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%
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)
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?
- 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.