Tuesday, 12 July 2016

June 2016 Annual Report

This post is one I really enjoy writing every year.  I love looking back on the year and assessing how I did and also looking at what I wanted to achieve.

In some ways the last year has been a little boring on the financial front.  I have been building cash so that my wife and I can look at buying our new home so I haven't been as active with my investments as I was in the first few years of this blog.  However this year I have been doing a lot on the personal front and in cleaning up my share portfolio which had grown incredibly unfocused.

I will look at most of these points in detail below and this post is going to be one of my longer ones so feel free to skip to whatever section interests you most (I've tried to signpost it as well as I can)

Annual Net Worth Performance: +$200,000

Over the year to June 2016 my net worth increased from $561,000 to $761,000 and although this is a spectacularly large increase there are a few reasons why this is a one off which I will discuss below.  However even excluding these one offs my wife and I managed to do really well this year especially given the amount we have been doing in our personal lives including:
  • Getting married
  • Going on two overseas holidays
  • Doing some expensive renovations on our home

Although the net worth performance over the year looks pretty amazing there are a few one offs I should probably call out here:
  1. In 2015 I had adjusted my net worth down to account for the fact that we would have to spend a significant amount on our wedding and honeymoon so these big expenses didn't actually impact our net worth
  2. At our wedding in July last year our guests were incredibly generous (especially our parents) and this boosted our net worth by ~$30,000
  3. We had our home revalued in August last year by the bank and this added another $40,000 to our net worth over the year
However even allowing for this we still managed to do very well over the year.  Before I go into the details of what we did over the year it may be worth looking at how I have done since I started writing this blog over 5 years ago.

The power of continuous saving really does work...

Wednesday, 6 July 2016

June 2016 Net Worth: 761,000 (-1.5%)

I thought I would start this post with a quick thank you to those who still read this blog 5 years after it first started.  I know that I am posting less than I used to and it has gone from being a blog which disseminated some (hopefully) useful financial knowledge to pretty much a pure personal financial blog.

I know I've explained it before but I thought it would be worth recapping why I decided to post less.  Most of us only have a finite amount of time in the day and I had to decide how to spend mine.  Instead of posting on this blog (and indeed on other blogs which I write) I decided to scale that back and spend time actually investing and trying to get ahead financially.  There were plenty of things which I had planned to do financially which, frankly, were never getting done and I was spending hours each week writing blog posts.

I decided that a better use of my time was to focus on my business of investing.  Unfortunately this has meant that I have far less time to post here.

With that being said I do still enjoy tracking my financial progress and it does allow me to take stock once a month of where I am at.  This month I will also do an annual review of how I have performed over the last year (I will upload that post in a few days time).

June 2016 was a tough month...

I don't think I'm the only one that had a tough month this month with markets going into a nose dive on the back of the unexpected Brexit vote.  My share investments tend to be higher risk and have a higher beta and my financial performance suffered significantly as a result.

Here is a summary of where I ended the month...

Now let's see where I took most of my pain this month...