IN 1976, Steve Wozniak took a year off university to earn some money and set
up Apple Computer with his friend Steve Jobs.
He didn’t make it back to college until 1981, by which time he was a
multimillionaire and so well known he had to graduate under the name Rocky
Raccoon Clark.
Born in San Jose, California, Wozniak had an aptitude for electronics from an
early age. He attended several colleges before graduating from Berkeley in
1983.
Wozniak returned to Apple after graduation and stayed with the company until
1986, when he left to fulfil his lifelong dream of becoming a high-school
teacher. Since then Wozniak has been involved in several electronics
ventures and has also written a book, I, Woz, which tells how two
cash-strapped twenty-somethings came up with a product that changed the
world.
He is also planning a trip to the South Pole with former astronaut Buzz
Aldrin, on which they will compare normal and low-emission vehicles.
When not travelling, giving talks and promoting his book, Wozniak, 56, lives
alone in Los Gatos, California, with his four dogs. Twice married, he has
three children from his second marriage: Jesse, 24, Sara, 22, and Gary, 19.
How much cash do you carry?
I’ve got about $20,000 (£10,670) on me at the moment, which is about the
usual. Cash has always appealed to me more as a means of payment than cards.
Do you have any credit cards?
I do. I came to credit cards quite late in life, but I use them quite a lot
now, although I never allow any debts to build up and view them as a way to
get a temporary, interest-free loan.
My favourite card is my new so-called “black” one from American Express,
mainly because I’m doing so much travelling at the moment and the benefits
include free companion tickets and access to airport lounges.
The only problem is that it’s made of metal, so it sets off all the airport
security machines. I have a bit of fun with that.
Are you a saver or a spender?
I would say I’m a spender by nature. Before starting Apple, I would spend
pretty much whatever I had in my pocket, and I never had any savings. I have
savings now, of course, but I still enjoy spending on new technology and
gadgets.
How much did you earn last year?
One of my requests when I left Apple was that I be made an honorary employee
for life, for which I earned $23,000 last year. I don’t actually do any work
for the company as such, although I suppose I do promote Apple in some of my
other work. On top of that, I have no idea how much I made last year — you’d
have to ask my accountant.
Have you ever been really hard up?
No, not really. I had to take a year out to earn money before going to college
and again before my final year, but I never found it hard to get a job
because even then my knowledge of electronics was quite advanced.
What is the most lucrative work you have ever done? Did you use the
fee for something special?
I suppose that would have to be starting Apple in 1976. We incorporated it in
1977 and then listed it on the stock exchange in 1980.
I’m not sure how much I made out of that — it might have been $60m, but it
could just as easily have been $120m.
I’m an engineer, not a money person, but I do remember using some of the
proceeds from selling my Apple stock to buy a house in Scots Valley,
California.
Do you own a property now?
Yes. I sold the Scots Valley house in the 1980s and it was destroyed in an
earthquake in 1989. I now just own my seven-bedroom home in Los Gatos. I’ve
never really had any investment properties, but I did own two homes in Los
Gatos until quite recently. I eventually sold the second one two years ago
after all my kids had grown up.
Do you invest in shares?
I do, but I don’t know which ones because I have an accountant and a broker to
look after that sort of thing for me. I’m not really someone who wants to
track things like that.
Do you have a pension or other retirement plan?
I don’t think so.
Do you believe pensions are a good thing?
I approve of any enforced savings plan in general. It’s just not something
that really applies to me.
What has been your worst investment?
In the very early days of plasma televisions I bought four — at $12,000 each —
in Tokyo. Unfortunately, the pictures on them were horrible. I ended up
giving them away.
And your best?
Probably Apple stock. There have been times when I’ve decided to buy some
shares and they have ended up doubling, although I wouldn’t say I was a big
Apple owner anymore.
Do you manage your own financial affairs?
No, my accountant and broker take care of most of my affairs. I’ve been with
both of them for years so I trust them to act in my interests.
What aspect of the US taxation system would you change?
I think that the current tax system is unfair because it is based on the
phoney concept of earnings rather than assets. I would like to see all
assets taxed instead, although I think it would save everyone a lot of time
and energy if the government just deflated the economy by 1 per cent a year
by printing more money. That will never happen, though.
What is your financial priority?
I don’t really have one but I suppose it would just be to take care of my
kids, all of whom are at college or working now.
Do you have a money weakness?
I have a bit of a weakness for Segways, which are two-wheeled scooter-type
devices that follow the movements of your body when you lean forwards and
backwards.
They are powered by electricity and cost about $5,000 and I think I now have
about 13. They’re a great way to travel short distances and I also play
competitive Segway polo — in fact, I was a member of the team that won the
last world championships.
My other main money weakness is probably cars, which I like to change fairly
regularly. At the moment, I mainly drive a Toyota Prius, which is a hybrid
car. I love the fact that I can park pretty much anywhere in San Jose for
free because of the anti-pollution measures.
My other car is a Hummer, but I only really use that when I need to transport
lots of stuff.
What is the most extravagant thing you have ever bought?
Last year I bought a friend of mine a beautiful diamond ring that cost
$200,000. It wasn’t an engagement ring, but I suppose it was the step below
that.
Do you play the lottery? What would you do if you won?
I don’t think I’ve ever played the lottery, but if I did win any money on it I
would give it to charity, probably to the Children’s Discovery Museum in San
Jose, California.
What is the most important lesson you have learnt about money?
That the small things add up, and that you should never lie about it. It’s
also a good idea to avoid making it look like you’re taking advantage of
someone for money.
