This month I had originally hoped to display both my expenditure tracker and net worth post in the same post, however I realised that the level of detail I included in both posts made them suitable for two separate entries. I am looking for ways to streamline these series and combine them. If you would rather see them as two separate posts with all the detail let me know. Tomorrow I will be posting my April 2014 Expenditure Tracker post as usual.
April 2014 Net Worth: 489,000 (+0.3%)
| Value | % Change | |
|---|---|---|
| Assets | $847,000 | +0.1% |
| Liabilities | $358,000 | -0.1% |
| Net worth | $489,000 | +0.3% |
What drove my net worth performance this month?
Although the result for this month looks rather benign, there was actually quite a lot happening behind the scenes. I was not able to reduce my debt balance as aggressively as I would have liked because of several rather large expenditures which happen infrequently, but which really bite when they do happen. My asset performance was also subdued with good savings from my wage but a terrible result in the share market.
Before I have outlined in a little bit more detail the positive and negative factors which affected my net worth performance this month
Before I have outlined in a little bit more detail the positive and negative factors which affected my net worth performance this month
- Positive factors
- I managed to reduce my credit card debt balance slightly this month which I was pretty happy about. Note that all of this expenditure is still within the interest free period which is why it is not paid off completely. It is a high balance but I had significant cash flow constraints this month which is explained in my expenditure tracker
- My superannuation fund actually saw a rather nice increase for the month which was in contrast to my personal share portfolio. I do tend to hold a much more conservative portfolio within superannuation so this tends to perform better in softer markets
- I continued to save into my Employee Share Plan. I've said it before but I'll say it again...enforced savings plans are one of the best things you can do
- Negative factors
- I had to draw down on some of my savings which I haven't done for a very long time - this is because I had to fund significant expenditures (including an unexpectedly large car maintenance bill) which you can see further details on below
- My share portfolio was down 1.5% for the month driven by a higher A$ (versus the US$). I have quite a few investments in US$ investments which have been benefiting from the falling A$ but this month the increase in the currency really hurt me. In addition several of my cyclical stocks were down for the month which doesn't worry me in the short term but which affected my returns
What is my outlook for next month?
In last month's net worth post I wrote that I had hoped to hit $490,000 for the month. This has now been my target for the last 2 months and I have failed to hit it both times. The coming month should be slightly better (assuming markets don't ruin my return) and I am hoping to increase my net worth to $492,000. Only 2 months away from my year end I am still hoping that I can somehow get to the magic half million dollar mark.
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Hey 90M,
ReplyDeleteGrowing quite nicely for you, awesome and it must be a great feeling for you to keep seeing it grow :)..
Always wondered when reading these what your goals are once you no longer have to work or have sufficient passive income i.e. the why behind you enjoy managing your personal finances? Understand that you may have already discussed on not want to discuss this but am curious to know..
Hi Jef,
ReplyDeleteI guess it is something I do need to think about but it seems quite far away. To be honest I'm not one of those people that hate my job and wish I was doing something else. I like waking up and coming to work every day so I'm not really sure what it would feel like to not have to do that. I guess it's a question that most people who are thinking of retiring think about so I think I'll search one of them out and ask them!
That's fine, I suppose I am the type of person who wants to have the flexibility and freedom to do with my time as I choose.. More on this when we get the chance to chat in person..
DeleteCheers
Oh I completely agree with the wanting the flexibility to do what I want to with my time - that's my ultimate goal. I just don't have a defined plan for that time once I achieve it.
DeleteOh okay cool, yes I definitely know exactly what I'd do, ironically it would involve having a business full-time, although only needing to work when I choose to do so..
DeletePlus travel, keeping fit and helping others out as well :)
Sounds like a great plan! Looking forward to seeing you implement it!
DeleteCall me crazy, but I find it interesting that your investments in your super fund are more conservative than outside. I would have thought that given such a long timeframe to invest, they would have been quite similar.
ReplyDeleteHi Streetikonz! I take your point on the investment horizon but it more has to do with the level of control that I have over the investments. I am willing to take higher risks where I have a degree of control and insight into the investments versus a 'set and forget' type investment approach that apply to my superannuation
DeleteThe simple answer is, TAKE MORE CONTROL! Have you thought about taking the leap and setting up an SMSF?
ReplyDeleteIf you don't want to incur the set up costs and ongoing fees, you could also look at a "Wrap" account that is set up specifically for superannuation (i.e. they have a trustee). That way, you can invest your super in managed funds or individual equities. Some wrap accounts also have international share access. Unfortunately, the downside of wrap accounts is that you normally need to have a financial adviser attached to the account.
After all the fees, an SMSF might be cheaper! Check out eSuper, they're exceptionally cheap for set up.
Hey Streetikonz,
DeleteOut of interest have you actually invested?
It's great to make all of these suggestions but most people, who work full time, run a blog etc and have their own investments outside of super simply do not have the time or desire to have an SMSF..
Interesting thoughts but not too sure this would be the forum to suggest that anything financially related is "simple"
Cheers
Hi Jef! Thanks for the support but streetikonz actually has a really interesting approach to investing - he has a blog (which is similar to this one) where he goes through his approach to investing and wealth creation. Worth checking out actually: www.projectikonz.com
DeleteHi Streetikonz! Would definitely be interested in taking control of my superannuation product in the long term. Am looking to get my personal trading account (outside super) under control first!
DeleteI don't know a great deal about wrap products so thanks for the heads up - will definitely look into it
Owe you an apology Streetikonz :O.. Will have to check out your site sometime, 90M only recommends the best :)
Delete