Value | % Change | |
---|---|---|
Assets | $672,000 | +8.3% |
Liabilities | $354,000 | 0.1% |
Net worth | $319,000 | +19.0% |
My net worth performance this month was best in absolute terms since I have started tracking the increases. In % increase terms it is my second best performance however it is from a much higher base which is why the % increase was not as good as the absolute performance. As highlighted in a mid-month post there were several things which drove this result including
- Getting my annual bonus
- After leaving investment banking my bonus was much lower than in previous years as was to be expected. However I still work in finance so the bonuses are still pretty good and this contributed a significant amount to the uplift in my net worth for the month
- Also, as I am earning less and I no longer have a HECS liability the weighted average tax rate I paid on this bonus decreased significantly
- A component of this bonus is deferred compensation. Where I have been allocated these shares I have fully valued them however there is another component I have not valued as I have no way of checking how this value moves month to month
- Receiving my tax refund
- I have been talking about doing my taxes for several months in my net worth and expenditure tracker posts however I finally got down to it this month and received significantly more than I was expecting back on tax (approx $20,000)
- I realised some of the gains on my share portfolio
- This actually had a negative impact on my net worth
- I track the share price movements through my excel file on a month to month basis however there were significant transaction costs associated with selling my employee share plan schemes. For future periods I have found ways of avoiding these costs
- My personal expenditure was much higher than usual however this got lost in the noise
- I did not control my expenditure as well as I could have this month however because of the big bulky increases mentioned above, a lot of this effect was lost
For December 2012 I actually forecast a decrease in my net worth
I had pre-committed a lot of the amount I received for my bonus so the effects of this increase are going to be quite temporary (which is fairly disappointing because I was very excited to see my net worth go through $300,000 for the first time). Things I had committed to included:
- An overseas holiday I am taking in a few weeks. I'm guessing this will cost me about $6,000 including accommodation, spending (I really have to buy new suits while I'm overseas) and entertainment. Note that I paid for the flights several months ago
- Christmas presents: There really is no way of getting around this and I wouldn't want to. I really enjoy giving Christmas gifts however it does affect the bottom line. I am budgeting for about $1,000 on gifts.
- A sports car. This I mentioned was one of my goals for the year. Although I have not bought it yet I know what I want to get and how much I want to spend. I am planning on spending ~$25,000 on the new car and selling my existing car for about $12,000 so will be out of pocket an extra $13,000
My goal for December 2012 is to keep my net worth above the $300,000 mark and I should be able to manage this given I will still be earning during this time.
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