Net Worth UpdateReal Estate

Net Worth Update (July 2018)

Previous update here.

Quick Summary:

Hello again! This post is coming out a little late – more or less because July was a blur! A busy month at work and with my PhD – which is due by the end of this month. Egad! I’m excited and nervous and can’t wait to have it done. Some family from interstate also visited which was awesome.

I’ve continued thinking about simplifying my portfolio and am more convinced that’s the way I’ll head. New investments will be into the four ETF fund I’ve written about in my 3 Simple ETF Portfolio’s for Aussies post. Because I’ve got a handful of LIC’s that are mainly invested in Aussie stocks, I won’t use BetaShares A200 fund until my Australian investment weighting drops below 30%. I’ll continue to invest in the odd individual stock here and there, but probably 80% of the portfolio will end up being ETFs.

Speaking of simple investment plans, I had a conversation with my brother recently about investing for his new born son (genuinely adorable). He and his wife have settled on Vanguards High Growth ETF (VDHG). I think it’s an excellent choice. Their main priority was capital growth of 20ish years and keeping things simple – VDHG certainly does that. I’m excited for them as they now have a brokerage account with CMC and are ready to invest their first chunk of money.

On the financial side of life, I had an EOFY chat with my account. She’s been a huge source of knowledge and sensible advice which I’ve found invaluable. We talked over whether a SMSF was the best way for me to buy a commercial property for work (it’s not) and a few other tidbits.

Cash increased, and Superannuation was up slightly. The WF30 portfolio increased 2.2% for the month which was nice after a couple down months. I also added another $1k.

Credit debt increased but as always, is paid out end of month. The business loan decreased and all other debts were steady.

My savings rate as of this new FY are after tax. Being able to save anything more than 10% is a real blessing.

Savings Rate: 34.8%

Assets:
Cash: $19,382 increased 7.27%
Superannuation: $44,040 up 0.69%
Investments: $25,537 up 2.2%% (market gain + $1015 deposit)
Other Assets: $9,079 down 1.20%

Total Assets: $98,038 up 2.53%

Liabilities:
Credit Cards : ($2,173) up 23.49%
Student Loans: ($32,992) increased 2.13% due to inflation for the year
Business Loan: ($9,850) reduced 2.96%
Other Liabilities: ($21,500) steady

Total Liabilities: ($66,515) increased 1.22%

Net Worth: $31,523 increased 5.42%

What were your finances like in July? Comments are always welcome!

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 with Pocketsmith. 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 $51,957 p.a. or more in 2018/19.
  5. Other Liabilities consist of two loans which are interest free.

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