Net Worth Update

Net Worth Update (August 2015)

Overall, Net Worth is up 9.46% for the month.

New investments were made in Super and my personal portfolio. Debts increased. Credit has an interest free period in which debts will be reduced. Cash reduced reflecting the above debts and investments.

Assets:
Cash: $11,553  (-6.91%)

Superannuation: $29,709  (+2.37%) voluntary contribution of $1000 made
Investments: $4,307 (+100.69%) with $2270.40 deposits made
Other Assets: $13,800  (-1.43%)

Total Assets: $59,369  (+3.11%)

Liabilities:
Credit Cards : ($1932) up 229.35% unexpected expense, nil interest for 55 days

Student Loans: ($30,790) steady
Other Liabilities: ($21,500) steady

Total Liabilities: ($54,222) up 2.54%

Net Worth: $5147 (+9.46%)

Notes.

  1. Cash consists of a single transaction account and specific savings accounts. I moved away from carrying cash in Q1 2015 and make 95% of my transactions electronically, for more accurate and up to date record keeping. I have a small transaction account holding around a tenth of my cash funds with the balance held in an ’emergency fund’ and a smaller account for rent savings/payments, both in modest interest bearing accounts (2-3%p.a.)
  2. Superannuation refers to the Government mandated retirement savings system in Australia and
  3. Other Assets consists of one car at market value, depreciating monthly.
  4. Student Loans consist of the HECS/HELP debt provided by the Australian Government,  indexed to inflation. The loan repayments are based on taxable income, with repayments required from from taxable incomes of $54,126p.a. or more in 2015.
  5. Other Liabilities consist of two loans which are interest free and don’t require repayment until I finish my Masters degree.

0 thoughts on “Net Worth Update (August 2015)

  1. Why did you send an extra $1000 to Superannuation? Does the Australian Government give a good return, or is it a small return like most government plans? In general I think I would invest on my own in an index mutual fund rather than send more away to some pension plan since I could make double-digit returns rather than single digit returns. Actually, given that credit cards charge like 20%, that’s where I would put the money first, after making sure I had enough cash to avoid going into more credit card debt.

    1. I suppose ‘good return’ is relative, but the Australian Government has provided a co-contribution of between $500 and $1500 for an after-tax contribution of $1000. There’s a basic analysis of the potential returns from the scheme in the second half of this post on superannuation. You make a good point on investing in your own portfolio rather than a pension type plan – I find one of the greatest risks in superannuation (and perhaps any pension plan type savings) is the potential for increases in taxes or levies (which the Aus Gov. is considering) or an increase in the age the funds can be accessed at (also being considered). Most of my ‘retirement savings’ will be in a personal portfolio rather than superannuation account for just those reasons.

      I think at the times I made most of these contributions in past years I didn’t have credit card debt (I didn’t even have a credit card til the past few years!) so perhaps it was habit but agree that paying down credit at high interest might be more attractive, depending on the level of debt, time frame and alternative returns etc. I tend to pay credit card debt out fairly quickly (i.e. $600/month) and am hoping to discard their use after creating a side-fund much like what you’ve suggested. Thanks for dropping by and taking the time to comment!

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