Previous update here.
Quick Summary: I’m writing this post from my parents house where I’m making a brief visit on my way to a friend’s wedding. The view is nostalgic and familiar, fog shrouded hills and rain that seems to yearn to fall from the belly of low clouds that slink quietly by like majestic creatures of the deep. This month I really focused on cutting back expenses, reducing debt and not spending money I don’t have. Success was met on all three counts!
After a thoughtful comment from the Small Investor, I was prompted to re-assess my cash accounts vs. credit card debts and decided to pay a portion of the debt which is starting to charge interest in excess of what my savings will earn per month. The savings account I had my emergency fund in required no withdrawals for interest to be paid, but I’ve switched commencing March 1st to one that doesn’t have such a restriction, and pays 3.00% p.a. to boot. This led to a reduction in cash, credit card debt slashed by over half, a personal debt paid off ($499) and a slight reduction on my business loan.
In February I also spent a record low of $164 on eating out…The first time it fell below $250/month since posting my goal of reducing eating out expenses last year…(what are you doing man!).
The market rally that seems to be spurred by the shift in US politics led to an increase in retirement funds – alas but another blip that’s somewhat meaningless in the short term. But I’ll take a positive month over a negative one anytime.
Overall, my net-worth increased 6.77% – although still in the red I’m delighted with the month. In March I’m going to continue my focus on keeping expenses low, paying off debt (I’ve already cut credit debt to below $1000) and then channelling funds into my emergency account aka the “Fortress Fund”. Then good god, can we start investing already!
Savings Rate: 4.64%
Cash: $8,975 decreased 23.51%
Superannuation: $35,273 up 1.46%
Investments: $0 (nil holdings)
Other Assets: $11,147 down 1.20%
Total Assets: $55,395 down 4.13%
Credit Cards : ($2,066) decreased 56.64%
Student Loans: ($31,684) steady
Business Loan: ($14,750) reduced 1.67%
Other Liabilities: ($21,500) down 2.27%
Total Liabilities: ($70,000) decreased 4.69%
Net Worth: ($14,605) increased 6.77%
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.