Little Miss Piggy Bank

Hi folks

Well, I have been systematically taking opportunities to chat to my daughters about investing.  The eldest and the youngest are VERY keen learners and the middle three daughters are surreptitiously  hovering around and quietly listening in (I notice out of the corner of my eye).

I have been showing them practical examples (and using online calculators etc) to show them the astounding power of investing 20% of their net incomes as well as prudently managing their employer-funded retirement funds.

Seeing as three of our daughters are finishing their nursing and teaching degrees soon, I have been using an average wage for a nurse in NSW Australia to demonstrate the numbers to them.

I'll share it with you all now too.

Little Miss Piggy Bank

  • 20 years old
  • Registered shift nurse in Emergency Department
  • Gross annual wage = $63,500
  • After tax annual wage = $50,000
  • Live and save off 80%  = $40,000
  • Invest 20% = $10,000 ($833.33 monthly)
  • Employer Retirement Guarantee 9.5% of gross wage = $6032.50 ($502.71 monthly)
So .....

Little Miss Piggy Bank @ 20 years old
  • Retirement Employee Investment = Nothing. Zilch. Zip, hand-outs from Dad
  • Personal post tax investment = Nowt. Penniless, Zero, hand outs from Mother Dearest

Little Miss Piggy Bank @ 30 years old
  • Retirement Employer Investment = $87,042 producing $5,601 annual return (reinvested)
  • Personal post tax investment = $144,270 producing $9,283 annual return (reinvested)

Little Miss Piggy Bank @ 40 years old
  • Retirement Employer Investment = $260,238 producing $17,168 annual return (reinvested)
  • Personal post tax investment = $431,339 producing $28,370 annual return (reinvested)

Little Miss Piggy Bank @ 50 years old

  • Retirement Employer Investment = $604, 862 producing $40,030 annual return (reinvested)
  • Personal post tax investment = $1,002,545 producing $66,350 annual return (reinvested)

Little Miss Piggy Bank @ 60 years old
  • Retirement Employer Investment = $1,290,590 producing $85,624 annual return 
  • Personal post tax investment = $2,139,125 producing $141,920 annual return 

In reality,  just shy of her 40th birthday, Little Miss Piggy Bank's investments will be earning her enough to fully cover her $40,000 yearly living and saving expenses. At this point, she will be therefore be FINANCIALLY INDEPENDENT.  Astounding ..... but true.

Show your children, nieces, nephews and their friends.  Wealth on a normal wage is utterly achievable. 

Be encouraged, stay nice and take care.

Mr HM (Phil)


  1. Thank you for this post Phil. I will be showing this to my four children especially our 20 year old son, he will appreciate seeing it worked out in simple terms.

    Have a great day,


    1. Yes, I find having it down in black and white makes it more readily understood. I have been verbally encouraging my girls about this for a while, but it was doing the maths and showing them the tables and graphs that was most effective. Evidence! .... not just ol' Dad ramblings.

  2. Phil, it's great that your daughters are learning about saving and investing very early.

  3. How I wish I had had this sort of information as a young person. How I wish the maths teacher had included some exciting examples when she taught us about compounding interest.

    My parents showed us a good example - paying the mortgage off early, never carrying a credit card debt, but never actually explained how they managed their money.

    Sadly, after the high interest rates of the 80s my father often said, ' you kids will never own your own home'. I am proving him wrong and will be mortgage-free soon, but am really playing catch-up on other types of saving and investing.

    The good news is, my kids DO get to get this information while they are still young :-)


    1. Yikes Madeleine, I remember when we were first married back in the 80's we have a small amount on fixed interest term deposit in a bank earning 17% interest!! How times have changed. My parents were frugal great with money (unbeknownst to me!) but never sat me down and talked about it. Strange. My kids are 'copping' it from me at any chance I get.

  4. Hi Phil, I've recently found your blog and am loving it, reading through from the beginning. this post particularly interested me.. could you please elaborate on where the personal post tax investments were placed to earn such a large amount? the best I can find in term investments is not much more than 2.5% - less than inflation. thanks.. Kim from Sydney :)

    1. Hi Kim. This is a really great question, so I think I will do a whole post about it and elaborate on it just like you have asked.

      I'm really glad you are enjoying Mr Home Maker. Welcome!


  5. this is great Phil! I wish I'd had someone teach me about money when I was young - had to work it out for myself. I gave both my kids The Barefoot Investor for Christmas and they seem to have really taken it onboard. My daughter told me recently she used to glaze over when I talked about finances but after reading the book she now 'gets it' - we should be teaching more about finances in schools. love the way you laid it out here, I might do this as well.

    1. The Barefoot Investor is a wonderful starting point - what a thoughtful present.


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