Tuesday, 1 April 2014

March 2014 Net Worth: $487,000 (+0.5%)

Value% Change
Net worth$487,000+0.5%

I expected this month to be another negative net worth performance after several of my share market trades went against me however it actually turned into quite a good result because I saved a significant amount of my wage.  In recent months the share market has driven my net worth performance far more than any effort I could muster on the savings front however this month was much more 'normal' if somewhat under-whelming.

I had targeted a net worth of $490,000 for this month and although it was somewhat disappointing not to have gotten to this mark, month to month movements are not what I am particularly focused on.  I still think that $500,000 by the end of the financial year (June 2014) is achievable however the $550,000 goal I had set last year is definitely out of my reach now.

Below I have outlined some of the factors which impacted my share price performance this month:

Positive factors

  • Significant savings towards my short term goals
    • At the start of this year I outlined what some of my big financial goals were
    • These required a significant amount of savings and I have been putting away for these targets every month
    • The downside to this is that I know that these are not long term savings and that my net worth is going to take an almighty hit once I have to spend the cash
    • Currently I have ~$10,000 saved towards these short term goals
  • Continued savings in my employee share plan and superannuation
    • I have said it before but am willing to say it again - the automatic nature of my employee share plan as well as superannuation continues to keep my savings ticking upwards regardless of what else is happening in my life
    • I have always been a little bit baffled by the "pay yourself first" concept that so many people espouse but this is really a way of making that a reality
Negative factors
  • A negative share market return
  • A significantly higher credit card bill and lower cash balance
    • My credit card bill was $600 higher and my cash balance ~$900 lower than in the previous period
    • I had previously signalled that March is a perennially expensive month for me with birthdays and anniversaries and this turned out to affect the amount I spent quite significantly (I'll provide more details about this in my expenditure tracker)

This was not a particularly noticeable month one way or another.  My ability to move the dial meaningfully with my current wage is limited and so this is what I will be tackling next.  I am currently focused on starting a business (you may have noticed that I have been posting less) in order to tackle income line of the income / expenses / savings equation.  I do not think this is going to have a short term impact - in fact if I have any business income by the next net worth update I will be surprised.  Therefore my goals will remain relatively muted and I am hoping for a net worth of $490,000 next month.

You May Also Be Interested In
February 2014 Net Worth: $485,000 (+1.6%)
Superannuation: All posts
2014 Financial Goals
What ever happened to that small business idea?  February 2014 update

No comments:

Post a Comment