Previous update here.
Quick Summary: February was a quiet month at work, which allowed me to get a ton of work done on my PhD – I can almost taste the finish. Markets went down, clawed back a little ground and then finished the month breathlessly limping into March. I’m not a fan of market timing but I’ve said it before – when everyone says keep buying – is exactly when alarm bells sound in my mind. I’ve heard a number of stories this month of financial advisors telling clients to stay fully invested, or buy this dip, it’s just a correction (how the hell do they know?). The first quip might be ace advice for some people, but it’s that kind of confidence that leaves me uneasy.
My individual stock portfolio provided me a(nother) lesson on position sizing, when my largest position, Sukin skincare’s parent BWX Ltd took a 30% + fall on results below market expectation. My portfolio was down 3% for the month. I don’t really care about short-term price movements but I realised if I keep positions this big and make a large mistake (which I will at some point I’m certain), the risk of a meaningful loss is too high.
Cash decreased as I diverted a little excess savings into investments Super wriggled down slightly. Debts steady or reduced.
Hit a new record savings rate for good measure. Though my income earned in Feb was so low, I don’t think I’ll be savings much in March. Consistency wins out in the long run though.
For some further good feels, it was great to see fellow Aussie FIRE blogger Pat the Shuffler get featured by ABC! It seems the community here is really growing and that the word gets on FIRE to the public is awesome.
Ok – lets check out the numbers…I’ll bite my tongue – no dad jokes this month ;).
Savings Rate: 51.42%
Cash: $13,909 decreased 6.41%
Superannuation: $42,623 down 0.45%
Investments: $19,735 up 14.35% (market loss + $2000 deposit)
Other Assets: $9,644 down 1.20%
Total Assets: $85,912 up 1.43%
Credit Cards : ($1,257) down 61.28%
Student Loans: ($32,305) steady
Business Loan: ($11,650) reduced 2.51%
Other Liabilities: ($21,500) steady
Total Liabilities: ($66,412) decreased 3.33%
Net Worth: $19,500 increased 21.91%
Did you pile up cash, pay down debt or do something different in Feb?
As always, thanks 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 $55,874 p.a. or more in 2017/18.
- Other Liabilities consist of two loans which are interest free.