Previous update here.
Quick Summary: Last month, my plan of attack was to replenish my emergency fund. Plan executed. I added $1250 and saved a further $400 (post -tax) to my retirement account, which means the government co-contribution of $500 applies (contributing a total of $1000). It’s a small concession – I couldn’t contribute a cent pre-tax from my business earnings due to the existing tax rules which stipulate that 90% of your income must be from self-employment if you wish to claim a tax deduction on retirement contributions. This ridiculous rule has been removed as of July 1st, so it’s no longer a concern. Savings rate hovering in the high 20’s, cash into savings. Credit card debt is up, but actually paid out monthly, so nothing to worry about. I put as much on credit as I can, provided it’s a regular purchase. I use the frequent flyer points for a flight home to see family every year.
Hustler: I did some serious side hustling in June, including a 600km round trip for work. I won’t see the income for a month or two, but it’s income nonetheless.
Tax: Being the end of the financial year in Australia, I spoke with my accountant and it seems that my tax due is likely way less than I anticipated. I’m stoked that all the extra money put aside for tax can now go toward my emergency fund. The glass half full perspective is that I didn’t earn enough to require being taxed more, and as I joke with a colleague, paying a large amount of tax on an enormous income is preferable to paying a small amount of tax on a small income.
Nevermind, there is always next year!
Savings Rate: 27.16%
Cash: $3,821 increased 49.50%
Superannuation: $38,763 up 1.97% (including $400 deposit)
Investments: $9,353 up 10.05% (market return)
Other Assets: $10,622 down 1.20%
Total Assets: $62,558 up 4.58%
Credit Cards : ($1,811) increased 119.71%
Student Loans: ($31,684) steady
Business Loan: ($13,750) reduced 1.79%
Other Liabilities: ($21,500) steady
Total Liabilities: ($68,754) increased 1.08%
Net Worth: ($6,186) increased 24.46%
As always, thanks for following along.
How did your net worth and savings rate look this month?
- 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.