Lambos still lingers in the back of his mind, he now has more significant opportunities to volunteer his free time as he travels, thanks to his work.
The investment club has also dissolved with the accumulated capital injected back into their own personal portfolios. Instead, the club has become a network of like-minded individuals sharing ideas, learnings, and investment opportunities.
How his relationship with money has evolved
Although his love for low-cost index funds remains the same, Jervis's relationship with money has evolved.
“I think I am less attached to growing my net worth and more focused on figuring out how to build a lifestyle that brings me joy and developing meaningful connections with like-minded people—regardless of the impact it has on my net worth,” says Jervis.
He strongly believes that he has laid the groundwork for financial independence in his later years. This belief has freed up a considerable amount of mental space for him to concentrate on the things that matter most to him.
Jervis’ investing tips
Not short on handy investing tips, Jervis’ winners are:
Don’t try to time the market. Taking a punt and trying to guess what’s ahead is not an investment strategy, it’s a waste of time (in his words!).
Following #1, have an investing strategy! Jervis himself is investing for the long term so follows a buy and hold strategy. He also regularly contributes money to his investments over time by setting and forgetting his payments. Regardless of what happens in the share markets in the short term, stay disciplined and keep investing!
If you haven’t started investing, start today! Compound interest is your best friend, so read up on the rule of 72. Time is your biggest advantage, use it!
Invest in yourself. Stay curious and always continue to educate yourself. The more you learn, the more you can earn.
Start tracking your net worth. It’s the big picture that tells you where you stand financially. Keep an eye on it to track the progress you’re making toward your financial goals or warn you if you’re sliding backwards.
Remember your 'why': There will be times when it will be hard to stay disciplined, especially when lifestyle creep catches up and temptation sets in. Remember to ask yourself ‘why’ you’re investing to help stay on course.
