Net Worth Update

Net Worth Update (May 2017)

Previous update here.

May down. It was a good month in which assets increased and debts reduced. What I need to focus on is sticking to the plan. i.e. replenish my fortress fund (emergency account) – there is something slightly discomforting about writing a blog in which all your financial laundry can be aired. But there is no point you following this blog if it glosses over things. So…here is the truth – I invested some of my savings. After screening dozens of investment ideas over the past few months, making a few small purchases is the only real way to teach myself and practice what I’ve learned. If it’s a mistake, it’s one I can live with. I won’t be investing in additional stocks again until the fortress fund is adequate. It’s that simple. Over the next 7 months I really need to focus on finishing my PhD, which is another reason not to be looking at new investment ideas and concentrating on simply saving. I will be updating the portfolio page in July since creating a decent spreadsheet in Numbers to track the portfolio – yes it was a form of procrastination (much needed).

Quick Summary: Savings rate approaching 30 per cent, with $200 going into Super and cash into savings.  The contribution to my retirement account will help make me eligible for a $500 bonus from the Government, provided I contribute a total of $1000 before June 30. This will be the last year I can take advantage of the co-contribution, as the $500 maximum is only provided for taxable incomes under $36,021 (scaling down to $0 at a maximum taxable income of $51,021). The cash decrease below is exaggerated because excluded now is the money put aside as a tax provision. This won’t be paid until around September but it shouldn’t be factored it into the assets.

I’m considering at some point ceasing reporting the dollar amounts below and only include the savings rate and percentage increase in net worth (the figures will still be tracked in a spreadsheet). 

Savings Rate: 29.9%

Assets:
Cash: $2,556 decreased 62.01%
Superannuation: $38,013 up 0.77%
Investments: $8,498 (mostly deposit + small unrealised capital gain)
Other Assets: $10,751 down 1.20%

Total Assets: $59,818 up 3.87% (taking into account the exclusion of tax provision)

Liabilities:
Credit Cards : ($824)  decreased 42.74%
Student Loans: ($31,684) steady
Business Loan: ($14,000) reduced 1.75%
Other Liabilities: ($21,500) steady

Total Liabilities: ($68,008) decreased 1.26%

Net Worth: ($8,190) increased 27.42%
(without the exclusion of tax provision, i.e. on a comparable basis, net worth was up about $500 for the month)

As always, thanks for following along. I really enjoy reading your comments and interacting with new and regular readers alike – it’s part of what makes blogging fun.

How did your net worth and savings rate look this month?

May Net Worth

 

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 $54,869p.a. or more in 2016/17.
  5. Other Liabilities consist of two loans which are interest free.

10 thoughts on “Net Worth Update (May 2017)

  1. I agree that having a go is the best way to figure things out, as long as you are doing it with amounts you can afford to lose. I think it’s funny that’s you’ve chosen investing a form of procrastination!

    Adventures with Poopsie recently discussed no longer showing dollar amounts or spending reports – they’ll be moving to percentages only as well.

    Now stop reading my comment and get to you PhD!

    1. Thanks for pointing out the Adventures w Poopsie post – I’m going to check it out 🙂

      You’re exactly right about it being OK to lose what’s invested. It won’t be catastrophic but I wouldn’t enjoy that if it occurred. More PhD to come 😛

  2. “making a few small purchases is the only real way to teach myself and practice what I’ve learned. If it’s a mistake, it’s one I can live with.” – thanks for writing this! I can relate too well with this. I still really struggle with making regular investments but I figured the more I delay it, the more opportunity I lose. This is the same thing I tell myself – that I can live with it, if they turn out to be mistakes, because I’ve done what I needed to do (research) before I actually making investments.

    May seemed to have treated you well. That graph is looking better each month! Good luck with your PhD and I hope the coming months will be even better.

    P.S.
    I already signed up with ING before I read your post. I wasn’t planning to but my boyfriend had a code, too. Haha!

    1. I hear you J. I figure I need to chalk up a track record, if I lag the market over say 5 years, I’ll become an index investor. I think if you’ve done your research, can afford to invest then why not right (maybe don’t follow my example in that regard! I could have built my emergency fund up more first).

      Thanks for the well wishes on the PhD, I’m hoping it’s out by 2018. And I am glad you could get the bonus through your boyfriend, I think that means more cash between the two of you (so many Totoro snacks!!)

  3. Making small investments and learning from your mistakes is the only way to go. Make sure that is is money you don’t need (playmoney) or that you consider an investment in yourself.

    I’m also just starting with everything so I’m going through the same steps!

    1. Thanks for dropping by and commenting. Completely agree it’s good to learn from mistakes and that equity investments shouldn’t be done with money that is essential. Good luck just starting out!

  4. I like reading that you’re going to be sticking to your plan – that’s the hardest part of having good finances. It’s hard changing the mindset, harder coming up with a plan and hardest to stick with it for many years 🙂

    Like you, we also think small investments are the way to go – we’ve learned a lot in our short time of investing and it’s a good thing we’re only ‘playing’ and learning with small investments rather than $10,000s. Looking forward to seeing what the portfolio page looks like.

    Congrats on the good savings rate, always a win to have lots more cash to put towards whatever you want to.

    I’m a happy reader with whatever you want to do with your blog or share the stats. If it takes a lot of effort, or you don’t want to disclose certain things, then that’s totally fine 🙂

    Mr DDU

    1. Thanks Mr DDU – it is good to learn early. Learning about finance and investing is something you’re never to young to do. Still not sure about what I’ll publish, the effort is no hassle as I track those figures just for good practice. I’m sure I’ll come to some kind of happy medium.

      Thanks for commenting !

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