Net Worth Update (and FIRE NW)- October 2021

We calculate our Net Worth and FIRE Net Worth and track it monthly. If you would like to see all net worth posts use this link here.

Total Net worth October 2021 – $1,028,762 (up $5,886)

FIRE Net worth October 2021 – $370,112 (up $82,247)

Net Worth Calculator available here
Net Worth Calculator available here

Total Assets October 2021 – $1,583,330 (up $83,539)

Our assets increased again substantially in October, and this was from our continued purchases of ETFs from funds we freed up as a result of our debt recycling strategy (and recent home equity refinance). As a result of borrowing to invest, we have also increased our liabilities so this increase to assets hasn’t resulted in the same increase to our total net worth.

So what did we do right?

In addition to the additional ETF’s we purchased via debt recycling we continued to invest our income into ETFs. In October we invested a total of 3k (outside of super/retirement) via Pearler’s auto investment feature (as per our regular investment strategy). October was a really expensive month with renovations so we didn’t invest as much as we had aimed for (the goal for October was 4k).

That said we have invested 52k this year to date and we are pretty chuffed with the achievement. We are still hoping to hit our super stretch goal of having 200k invested by the end of 2021 (we are 19k away from this goal, and we don’t count the debt recycling-related ETF purchases towards this goal).

Our retirement funds continued to grow thanks to our generous employment benefits (My husband receives 17.5% employer superannuation contributions, and I receive 10% but also have deferred tax benefits for any super contributions that are made to my account).

So what did we change?

We didn’t change anything this month and have continued to invest regularly and live below our means.

Total Liabilities October 2021 – $554,682 (increased $77,653)

Our liabilities increased this month as part of our debt recycling plans. Our interest rate is 1.99% and is a variable loan. Next month our liabilities will stabilise and hopefully from here on in there will only be decreases to report here.

Total Net Worth Increase in 2021 (to date) = $268,428

Net Worth Calculator available here

End of 2021 Goal 1 million dollar net worth: Completed August 2021

How do I track our regular net worth? (keep scrolling to see how we calculate our FIRE net worth)

I’ve tracked our net worth since mid-2019 and enjoy seeing it grow over time. I strongly believe that tracking can assist you in 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.

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)

How do I track my FIRE Net Worth?

Calculating your FIRE net worth is slightly different to calculating your regular net worth.

FIRE Net worth = FIRE Assets – FIRE Liabilities

FIRE assets for us are those that are invested, earning income, and accessible to you now. These assets and liabilities don’t include our home, car, furniture, collectibles, jewelry, and retirement accounts that we are unable to access until traditional retirement age (e.g. Superannuation for us Australians isn’t accessible until 60 years old).

Note: You may wish to include Super/Retirement if you plan on retiring at an age where you can access these, or you may want to look at Aussie Firebugs calculator here which allows you to incorporate your super/retirement into your FIRE plan. We have opted not to do this as superannuation rules around access are controlled by the Australian Government, and therefore could change at any time.

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). I’ve also just updated it this month to calculate your FIRE net worth as well. If you’ve already purchased this get in touch with me with proof of purchase and I will send you the updated version.

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