Previous update here.
Tons happened in June, locally and abroad. Brexit appears to have unsettled investors, most likely on a temporary basis. In Australia we had our Federal election, which as I write (July 2) seems the Government will be retained, albeit with a smaller majority or perhaps a hung parliament. I submitted my Masters thesis (finally!) and just need to wait for confirmation from the faculty that it’s passed before I can start seeking employment. This new chapter is very exciting; for a start I love my work and financially I’ll move from a student income to a decent wage over the next few years. The transition will require careful budgeting as I may have a month or two of unemployment, or at the very least reduced income.
To celebrate and unwind, I travelled to Austria where I’m currently travelling by train to Salzburg. It’s my first major international vacation and so far, a wonderful experience. The trip took a chunk of cash but it’s well worth it, a time I’ll never forget.
Quick Summary: Cash increased as did credit card debt. The two are related in that I made a fortnight’s worth of expenses on credit to draw enough money out in cash for the trip to Europe. There have been issues at work over the past two months getting contracts paid on time and as in May, I faced a delay for my June income – a portion of my salary last month won’t arrive in my account until mid July. This delay is no big issue, however it means I’ll divert a substantial amount of next months income to debt repayment.
Superannuation and managed investments were hit by the Brexit turmoil, but even as we’ve edged over to July, both recovered materially. My student loan had interest for 2015/16 applied (it’s actually interest free, but indexed inflation) and other liabilities increased marginally.
Overall, net worth was down around $2,000 and I suspect in the coming months may turn negative as I search for full time work. I’ll be unsalaried from mid August, until I find employment. Like I said, I’m really excited to start work in the next couple months. Once my income is stable, it should be adequate to completely pay down my debts (personal, student loans and any credit card debts) and start reinforcing my emergency fund over the next year. I’ve also been giving some thought to something similar to hey, it’s just money‘s financial sanity fund and amber tree leaves medium term savings account to further buffer semi-foreseeable expenses. Both of these are enjoyable posts with some really good ideas if you’re considering something similar!
Cash: $8,289 increased 8.40%
Superannuation: $32,254 decreasing 1.45%
Investments: $4,492 up 2.92% (net deposits $200).
Other Assets: $12,278 down 1.20%
Total Assets: $57,313 up 0.26%
Credit Cards : ($1,492) increased 2456.12%
Student Loans: ($31,539) indexed to inflation, up 2.43% YOY
Other Liabilities: ($21,999) up 1.06%
Total Liabilities: ($55,030) increased 4.59%
Net Worth: $2,284 down 49.82%
- Cash consists of online 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.).
- Superannuation is the Government mandated retirement savings system in Australia
- Other Assets consists of one car at market value, depreciating monthly.
- 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 taxable incomes of $54,126p.a. or more in 2015.
- Other Liabilities consist of two loans which are interest free and don’t require repayment until I finish my Masters degree.