Previous update here.
Quick Summary: December flew past as I kept up hours at work as best I could. The biggest change that occurred was moving house into a small studio apartment closer to work. This cuts my commute by 2 whole hours each and every day, with 10 extra hours each week I can use for producing income, completing my PhD or recreation. The downside is that my rent essentially doubled, but that’s compared to renting a single room in a 3br house vs. having an apartment to myself.
Cash increased significantly, but as I pay myself a gross salary I need to deduct a certain amount for tax which goes into a separate account I don’t withdraw from. Come tax time, my accountant will inform me how much tax I need to pay the Australian Tax Office. I estimate the deduction on a monthly basis so I should easily have enough to cover my taxes when due. By definition then, a component of my cash isn’t a genuine asset although it produces interest in the meantime, and perhaps I shouldn’t include it here (along with including my business loan as a liability). Credit card debt increased substantially, mainly due to moving expenses and buying some furniture (did I mention I moved!) I’ll be paying this down quickly over the next couple months.
Cash: $13,090 increased 40.37%
Superannuation: $34,864 up 2.49%
Investments: $0 (nil holdings)
Other Assets: $11,420 down 1.20%
Total Assets: $59,373 up 8.15%
Credit Cards : ($2,399) increased 1001.32%
Student Loans: ($31,539) steady
Other Liabilities: ($21,999) steady
Total Liabilities: ($55,937) increased 4.06%
Net Worth: $3,436 increased 200.49%
As always, thank you for following along!
- 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.