Monday, 1 July 2013

June 2013 Net Worth: $368,000 (-0.8%)

Value% Change
Net worth$368,000-0.8%

This completes the second year of my net worth tracking series and I will post a year on year analysis as a summary of how I have been going since I started tracking my net worth shortly.  However as per usual this post will focus on how I performed for the month.

I am disappointed to say that, as you can see above, this is the first month in which I have recorded a negative net worth performance since I started tracking my performance 24 months ago.  This was primarily driven by an abysmal month on the share market combined with an inability to save a great deal as I had a rather big credit card bill to pay.

I have had bad months before on the share market and these have not caused me to have a negative overall performance for one major reason - previously my share portfolio was of a size that even if there was a terrible month, regular savings from my wage could outweigh this.  Unsurprisingly as my wealth has grown, the movements in the share market can outweigh any amounts that I can actually save from my monthly wage.  I knew this was going to happen at some point, so am not overly disappointed to see it.

This month was a confluence of negative factors affecting my net worth including

  • A very bad month on the share market
    • At one point close to the end of the month my portfolio was down 10%.  Luckily the performance picked up in the last few days and I ended the month with my portfolio down ~7% for the month
    • This drove my entire result and outweighed my contributions to my employee share plan as well as my superannuation contributions
    • Note that the share market significantly negatively impacted my superannuation as well.  My employers monthly contribution was not enough to outweigh the downturn in the market
    • The abysmal performance on the share market is creating opportunities though and I am definitely looking to buy into the market (I went a little early with my last few purchases)
  • Although my credit card bill was much lower the requirement to pay off the last one used a lot of my free cash
    • I will post about this in my expenditure tracker but I was unable to save or invest much from my wage this month as I was trying to pay down my credit card bill from last month
    • Next month is a much lower (although still higher than I would like) bill so I should be able to invest a lot more
Last month I was targeting a net worth of $375,000 for the month and I missed this by a long shot.  I would need a lot of things to go right this month to hit that level again and I would be happy if I got to $373,000 for July 2013.  I am going to be investing in the share market while it is depressed.  I do not know if it is going to continue to go down but if it does I will be investing all the way down. 

You May Also Be Interested In:
2013 Net Worth Performance Review (to come)

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