Networth Quarterly Update -December 2020

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!

Networth Dec 2020
Networth Asset Breakdown

Progress to FIRE / FI

For a visual on our progress, I use a @familyfinance_ tool Etsy graph to show our progress to FI. Love the impact the visual gives. It uses the 4% rule and our numbers do include our PPOR (family home).

Yearly passive income (this would also need to include rent since we would need to sell our PPOR to fund this)

  • Lean – $100k pa
  • Fire – $130k pa
  • Fat – $180k pa (this is our preference as may need $30-50k for rent)
Progress to FI – including our PPOR

It does make me wonder about being 85% to LEAN FI. I do include our super/retirement fund and our home so have pulled out our home to see what we are tracking like in the version below. My original target of $4.5- $5m for FAT FI assumes we need a higher passive income for renting, so if I keep the family home (or something of similar value) then our FAT FIRE will reduce to $3.5m and we are not as close to FI. Below graph does not include our PPOR value.

Progress to FI – not including our PPOR

Our PPOR is a large part of our assets, so hoping this moves the other way and becomes more investment/share heavy over the next few years.

A thought …

After being part of this community on a daily basis over the last few months, I have realised that I am always looking at our combined NetWorth. I feel it is also empowering to review my portion to see MY own NetWorth. Even if I just split our NetWorth down the middle, I feel very proud to acknowledge that I am a millionaire in my own right! I have never thought of this before but after reading @rethinkingfi NetWorth update and feeling the strength come from @saverspender it is the right thing to do for ME. It doesn’t make me any less of a partner and sharing this journey with my husband BUT reminds me that I have come from very humble beginnings and I have come far. I AM building wealth for my family AND for myself! I should not forget that!