Monday, 2 July 2012

June 2012 net worth - $244,000 (+1%)

Value % Change
Assets $599,000 +0.7%
Liabilities $355,000 +0.3%
Net worth $244,000 +1%

Net worth: $244,000 (+1%)

As mentioned on Friday this post marks the one year anniversary of this blog and one year since I started tracking my net worth (see my first net worth post from June 2011).  I will do a seperate post on the changes over the year but this post will be dedicated to a month on month comparison (as my previous posts have)

This month again had a relatively samll increase in my net worth which was rather disappointing given the fact that I was able to keep my personal expenditure in control this month (see my post tomorrow for details) and I was able to contribute a good amount to my home loan offset account.  The big moves this month were caused by

  • A significant fall in the value of my investments in the stock market.  Returns for the month were -5% which impacted the result significantly
  • A factor which offset the above the stock market decline was the consolidation of my superannuation accounts which I have posted about before.  I recieved significantly more than I thought I would when exiting the two accounts which I closed down. 
  • The biggest negative was my credit card balance.  Although I did manage to keep my regular expenditure for the month under control, as I posted about before I saved me more than $500 to prepay my health insurance for the year (but conversely was a $1,600 expense which I had not accounted for)
  • The continued investment in my employee share investment plan means that I was still investing in the market even though I did not make any active investments in the month as I have been focussed on rebalancing my investment portfolio

Looking back at my May 2012 net worth post I predicted that my returns would be driven primarily by the stock market and my ability to control my personal expenditure and this has definetely been the case.  I also mentioned that I would be looking to accelerate my net worth growth by starting a small business - I have put more effort into this recently and plans are progressing well. 

My predictions for July are actually quite bleak.  I will have a credit card bill that will take half my pay (because I pre-paid my health care costs for the 2013 financial year) and I am going on a weekend holiday which realistically removes my hopes of being particularly frugal for the month.  However I am hoping to launch my small side business during June so hopefully this will start to generate some revenue.  August and September have more 'one off' type events such as the realisation of my employee share investment plan and hopefully a tax return which I can use to reinvest in the market.

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