WHEN Steven McRae won a dance scholarship to the Royal Ballet at 17, the Australian was told to board a flight to London the next day. He was put up in a youth hostel for about six months, thousands of miles away from his family.
Despite being only a teenager, he immediately decided to start saving into a pension and put £5 a month into a savings account. He put it towards buying his first home just six years later.
McRae and his wife, the Royal Ballet soloist Elizabeth Harrod, bought their first property in 2009 and have traded up twice since then.
He has danced many of ballet’s most celebrated roles, including Prince Siegfried in Swan Lake, as well as having parts created specially for him, such as the Mad Hatter in Alice in Wonderland.
Next month McRae, 29, who grew up in Sydney, will be starring as Romeo in Romeo and Juliet at the Royal Opera House (ROH), as well as appearing on the opening night of The Nutcracker in December.
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The couple live in Kew, southwest London, with their 10-month-old daughter Audrey.
How much money do you have in your wallet?
I have £44, for some lunch in the ROH canteen, plus you never know when you’ll need to get a taxi home.
What credit cards do you use?
I don’t have a credit card. My wife has one we use. My father also never had a credit card. His philosophy is: “If you don’t have it, don’t spend it.” I very much believe in that.
Are you a saver or a spender?
A saver. Now we have a daughter, our priorities have changed in terms of saving, but years ago we were saving, like the rest of London, for our first property. We have cash Isas and stocks and shares Isas, and we pay into them every month by direct debit. We have also set up junior Isa accounts for our daughter.
How much did you earn last year?
Enough for my mortgage repayments. Each [dance] company has a different method of paying their dancers. At the Royal Ballet we’re on a salary.
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Have you ever been hard up?
No. My wife and I come from humble beginnings and from families that have been extremely intelligent with what money and assets they had. Neither of us ever felt like we went without. However, what my parents did for me to have the education I had, and all the dance lessons — it’s incredible. We never went on international holidays or had luxuries, but I had so much more in other ways.
Do you own a property?
A four-bedroom house in Kew [near the famous botanical gardens]. We got on the ladder with a flat in Covent Garden in 2009 when the market had bottomed out. We paid about £300,000, and over the next few years we sold and bought twice.
What was your first job?
With the Royal Ballet.
What’s been your most lucrative work?
This year at the Royal Ballet. You need to make a good living to be able to have a decent life, but if you’re pursuing a career in dance or the arts, your love of what you do must outweigh the financial gains.
Are you better off than your parents?
I honestly can’t answer that. My father, Phillip, was in drag racing; he was from a motorsport family and had his own auto electrics business for 25 years. My mother, Dianne, helped him with running that.
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Do you invest in shares?
Through my stocks and shares Isas.
What’s better for retirement — property or pension?
If you can, do both. Property in London is a great market to be in. Dancers are used to being told what to do all the time, but when it comes to your life and finances, it’s up to you. So when I joined [the Royal Ballet], I wanted to join a pension [scheme] straight away; I wanted to put money into a savings account, even if it was only £5 a month. Arriving at a hostel with nothing, I thought: “My parents managed to get me here, so it’s my responsibility to move on from that.”
Did you take time off when you had your daughter?
I had six days off when she was born. We were performing Alice in Wonderland at the time. I wasn’t going to the usual rehearsals during the day; I would come in only in the evening, warm up, and do my performance. The ballerina I worked with, Sarah Lamb, has been so supportive. We prepared as much as we could before my daughter was born.
What are you doing about childcare?
We have a nanny now; it’s the only way [given that Elizabeth’s parents live in Yorkshire]. Audrey comes in [to the ROH] occasionally. I think she will be coming in to watch very often when she’s a little bit bigger.
When did you first feel wealthy?
This year I was able to fly my parents to London to meet my daughter. I know how much my parents sacrificed for my sister [Kelly, who trained as a gymnast] and me to have the life we’re having. It was a small gesture to say thank you.
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What’s been your best investment?
My wife’s engagement ring, because getting married to her was the best thing I’ve ever done. We met at the Royal Ballet School, got together after leaving the school and have been together for more than 10 years.
The Royal Ballet is also part of an organisation called Dancers’ Career Development. It’s a fund to help dancers retrain when they want to retire. I asked to access some of that funding early on to do an Open University degree in business management and leadership. I did that part-time over nearly five years.
And the worst?
Everyone wastes time thinking about the mistakes they made. As long as you learn from them, that’s the best you can do.
What’s the most extravagant thing you have ever bought?
Last year we got a Volvo XC60. It is a family car but it’s still got a bit of a cool edge.
What’s your money weakness?
I love to drive, so sometimes I unnecessarily drive to work. You have to pay the £10.50 congestion charge [if you are registered for Autopay], £40 to park for the day and then petrol on top.
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What aspect of the tax system would you change?
Inheritance tax.
What’s your financial priority?
To set us up so we have a life that doesn’t have to be extravagant, but where we are not anxious about every single penny on a monthly basis.
Do you support any charities?
We have a direct debit to Great Ormond Street Hospital and I try to be involved in four or five charity performances a year. It’s important to give back — I was very fortunate to have a lot of people support me when I was younger, including teachers who gave me free ballet lessons.
What would you do if you won the lottery jackpot?
I would pay off my mortgage. I would help the charities I feel strongly about. And then I would travel to the many places I have danced in — usually I see only the airport, hotel, theatre and maybe a local supermarket.
What is the most important lesson you have learnt about money?
Money can take away some pressures but it does not make you happy.
Watch Steven McRae star in Romeo and Juliet at thesundaytimes.co.uk/romeo