Well this quarter is purely for recording purposes. I have kept up my investing goal and at present, the dollars don’t look like they have moved at all however I know I have increased the ‘units/shares’ so as they go up, the value will increase AND we will have more dividends/passive income. The goal of this post is to document my journey and post each quarter on our timeline.
I reckon in 5 years I will be able to look back at these quarters and *sigh* and have proof that “little by little, a little becomes a lot”……… Gosh I hope so!
This year I am more intentional with documenting each month’s investing and expenses to keep me focused and to feel that I AM doing something. In 6-7 years we will be able to tap into our Superannuation for passive income and gosh I am working on that being a decent amount. Lately, I have been thinking of ways to work for 3 months in the year and live a retired life for the remaining 9 months. As soon as my youngest has completed high school, I am keen to move to something more ‘seasonal’ or ‘remote’ for work. All ideas are welcomed. So far I have the following list:
Even though I don’t have much to report, I like the opportunity to write down what swirls around in my head almost every day. So follow along in the below assessment and ramblings.
I work on a BUCKET type system for our expenses and we transfer money each payday into these buckets and when there is none left, there is none left! We do not use a credit card so there is no overflow to the next month. We do have an emergency fund and a yearly expense fund that I tap into these if needed. For example, a new washing machine OR kid’s clothes (which is one of the yearly expenses that I put money away each month for). With reviewing our expenses on a monthly basis and calculating our actuals vs forecast/budget, it has been helpful to see how we are tracking within our BUCKETS.
Some key notes on our actuals:
Kids Expenses are over forecast due to replacing my Year10’s laptop for school (smashed the screen!). We are at approx 60% of the year’s budget.
Investment Expenses (IP) should come down for the second half of the year now that we have fixed our interest rates.
All other budgets are close to the 50% mark for half the year. It has been an interesting exercise and also good discussion points with my partner about what expenses we will still have in 3-5years time when the ‘kids’ expenses will drop dramatically.
I enjoy seeing other people’s spreadsheets so I thought I would post a section of my expense spreadsheet. I treat my investing each month like an expense. I budget and pay these out pretty much as first priority. After reading THE RICHEST MAN IN BABYLON and the simplicity of ‘paying yourself first’ I have enjoyed working with this approach. This has been a game changer for me. I no longer consider trying to save what is left. It is my first task and then I am intentional with all my other expenses and am always finding ways to Review, Reduce, Remove (refer to this post)! It is also a self-worth/mindset growth that means a lot to me in my pursuit of peace and harmony with my money.
I have left our properties valued as they were in 2021 so our NetWorth has stayed pretty much the same. Since we have no traveling coming up we have managed to save $2000 so we decided to update our dining area. Love the new table, chairs & rug. I would still rather spend on adventures and visiting family overseas but for now it’s all at a standstill (youngest in Year 10 so I reckon we are staying put for another 2.5 years). I dislike being regimented to going in school holidays and 2 weeks is never ever enough! I will wait and then go for a season!
Lets hope the next quarter is steady and we see some movement upwards 🙂
I closed my eyes most of this quarter as the share markets was a dippy ride! I have just kept investing and also working on WHAT should be our passive income and to put that as my focus than the networth of our shares/properties.
The end of another year. This is our second December quarterly review and I have to say, I enjoy seeing the changes. The saying “little by little, a little becomes a lot” is so relevant. As is “just keep swimming”. I should have these tattooed somewhere as these two sayings really helped keep me going. To end the year, we stayed within our boundaries of what we had as income with only taking a few thousand from the Emergency fund for expenses that I couldn’t hold off anymore.
We also sold some shares. FIRST time ever! We could have taken from our emergency stash but that would make me really on edge so had to sacrifice some blue-chip shares. Sold 30% of our NAB shares as we needed to honor our challenge to our 17-year-old who had saved for a car and we were matching what they had saved, (another post about this coming).
So overall our networth has increased by 5.6% from last quarter. This increase was mainly our properties in Sydney increasing in value ( up $106k) as well as our SuperFund (up $40k).
Another 90 days have gone past and life has sent us some curveballs. Lockdown for 3 months, Hubby being on JobKeeper for a while now, finally finding a job (yeh!) but then 10 days later in hospital with fractured ribs and in ICU. It has been overwhelming, to say the least. I find, for myself, the way to shelter my mind is to ‘zoom in’ and keep all of life out. Feeding my family, bare minimum working AND LOTS of reading was my antidote. I logged out of social media and slowly time went by and we are now moving forward.
I wasn’t going to do anything for a while, however, I had promised myself that I would be consistent with my quarterly updates. So here I am updating my numbers and reviewing the quarter that was, financially.
It is the end of the financial year for Australians and I’m closing my first year calculating our Networth in this format each quarter.
I moved some last-minute dollars into my super fund to get as much in for tax benefits relating to the carry forward concessional contributions. I have been worried about how we are going and I gotta admit I would like to be having the choice to work or not from now. I am grateful I have a job however I am bored and feel so restricted. Sometimes I wonder if I could give up working and then I recall my WHY and know if I give up now, I will worry about money for the rest of my life. So I will carry on!
Time does fly …. 3 months have gone by and we have had some good movement. We have had just over 4% to FI increase ($218k) and 10% increase in networth. Most of the increase in our networth is due to having our properties revalued. I have taken the conservative amount that our real estate agent advised. Sydney property prices have been steadily increasing and we have not changed the value for at least 3 years, so worth bringing up to 2021 prices.
This is my second review on our NetWorth since starting this blog. I was looking forward to reviewing our finances, just like I would do this type of activity regularly for work. We had just short of a 1% growth in 3 months ($39k)! I am pretty happy with that. We are still heavy in property (72%) with only 26% in shares. The ‘2021 and beyond’ goal is to push the 26% up a few percentages each quarter over the next 5-8 years.
A lot has changed since my first NetWorth post. In particular, our strategy for our superannuation retirement fund. We have sold the property that was the main investment within our SMSF/ super fund (more details on my SOLD post). Our super fund should start moving on a quarterly timeframe, as it will be transferred into some form of shares/investment fund. This will be decided in the early new year. Stay tuned for that post!
I will be documenting our Networth each quarter so that it gives a snapshot of where we are at.
It gives me focus and the courage to keep moving along this journey!
All my numbers will have Superannuation and PPOR (principal place of residence) included in the calculations. I strongly believe that our retirement funds (superannuation), whether only from employer contributions or with our own salary sacrifices, are so important for the big picture Networth calculations. These numbers, as well as our home (PPOR) will be included, because we may at some point in our journey, decide to use our PPOR as part of our assets and sell up. Anything is possible so I am keeping a very open mind.
Below are our numbers, as at end of September 2020.