Monday, 1 October 2012

September 2012 Net Worth: $260,000 (+2.0%)

Value% Change
Net worth$260,000+2%

As with my August 2012 Net Worth, I am reasonably happy with the absolute performance of my net worth statistics over the month however given that I keep an eye on what it is doing during them month, it was disappointing to see the value of my share investments rise and then fall so much over the month.  The announcement of QE3 gave it a real bump over the month (see here for my post on what QE3 is) however the markets pulled back significantly since this point.

This month was all about keeping the ship steady and waiting for some investments to pay off however this did not turn out as I was expected
  • I held onto my ESIP shares whereas before I had planned to sell them. 
    • The shares shot through the roof on the announcement of QE3 (which is when I should have sold them) however I kept holding onto them.  The decision to hold is still showing significant benefits.
  • I had signed up for the FKP rights issue however this did not turn out as expected
    • I have posted about how the company screwed retail shareholders (like me) by allocating 2/3 of the overallocation to the underwriter so that they got the free profit
    • Also I was meant to get allocated my shares a few days before the end of the month but it looks like Interactive Brokers takes much longer than other brokers to do this (I will do a post about this shortly)
For those who read this series from month to month there are several items which are pretty consistent from month to month including
  • My personal expenditure
    • While it was not as low as I target from month to month I have managed to reduce the amount it is over by a significant amount. 
    • I am starting to control it but it is still not yet as good as it could be.  See my expenditure tracker for September 2012 for more details
  • Contributions to my employee share plan
    • As mentioned above I have not yet sold the last lot shares that vested
    • An issue that struck me was that I have not been accounting for the tax that is payable every time I sell shares.  I will build this into my net worth model for future periods
    • Also I have been over-estimating my month to month contributions.  It is $100 lower per month than I previously thought
  • My home loan offset account
    • I withdrew a significant amount of cash to allocate it to the FKP rights issue which turned out to be a bad idea
    • I contributed all my savings from September 2012 to this account to get it back to a reasonable level
    • I shall be putting the refunds from the rights issue back into this account
For October 2012 I plan to do the following
  1. Start an account to put money aside for my overseas holiday so that when I do go in December I have a pre-planned budget and do not over-spend (note that I do not plan on being particularly cheap when I go away so I'm going to have to save a fair bit)
  2. I should (finally) get around to doing my taxes for the FY2012 year - this should give me a nice bump as I receive the cash from my tax return.  I find that actually making it to the accountant is the difficult part
  3. I do not have any major capital expenditure due for the month but as previously mentioned these things tend to come out of the blue
You May Also Be Interested In
Net Worth - All Posts
August 2012 Net Worth
FKP's Terrible Corporate Governance Screws Retail Shareholders
Rights Issues: Reading the Fine Print Can Make You Thousands

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