Monday, 2 November 2015

October 2015 Net Worth: $661,000 (+3.4%) and Goal Tracker

Apologies to everyone for my absence from the blog for a significant amount of time.  I went on my honeymoon for just over 5 weeks and although I have been back for about 3 weeks now I have made some major changes in my life (which I would love to share with you guys and I will do so in an upcoming post) which mean that I am now spending far less time blogging than I used to be.

These net worth posts will continue into the future though so if that's what you come to this blog for...have no fear!

Net Worth: $661,000 (+3.4%)

% Change
Net worth

This change represents two months of net worth progress and although it pales in comparison to previous months where I really had gangbuster returns there was actually quite a lot going on under the hood.  The 3.4% increase above actually represented an $22,000 increase in my net worth and given the changes I'm going to outline below...I'm actually pretty happy with that!

Below are just a few of the items which affected my net worth over the last 2 months:

We paid for our honeymoon expenditure out of savings...but we continued to earn our wages at the same time

  • My wife and I had fully funded our honeymoon through a years worth of savings.  I had accounted for the upcoming expenditure as a 'future liability' and so the cash saved for this honeymoon never really formed part of my net worth
  • However while we were away for 5 weeks we didn't really spend any money that wasn't part of this savings AND we continued to each receive our wages
  • This meant that we had far more cash in the bank when we returned than we originally anticipated
  • We put all of this extra cash towards our home loan

My bonus shares vested this month...however this was a net negative

  • As part of the bonus I receive from work I receive shares which I am not allowed to sell for a period of time
  • I account for these shares as part of my net worth as I have no intention of leaving this job
  • However there is a tax impact of actually being granted these shares and I don't know the impact of this until they actually vest
  • This actually had a significant negative impact on my net worth this month

I created new future liabilities and paid off some old ones

  • The introduction of my future liabilities really helped me smooth out the effect of large expenditures and give me a more accurate idea of how my decisions about the future affected my net worth
  • This month I got a benefit of $4,000 in my net worth because I didn't spend as much as I thought I would on my honeymoon
  • However I also created some new future liabilities
    • My wife and I decided to get a cat and I know pets can cost money...especially with unexpected vet bills so I have set aside an additional $2,000 for potential pet related liabilities
    • Additionally we have already planned and decided on our next holiday for next year and although it will not be as extravagant as our honeymoon I am still setting aside a liability of $8,000 for this honeymoon
  • The net effect of this is that my future liabilities provision increased $6,000 to $14,000

Other small factors continued to have a large effect

Not everything which affects my net worth has a large effect and this month a lot of small things built up into a reasonably big positive:
  • My share account and superannuation account grew reasonably well this month adding a net $8,000
  • I continued to save towards my employee share plan
  • I paid down a huge amount on my credit card
There are so many moving parts it is actually hard to keep track much less forecast where I would end up.  In my last net worth post I had hoped for a net worth of $645,000 at the end of September and although we are at the end of October this is still a far better spot than I thought I would be in.

Next month is once again going to be hard to predict.  I will be getting my bonus as well as having to pay some serious money to the tax office.  Bonus months are typically pretty large for me so I'm going to go large and say I'm working towards a net worth of $690,000.

October 2015 Goal Tracker

I didn't expect to bust through my home deposit savings quite so quickly.  Two months out from the end of the year and with my bonus still left to go I am incredibly pleased with the progress I have made on this front.  Although it looks like it will be reasonably easy to smash my share portfolio target with the cash I am managing to save I am actually taking the time to reorganise my portfolio so I'm not making any large investments soon.

GoalOct 152015 Total2015 TargetRemainingAchieved?
#1: Get Married+$0$5,000$5,000$0YES
#2: Honeymoon+$0$20,000$20,000$0YES
#3: Home Deposit+$23,750$60,397$40,000$0YES
#4: Emergency Fund+$833$8,333$10,000$1,667No
#5: Share Portfolio+$2,636$241,346$276,000$34,654No


  1. Good to hear from you 90M, how was the honeymoon? Sure it was great and relaxing! Have only now come back from PNG & the Kokoda trail myself today..

    Congrats on your results and looking to hear from you more regularly


    1. Hi Jef! Honeymoon was excellent. I can't remember the last time I've felt more relaxed or have had time to think about what I want to do with my life (work, hobbies etc).