Wednesday, 23 January 2013

December 2012 Net Worth: $334,000 (+4.7%)

As I pointed out in my 2013 Financial Goals post, I was away for the last past of 2012 and the first part of 2013 with no access to the Internet (for all considering going to India - wi-fi access is NOT freely available).  As a result I am rather delayed in my December 2012 net worth post.  The date at which it is accurate is also not 31 December 2012 but rather 14 January 2013 because this was the first day I was able to get accurate data.

Value% Change
Net worth$334,000+4.7%

My net worth performance for December 2012 was actually very pleasing because, although it does not account for all of my expenditure on my overseas trip, it includes a large portion of it.  The surprising fact is that, because I took a vaccination in a country where goods and services and living are so much cheaper than Australia, the amount I spent on the trip was not vastly dissimilar to the amount I would have spent partying / going out and generally living life at home.

In my November 2012 net worth forecast I had actually forecast a decrease in my net worth due to the holiday, Christmas presents and the purchase of my sports car.  If I had purchased my sports car I think I would have had close to a flat performance however I delayed this purchase while I travelled.  As outlined in my 2013 financial goals - I am no longer sure if I want to purchase that car or put the money towards moving out of home.

There were several big items this month which significantly impacted my net worth performance.  These included
  • Included restricted cash from my bonus as part of the net worth calculation
    • Last month I mentioned that I had no way of valuing this.  Since then I have received statements which make this value clear (and I can also see how it moves).  This amount is invested in the stock market so I have included it as part of my equities investments
  • The superannuation component of my bonus was credited to my super account
    • This happened on a month delay.  I did not expect the increase to be as big as it was so it was quite a pleasant surprise when the amount was credited to my account
  • Continued investment in my employee share plan
    • The automatic investment every month in shares is a real benefit to my net worth and I am coming around to the idea that 'automatic savings' are a really good thing - although you will not keep track of it as closely you will never miss an investment due to fear or time issues
    • This amount also increased with the increase in my wage in December
This post is coming close to the end of January so I have a pretty good idea of how I am going to go in January 2013

I am predicting a relatively flat January 2013.  I have saved a little and invested a little but will largely be paying off my credit card and also the foreign currency component of my trip to India (which for reasons which I wont go into I did not have to fund upfront).  Other things which will affect my net worth for January include
  • Increased personal expenditures:  I found that I am doing the holiday season catch ups quite late and so my expenses are increasing as a result
  • A weekend holiday away:  Although I just got back from an overseas holiday I have booked a weekend trip away with my girlfriend which will have an impact
  • Strong share market returns:  The share market has started extremely strongly in 2013 and this is driving much of my net worth gains.  
My goal for January 2013 is to get my net worth above $336,000.  I know this is a rather small increase but for this first month I am not aiming too high.

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