Monday, 2 December 2013

November 2013 Net Worth: $457,000 (+10.2%)

Value% Change
Net worth$457,000+10.2%

My strong net worth performance continues to surpass my expectations.  They are driven by a share market that seems to have no bounds as well as better than expected performance in other areas.  As mentioned last month I had hoped to get to $435,000 this month and to $440,000 by the end of the year.  As you can see above I did much better than this which was entirely due to my bonus being announced and paid during the month.

My bonus was (for the first time since I started working), better than expected.  It's not that I got paid the most I ever have - I'm still not even close to what I got paid as an investment banking analyst - but rather I was expecting a number that was 5 - 6% lower than I actually received. Part of my bonus is deferred and invested in the stock of the company that I work for and I can't touch this for several years.  I include this at the full face value as I don't intend on leaving this company any time soon - if I do leave I would forfeit a reasonably large sum of money.

This month actually have many moving factors which I have outlined below (both positive and negative).

Positive factors

  1. The payment of my bonus
    • As outlined above my bonus got paid this month
    • The cash amount I actually received was only about 40% of the headline number due to tax as well as the deferred component of my bonus
    • With this bonus I saved most into my offset savings account, I put a bit into my expenditure smoothing account for Christmas presents and I also kept aside $500 for myself to buy something 'special' although I haven't worked out what that is yet
    • A more detailed outline of this split will be detailed in my expenditure tracker tomorrow
  2. A continued strong performance in the share market
    • The share market continues to perform positively and although this month didn't have a crazy jump like the past few months it was still driving strong performance
    • I also continued to save into my employee savings plan which will vest in a few months time.  I actually haven't sold out of the last plan yet so I am more over-weight in my company's stock than I would like to be
    • The strong share market performance has also been driving my superannuation balances
Negative factors
  1. I spent far more than I anticipated
    • During the month I went on holiday overseas and it was far more expensive than I thought it would be
    • I had smoothed my expenditure when it came to my airline tickets and accommodation however meals and activities cost me far more than I thought they would
    • As a result my (relatively high) credit card balance from the previous month remained flat
I continued to be surprised at how I am performing in terms of my net worth.  There really is a compounding effect when it comes to saving and investment.  Again a lot of my returns are driven by the performance of the share market.  In the coming month assuming the current market remains flat I am hoping for a net worth of  $465,000.  I think this may be a stretch however I am due to be allocated my rights under FKP rights issue as well as my tax return (which I have really delayed this year).

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