Friday, 1 June 2012

May 2012 net worth - $240,000 (+1%)

Assets: $594,000 (+0.6%)
Liabilities: $354,000 (+0.1%)
Net worth: $240,000 (+1%)

The relatively small increase this month was rather frustrating as I had kept my personal expenditure in check (the last week of the month proved to be very expensive though) and the credit card repayments for the month were also small.  The small increase was driven by a few major factors this month including
  • A significant fall in the share market over the month which caused my investment portfolio to decrease in value
  • The above was offset by the fact that I was able to take advantage of the share price weakness in the middle of the month to reallocate a large portion of my funds from my home loan offset account into the share market and make some good short term gains (I also made some losses off these investments)
  • A continued investment in my employee share investment plan and automatic allocation to my superannuation plan by my employer (I have started to post on superannuation if you would like to see how the system works in Australia)
  • My credit card bill at the end of the month was slightly higher than I would have liked it to be and this came about due to several expensive dinners and outings I had in the month
Looking back at my predictions from my April 2012 net worth post most of the things I had predicted came to fruition.  It was just disappointing that despite the level of discipline I was able to show this month the increase in net worth was relatively minor. 

One of the big things I need to work out how to do is to accelerate the growth in my net worth.  There is only so much you can do saving (for me saving ~3,000 to $4,500 per month from my wage is about was good as I can do) so I need to work out a way to generate other income.  I have mentioned before that I would like to start a small business to generate some side income however thus far no ideas worth pursuing have come to mind.

My prediction for June are much the same as May.  Increases to my net worth will be driven by the share market and my ability to control expenditure.  As June represents the end of the financial year and tax year in Australia for individuals I may also have some changes in my net worth related to tax planning.  June will also represent 12 months since I first posted my net worth so I will do an annual summary of my performance.

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