‘I’ve never used a credit card because I’ve always feared debt’

For Alex Kingsmill, studying law and watching her friends move into the corporate world destined to earn big bucks in their first year just didn’t appeal to her.

“There seemed to be a choice between happiness or life,” she says. “I could see I wouldn’t be happy in the corporate space”.

Alex Kingsmill likes the idea of only making big purchases if you can afford them.

The Melburnian, now 44, opted for a job in the public sector with a more modest wage. But a few years ago, she decided that the law “just wasn’t cutting it” for her any more, and wondered what else could be out there for her.

Losing her mum resulted in her gaining an inheritance, enabling her to purchase her first home in suburban Fitzroy. “I also went travelling overseas with my partner for a year. We had a strict budget and did a lot of camping along the way,” she says.

The time abroad also gave her a chance to reflect on what sort of career might make her happy, prompting a return to Australia and her studying a Master of coaching psychology. She later established her own practice – and hasn’t looked back since.

Alex admits she was lucky to have the inheritance “safety net”, which allowed her to go out on her own. She took a drop in income along the way, but has always been adept at living within her means.

“It was a risky move, but it’s paid off,” she says. “I’m really lucky that I’m in a position to be earning terrific money now.”

Growing up in Canberra, Kingsmill admits money wasn’t a regular topic of conversation at home. “Both of my parents had steady jobs that they liked, and I was never conscious of money. I guess I was lucky in that regard. I never had to worry about it,” she says.

A mother of three, Alex says she now lives a relatively simple life in Coburg with her partner, a photographer.

Childcare has been a huge family expense over the past nine years, but will come to an end when her youngest child enters school next year.

“We’ve never had a credit card, just debit cards,” she says. “I never wanted to be in a position where I owed a huge amount of money, and felt out of my depth.

“I like the idea of not making massive purchases if you can’t afford them. My focus is on not being overstretched financially,” she says.

Alex pays herself superannuation from her small business. Her biggest debt remains her HECS loans for education, which she pays back in her tax based on her income.

“We also make sure we’ve always got a financial buffer,” she says.

Alex Kingsmill

Location: Coburg, Melbourne
Salary: $170,000 a year
Living arrangements: Lives in a home she owns with her partner and three children.

• Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.