Friday, 30 December 2011

December 2011 Net Worth - $207,000 (+4%)

Assets: $561,000 (-1%)
Liabilities: $354,000 (-4%)
Net Worth: $207,000 (+4%)

The increase in net worth this month was driven by the 10% discount that I got from repaying my student loans as predicted last month. This, however, was also the factor that drove my assets lower.

My assets were affected by several factors for the month including

  1. Negative stock returns over the month. My listed equities decreased marginally over the month even though 2 dividends were paid during the month. Both of these were stocks where i subscribe to the DRP so they supported my listed equities valuations which would have been even lower without them

  2. As discussed above the repayment of my student loans in full hit my liquid cash funds

  3. In terms of movement within asset classes, I had originally planned to invest some of my liquid cash into the stock market during December however I held off on this and the market has gone down so I will be looking to move more funds into the market in January

Liabilities were affected by

  1. The decrease in my student loan balance (to $0). This means that my only liabilties currently is my loan for my investment property and my credit card debt

  2. Credit card debt increased for the month (as predicted) as I went on a bit of a shopping spree pre christmas

In January I dont foresee any big events driving the performance of my net worth as I have had in previous months (e.g. bonus payments, tax refunds, discount on repayment of student loans etc). My predictions for January are:

  1. Increase in credit card debt as several large bills fall due (especially car insurance - see my previous post on getting a good deal on car insurance)

  2. Movement of cash into equities. I think in January equity markets will continue to be fairly quiet so I'm not expecting a large increase here.

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