Previous update here.
Quick Summary: I’m pulling the band-aid off! I’ve excluded the business loan from these Net Worth Updates mainly because I saw it as a business liability (and maybe, if I’m honest, because it would smash my net worth figure). Ultimately though if affects my net worth. What’s the point of examining numbers if they aren’t accurate. I took the loan in October 2016, and you’ll see it reported from here on in.
January income was decent, and I continue to plough the field for work. I had a couple unexpected expenses in January. A second trip to the dentist for a chipped molar (don’t ask) and repairs to my car claimed under insurance (also don’t ask). Credit cards were subsequently exercised, which dragged my cash into what seems to be the black hole neighbouring my bank account.
No super contributions were made (due to ridiculous policy on superannuation and self-employment, thankfully to be abolished later this year).
I’ve been learning how to work my craft and run a business from a mentor and friend, who I meet most weekends (a 6-10km run followed by coffee in which we talk about work, business and life more generally). It’s one of the most enjoyable and valuable elements of my week, and which I am absolutely grateful for. My focus going forward aside from work (and exercising regularly, which I love) is to finish my PhD. This will provide me a 33% increase in income and should make finding work in a sustained way simpler. My aim is to get it done by
Feb 2017 Feb 2018.
Savings Rate: 4.64%
Cash: $11,734 decreased 10.36%
Superannuation: $34,766 down 0.28%
Investments: $0 (nil holdings)
Other Assets: $11,283 down 1.20%
Total Assets: $57,783 down 2.68%
Credit Cards : ($4,764) increased 98.57%
Student Loans: ($31,684) up 0.46% (indexed for the year by the ATO)
Business Loan: ($15,000) NA
Other Liabilities: ($21,999) steady
Total Liabilities: ($73,447) increased 3.54%*
Net Worth: ($15,665) decreased 35.36%
*Business loan reported for first time. Rather than go back and update entries since October, I’ve simply corrected the numbers above and the chart below.
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 $54,869p.a. or more in 2016/17.
- Other Liabilities consist of two loans which are interest free.