Previous update here.
Another month, and another decline in net worth. Teaching income was low this month, as the teaching semester drew to a close yet I managed to supplement my income by ~11% on a side hustle. Two relatively large expenses, a planned service for my car and paying for holiday accommodation enjoyed in September further reduced net worth.
On the plus side, assets increased marginally despite a significant reduction in investments; moral of the story: don’t invest capital which may soon be needed. I also secured rental accommodation that costs 28% less than my current living situation with utilities included in the rent, saving me even more – savings should show up from December as the cost of moving in November will likely wipe out the first month’s savings. And(!) I resisted the temptation to make a $1000 discretionary purchase (a road bike, I love riding), even though the opportunity was a good one. It was just out of my budget and so has to wait (cash or nothin’!).
As noted, investments decreased after cash was used to pay down debts…as much as I’d like to invest more aggressively, at this stage eliminating and then staying out of debt is my primary focus with replenishing my emergency savings and reserve savings account a close second (the bronze medal goes to investing).
Cash: $10,384 up 10.66%
Superannuation: $30,387 increased 3.10%
Investments: $2,760 reduced 37.95% (withdrew net $1,823).
Other Assets: $13,400 down 1.47%
Total Assets: $56,931 up 0.05%
Credit Cards : ($1,799) increased 101.97%
Student Loans: ($30,790) steady
Other Liabilities: ($21,500) reduced 2.32%
Total Liabilities: ($54,089) up 0.74%
Net Worth: $2,842 down 11.53%
- Cash consists of a single transaction account and specific savings accounts. I moved away from carrying cash in Q1 2015 and make 95% of my transactions electronically, for more accurate and up to date record keeping. I have a small transaction account holding around a tenth of my cash funds with the balance held in an ’emergency fund’ and a smaller account for rent savings/payments, both in modest interest bearing accounts (2-3%p.a.).
- Superannuation is the Government mandated retirement savings system in Australia and
- Other Assets consists of one car at market value, depreciating monthly.
- Student Loans consist of the HECS/HELP debt provided by the Australian Government, indexed to inflation. The loan repayments are based on taxable income, with repayments required from from taxable incomes of $54,126p.a. or more in 2015.
- Other Liabilities consist of two loans which are interest free and don’t require repayment until I finish my Masters degree.