Net Worth Update – June 2021

Happy End of Financial Year (in Australia anyway). I hope the 2020/2021 financial year has been good to you, and if it hasn’t I hope the new year is more kind. I don’t know about you but I love the end of financial year as it’s a bit like another chance to reset my new years resolutions, and get back on track. So this month we will take a look at how we’re going to date this year, and what our prediction is for the end of the year. If you would like to see all net worth posts use this link here.

I might sound like a broken record but ever since we automated our investing I’ve felt like our net worth posts are pretty uneventful. We pay our investments first, and live off the rest (simple right…). I get lots of questions around how we automated our investing and what our actual investment strategy is so feel free to read about it here.

I’ve tracked our net worth for the last 2 years (and counting) and enjoy seeing it grow over time. I strongly believe that tracking can assist you on staying the course, because lets face it this getting wealthy business takes time (and it’s easy to feel like you’re not making progress and lose interest).

Being a bit of a spreadsheet nerd I track our net worth in a custom made spreadsheet which is available here for $5.50.

I also track it on a day to day basis on a free IOS app called ‘My Net Worth’ so I can see how I’m going over the month, and then I enter the details from the app into my spreadsheet.

Net worth June 2021 – $961,727 (up $16,404)

Net Worth Calculator available here
Net Worth Calculator available here

Assets June 2021 – $1,320,382 (up $22,309)

Our asset increase in June was made up from our retirement funds (called superannuation here in Australia), our investments and a small increase in our home value.

So what did we do right?

We consistently invested thanks to Pearler’s auto investment feature and invested $4000 this month. We continue to invest at a rate of $2000 every two weeks so depending on the number of pay periods in the month (and any dividend payments) this amount will fluctuate.

Our retirement funds also continued to grow thanks to our generous employment benefits (My husband receives 17.5% employer superannuation contributions, and I have deferred tax benefits for any super contributions that are made to my account).

So what did we change?

Our crypto portfolio dropped this month, but we aren’t worried and keep our investments in this category very conservative in comparison to our other investments. Please note that crypto makes up less than 0.6% of our net worth.

What assets do we include?

Often I see a lot of chatter around what should be counted towards your net worth. I don’t believe there are any hard or fast rules, and as you know I’m a huge believer in the saying ‘You do you and I will do me – it’s a no judgement zone here‘.

For us we like to keep things simple and don’t count our depreciating assets like cars and the boat (otherwise we’d be constantly changing the prices every month).

I also count our primary place of residence towards our net worth as we intend on selling it as part of our financial independence plan.

Additionally we count our retirement accounts (called superannuation in Australia), taxable share/brokerage accounts, and our crypto (yep I know super controversial to add this one in but what the hell).

Liabilities June 2021 – $358,655 (It went up almost 6k)

As you can see our home loan increased this month after we withdrew money for our Airbnb renovations from our savings. We keep our savings in our redraw account to offset the interest we pay on our mortgage.

We will continue to take out money next month in July to pay our tiler, and may still need to dip into this in August (not sure yet). We are drawing out of our savings, and are in a privileged position to do this. That said we are now at a point that I’m concerned we don’t have enough savings so we will likely need to do some topping up in the second half of the year.

What liabilities do we include?

For liabilities we keep things simple and include anything and anyone we owe money to.

Total Net Worth Increase in 2021 (to date) = $201,507

As you can see from the graph below our assets have grown and our liabilities have grown (not in a good way).

Net Worth Calculator available here

Overall this has meant a net worth increase of just over 200k in 6 months. I’m gobsmacked by this amount, and I’m hopeful that we may reach our 1 million dollar net worth target by the end of 2021.

But who knows…….

How do you calculate net worth?

If you don’t want to download the free IOS app or use a spreadsheet you can calculate this manually.

  1. Writing down all of your assets and liabilities separately.
  2. Then add up all of your assets together to get a figure (write this down).
  3. Then add up all of your liabilities together to get a figure (write this down).
  4. Then take the sum of your assets and deduct the sum of your liabilities.
  5. This is your net worth.

Net Worth = (Sum of your Assets) – (Sum of your Liabilities)

Happy Calculating !!!!! If you don’t want to do the calculations yourself the Net worth Tracker I use is available in my Etsy shop for $5.50 (click on the image below for the link).

If you would like to have articles like this delivered to your inbox subscribe below.

Leave a Comment

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s