Tuesday, 3 July 2012

Expenditure Tracker - June 2012

Item Target June 2012 Over/(Under)
Share Investments +$3,300 +$1,125 -$2,175
Offset Acct. +$1,600 +$2,811 +1,211
Personal expenditure +$1,500 +$2,841 +$1,341

Compared to previous months, June 2012 was fairly quiet in terms of asset allocation issues with the significant portion of savings from my income this month going towards my investment property offset account (which I like to think of as a fixed income security). 

The marked change however was in the decrease in my personal spending over the month.  Although the credit card bill due in June (but incurred in May) was $400 higher than the previous month, this was compensated for by the fact that I controlled my cash expenditure quite well during the month.  There is probably something to be said for the amount you can save in winter months because you do not feel like going out.   Although it is not down to a level where I am comfortable it is definetely heading in the right direction.

Next month I am expecting my personal expenditure to be through the roof.  My credit card bill is already close to $3,000 due to the fact that I pre-paid my health insurance to save hundreds of dollars.  Further I am going away on a weekend trip with some friends so I cant make up for that expenditure this month by being particularly frugal.

I did not invest in any new shares directly this month however once again I contributed 10% of my pre-tax earnings to my employee share investment plan.  In the coming month I foresee myself once again reallocating money from my fixed income investments to the share market given the fact that interest rates are decreasing (making fixed income less attractive) and the share market has had a terrible month and looks particularly cheap at the moment. 

On a cumulative basis the accounts currently stand as follows:
Item Target Jan - June 2012 Over/(Under)
Share Investments +$19,800 +$24,809 +$5,009
Offset Acct. +$9,600 -$5,995 -$15,595
Personal expenditure +$9,000 +$22,172 +$13,172

If the markets were normal I would probably try to balance my portfolio more and avoid going to heavily into one class (i.e. equities) however given the relative investment merits I think I want to be overweight in equities and underweight cash and fixed interest.  Currently my exposures to the various asset classes on a net basis (i.e. after borrowings are accounted for) are:

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