Wednesday, 3 February 2016

January 2016 Net Worth: $727,400 (+1.7%)

You may have noticed that over the last few months I have really dropped off on my posting schedule.  I have not uploaded any goals for this year and I haven't really been updating you on what has been going on in my financial life.

Originally this is because I was developing a new financial blog concept.  This blog was originally set up when I wanted to be rich and take over the world.  Since I started this blog however many things in my life have changed including my perspective on life.

I sat down and did some really hard thinking and worked out know what?  I don't know what I would do with $90 million that I couldn't do with $5 million and what I want with the $5 million is more freedom rather than toys.  The only extravagance I would spring for is Business class airline seating (seriously!).

If I'm going to be honest with you I don't really know what I want anymore.  I'm in this odd place where I'm remarkably comfortable but I'm not really sure what comes next.   I'm not financially "free" yet and I'm going to keep working towards this goal but I haven't yet nailed down what a 'perfect' life would look like and until I do my goals are in a little bit of limbo.

With that out of the way - I will (for the foreseeable future) still be updating my net worth on this blog.  When I work out what I want to do next you will be the first to know.

January 2016 Net Worth...the detail:

I have been thinking about providing a little more detail in these net worth updates for a while and I thought I would start this month.  In coming months I may tweak exactly how I do this but let me know what you think anyway.

This month was a real roller coaster in terms of net worth.  I started the month at $714,000 and at one point was well below the $700,000 mark before I rebounded towards the end of the month.  

During the month the following things moved the dial significantly:
  • I invested directly into the share market when it was getting hit pretty hard.  I probably pulled the trigger a bit early on this as the market has continued to slide however I'm not unhappy with this decision
  • My wife and I continued to save into our home loan offset account (disclosed above as a Cash account) as we are saving for our new home.  We are aiming for a $500,000 deposit before we buy the new place
  • I changed my superannuation structure so it was more heavily weighted towards shares and away from defensive sectors.  I still believe the decision was right although my timing was terrible and this hurt me over the month
  • I topped up my investment in my coin collection for the first time in a long time.  I've built up $1,000 in available alternative investments and will be looking to deploy this in the coming months
  • I continued to invest in my employee share plan (disclosed as restricted investments)

These days market moves tend to move the dial far more than things like savings and expenses however my expenses have gotten out of hand recently.  As a result I have started tracking my expenses every day again.  

This time I've made life easy for myself and I'm using an app and the results are really interesting. I am going to keep tracking this for another 2 months before I make any large changes.

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