Net Worth UpdatePersonal Finance

Net Worth Update (July 2016)

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Previous update here.

The headline news in July was that I sold out of my sole investment fund, Novaport Capital’s Smaller Companies Fund (Wholesale). It’s a small cap fund I still like, but I wanted to cash-out and add the money to my emergency fund for the upcoming months. Later in August I’ll no longer be on scholarship and my employment at the University will be modest – just a few teaching and unit responsibilities. This will reduce my income materially. I’m intending to start full-time work soon. It’s exciting that after 8 years of Uni I’ll finally be able to utilise everything I’ve learned in the field on a professional basis. I also lodged my tax for 2015/16 which is estimated to return approx $2800 sometime in August.

Quick Summary: As noted, investments were withdrawn and cash increased correspondingly. My retirement fund had a good month, with distributions from the constituent funds in July ($1272.75 or a return of 4.98% on the fund’s assets at June 30th) and a slight market rally which is persisting, at least for now. Credit card debt increased slightly although I’ll use a portion of my tax return to reduce this. One of my goals for 2016 was to eliminate credit card debt and no longer use them, a goal I’ve had only partial success with to date. Overall net worth was down marginally relative to June. I’m looking forward to the rest of the year, and the potential for a more secure income!

Assets:
Cash: $12,093 increased 45.88%
Superannuation: $33,369 increased 3.46%
Investments: $0 (withdrawn and added to cash)
Other Assets: $12,130 down 1.20%

Total Assets: $57,592 up 0.49%

Liabilities:
Credit Cards : ($1,796)  increased 20.38%
Student Loans: ($31,539) steady
Other Liabilities: ($21,999) steady

Total Liabilities: ($55,334) increased 0.55%

Net Worth: $2,258 down 1.11%

What was your July like financially?

As always, thank you for following along!

Notes.

  1. 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.).
  2. Superannuation is the Government mandated retirement savings system in Australia
  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 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.

4 thoughts on “Net Worth Update (July 2016)

  1. 8 years! You must be excited to work full time? It seems like you had a good run in July. 🙂 Your assets increased and even if your credit card debt went up, I honestly don’t think it’s bad. Plus you’re on top of it, so I think you’ll handle that well. Good job, keep it up and good luck!

    1. Hey J! I’m really excited to start work yep. It feels a little like I’m stepping of the platform onto a train that’s not stopping anytime soon! Thanks for sending the good vibes my way 🙂

  2. 8 years is an extremely long time, wow! I bet you can’t wait to get out there. Looks like a decent month for your net worth, practically the same from last month. You’re doing well, can’t wait to see what happens when you get a full time job.

    Tristan

    1. Thanks Tristan – I’m looking forward to it too. Still debating whether to include any business loans in my net worth calculation (I think I will) so I’m going to go negative for a while, but it will improve a year or two from now.

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