Net Worth Update (December 2016)

white-gums

Previous update here.

Quick Summary: December flew past as I kept up hours at work as best I could. The biggest change that occurred was moving house into a small studio apartment closer to work. This cuts my commute by 2 whole hours each and every day, with 10 extra hours each week I can use for producing income, completing my PhD or recreation. The downside is that my rent essentially doubled, but that’s compared to renting a single room in a 3br house vs. having an apartment to myself.

Cash increased significantly, but as I pay myself a gross salary I need to deduct a certain amount for tax which goes into a separate account I don’t withdraw from. Come tax time, my accountant will inform me how much tax I need to pay the Australian Tax Office. I estimate the deduction on a monthly basis so I should easily have enough to cover my taxes when due. By definition then, a component of my cash isn’t a genuine asset although it produces interest in the meantime, and perhaps I shouldn’t include it here (along with including my business loan as a liability). Credit card debt increased substantially, mainly due to moving expenses and buying some furniture (did I mention I moved!) I’ll be paying this down quickly over the next couple months.

Assets:
Cash: $13,090 increased 40.37%
Superannuation: $34,864 up 2.49%
Investments: $0 (nil holdings)
Other Assets: $11,420 down 1.20%

Total Assets: $59,373 up 8.15%

Liabilities:
Credit Cards : ($2,399)  increased 1001.32%
Student Loans: ($31,539) steady
Other Liabilities: ($21,999) steady

Total Liabilities: ($55,937) increased 4.06%

Net Worth: $3,436 increased 200.49%

december-net-worth

As always, thank you for following along!

Notes.

  1. Cash consists of online 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.).
  2. Superannuation is the Government mandated retirement savings system in Australia
  3. Other Assets consists of one car at market value, depreciating monthly.
  4. 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 taxable incomes of $54,126p.a. or more in 2015.
  5. Other Liabilities consist of two loans which are interest free.
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10 thoughts on “Net Worth Update (December 2016)

  1. Saving 10 hours per week on your commute will make a huge difference in your life. In 2015, I bought a house and went from a 35 minute commute to a 15 minute commute. You will be amazed at how much happier you will be in the New Year!

    Best of luck in 2017!

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  2. Geri

    This is nice. I also have my personal version similar to yours. It sure helps in managing my money. I want to fight the mindset that SALN is only for those who have a lot. What they fail to realize is that if they manage whatever small amount they have now, soon they will have more

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  3. I’m still surprised that you are able to draw a wage out of your business so early. I’ve been listening to some podcasts about people starting small businesses, and it seems that it can take 1 – 3 years before people feel they are able to pay themselves. You are definitely doing something right!

    I am envious that you have managed to cut your travelling time by so much – but don’t let yourself adjust to the new normal. Make sure you have a plan for how you are going to use that time (or at least most of it), even if it is a plan for recreation. Just a couple of more years for me before I’ll be looking to get back to a job closer to home again. There is just nothing like it.

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    1. It’s a small wage, but great to draw it nonetheless. My costs are reasonably low which helps. I think you’re spot on with making good use of the extra time – I am still deciding how I’ll use it but I think mainly for exercise, reading a little and working on creating passive income streams – stocks mostly. Your two years might go by sooner than you know it (if 2016 was any indication), and I hope you enjoy the shorter commute once you’re closer to home.

      Liked by 1 person

  4. This is great. I’m all about living near work. I’d say 30 minutes (or less) door-to-door commute is the sweet spot for me. I’d say it’s worth it to have your own space, and 2 extra hours added to your day. Would be great to see a post about what you end up doing with those 2 extra hours per day, and if/how it’s contributed to your assets!

    Liked by 1 person

    1. Having some commute time to wind down from the day or get the cogs turning for work is very helpful I think. It gives you some time to switch ‘tracks’ for the day. I like the idea of the blog post, will keep you in the loop if I put something about it out 🙂

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  5. Nice job WF30. It’s great that your business is already working out strongly for you. I have a feeling that 2017 is going to be nothing but upwards for you – I can’t wait to read about it 🙂

    Good job on having a reliable cash amount.

    Tristan

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