Networth Quarterly Update – December 2021

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).

In 2022 will have a steady increase in investing as we are both in permanent work now.. thank goodness (should I knock on wood OR “tou tou” so I don’t jinx it!)

Listed below is the breakdown by assets. Property is still high at 72%. We are still keen to keep both properties for the moment so concentrating on getting consistency with salary sacrificing/concessional contribution into super. We are keen to get the Super Funds up to $1.8m within the next 7 years. I can’t really see it but have to trust the process of consistency and contributing aggressively. Selling our home may still be on the cards.

As always I like to play with numbers and have made some rough numbers for potential income (in below table). This is assuming we need to rent when we retire and we would pay off the Investment Property loan with part of our PPOR equity. The rent would be a part of our passive income.

The last few months I have been fairly quiet on the blog. I have been second-guessing the number of $5m that I originally came up with. We live a pretty quiet life and retirement will be no different. Travelling will be a big part of the first 10 years of retirement. I will be looking to delve deeper this year into our FIRE number of $5m vs our passive Income of $150,000 pa that we are working towards. We have 7 years to be able to access our super fund and making the choice to retire, semi-retire or keep working. The CHOICE is what I am looking for more than anything. One of my thoughts is around WHY I think that $5m is the goal. Is it really? OR is it more related to what we wish to have as a passive income, where we want to live, how much we would need as a ‘FAT’ expense budget? I feel that my ego is playing a part in the need to have the $5m goal. I am open to questioning this more this year and really fine-tuning this goal.

Our Progress is really slow and steady.

progress to fire Dec 2021

Looking at the below ‘Total Progress’ graph I have noticed that it has taken 8 years to increase by $1million (from 2013-2021) and I want our number to double in 7 years!! whaaaat!!!!! . I really need to get the Final amount worked (is our goal $5m or something else) out and then drill down on the numbers by month/year to review how the projected line on the graph gets to that goal.

Graph Total Progress Dec21

Stay tuned!