Net Worth Update

Net Worth Update (March 2018)

Previous update here.

I had a relatively quiet start to the year and in February especially. This lead to lower income in March. I suppose it’s part and parcel of being your own boss and not having a regular salary!

It really struck me this month how important finishing my PhD is becoming. I’m still at least a few months out – and I know, every time I say that it seems more months have passed – but getting fully qualified essentially gives me a 25% increase in earnings potential. So find the motivation for it, I must. After 5 years working on it I’m scraping the bottom of the barrel.

On the financial side of things, cash increased just a little. Assets rose marginally. Local and international markets continued their decline and my Superannuation followed suit. To take advantage of this second consecutive down month I made a small deposit to my retirement account. The WF30 portfolio – where I keep my personal investments – gained a few percent, including some dividend income. This was pleasing given the down month on the ASX300. While the overall portfolio was up, the gain was almost entirely attributable to a recent buy that doubled in price within weeks of the fortuitously timed purchase. The rest of the portfolio was down or even. Come April 20th, I’ll have been running the portfolio for a full year.

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

Other tidbits – I found a few dollars ($3.15 to be precise) in a park, at a football match and left in a ticket machine. So far this year I’ve found $53.15. Hooray for free money!

I also had my car serviced and supplied my own motor oil, saving myself around $50 net – just one of my money savings habits regarding car ownership. You can often pick up oil on sale at your local Repco, Super Cheap Auto, Autobarn etc. or like I do, at your local drag racing store. I imagine dragsters use a lot of oil because even top shelf oils at this store are inexpensive!

Due to the lower income for the month (down ~20%) my savings rate took a hit. I still managed to throw some coins into the fortress fund and made that small deposit into Super.

Savings Rate: 18.3%

Assets:
Cash: $14,466 increased 4.0%
Superannuation: $42,491 down 0.31%
Investments: $20,337 up 3.05% (market gain)
Other Assets: $9,528 down 1.20%

Total Assets: $86,822 up 1.06%

Liabilities:
Credit Cards : ($1,851) up 47.24%
Student Loans: ($32,305) steady
Business Loan: ($11,050) reduced 2.64%
Other Liabilities: ($21,500) steady

Total Liabilities: ($66,706) increased 0.44%

Net Worth: $20,116 increased 3.16% – Stoked about my net worth crossing the $20k mark for the first time! :):):)


Rock your finances in March?

As always, thanks for following along! 

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 $55,874 p.a. or more in 2017/18.
  5. Other Liabilities consist of two loans which are interest free.

5 thoughts on “Net Worth Update (March 2018)

  1. Thank you for the detailed share! You must be so excited to finish your PhD- it’s a long time to be studying, I have major respect to anyone who does a PhD!

    1. You’re welcome GYM and nice to see you round again. Finishing the PhD will be awesome. Getting closer now and can almost taste it.
      Thanks for the kind words 🙂

  2. Hi I’m new on here, just saw you in Money.

    Just a question – how come you have a car? I live in the inner city and get to work and most places by bike or even on foot. It’s a joy not having to pay for the cost of a car, maintenance, insurance, etc. I know some who have one more for the family but if you’re single then not having one can save a lot each year.

    1. Hi David – glad to get a comment from you. I actually have a post on the joy of public transport you might like. I live within walking distance to work so that cut down on my car use dramatically but it’s still one of my biggest expenses. That said, it’s cheaper in my case to own and insure a car than it is for to use public transport and Uber for those times buses/trains are scarce (often where I live!). Factor in time saved and I’m happy to own a car. Awesome that you’re thriving without one! On average a small car (e.g. Mazda 2) in Aus costs $6000+ to run per year so you’re right, it can be a big saving.

      1. Thanks for that. Yeah, I’m in the inner city ring. 2 years ago I paid $1500 or so for a yearly ticket, but last year decided not to renew. As I can walk or ride to work, I’ve barely caught the train in the last six months! However, I might need to a bit more over winter, will see. But you can see – without getting the yearly and not having a car, my transport expenses are very low. Realistically I prob pay $200-300 a year on bike-related expenses.

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