Previous update here.
I’m not too worried about the decline in net worth this month. Cash was down whilst Superannuation increased, as did other investments due to new deposits. The decline in ‘Other Assets’ is a somewhat arbitrary depreciation schedule for a car I bought second hand for $13,800 earlier in the year, in actual fact, I got it for a song as the same year make, model and km’s still sells for $15-16K on the private market but I’d rather underestimate its value than live in a fairytale of a smooth sale if I had to sell in a rush.
The most exciting financial happening this month was having roughly a third of my Superannuation portfolio moved to international equities. The fund was 98% domestic assets but seeking some diversification from Australian equities, I researched the funds available on my advisors platform and then sought their advice. They agreed it was a good modification to the portfolio. I’m still experimenting with having a financial advisor oversee my Superannuation and so far am happy with the results, particularly as the advisor was negotiable on fees and seems to listen to my concerns/suggestions for the portfolio, yet still offer alternative view points when we disagree. Eventually I’d like to self-manage the fund which will reduce costs and if I’m adept, increase returns.
Credit card debt increased (again) due to a road bike purchase (on sale). Cycling saves me ~$8.00 per day in vehicle running costs and parking, plus I get a no-cost workout :). That said, I’ll have to cycle 83 round trips to work to break even on the purchase, but the sheer enjoyment of riding makes up for this.
Cash: $10,113 down 2.61%%
Superannuation: $30,699 increased 1.02%
Investments: $2,943 up 6.63% (net deposits $200).
Other Assets: $13,200 down 1.49%
Total Assets: $56,955 up 0.04%
Credit Cards : ($2,602) increased 44.63%
Student Loans: ($30,790) steady
Other Liabilities: ($21,500) steady
Total Liabilities: ($54,892) up 1.48%%
Net Worth: $2,063 down 27.43%
I’ve started contemplating financial goals for next year, and so far have 4 rough outcomes to guide me:
- Eliminate credit card debt and use the reserve fund in their place, paying back into it as its drawn down
- increase total cash savings to $15,000
- continue self-education on investing (commencing with NYU professor Aswath Damadoran’s online course)
- start my own small business, (probably Q3, and perhaps the most intimidating of goals, I’d like to make it profitable by end Q4, having spoken to others in my line of work, this is realistic).
That’s it for November!
- 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.