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.

Net Worth Update – May 2021

Goodbye May and welcome to the last month of the financial year (for us Australians) !!! As you know we like to be open and honest with our journey to financial independence so we share our monthly net worth. If you would like to see all net worth posts use this link here.

I’m not sure about you, but May was a pretty uneventful month for us. I would go so far as to call it boring from a financial point of view. May felt like we were just rinsing and repeating April. We automated our investing in April (Feel free to read more about how we automated our investing here), and so we just kind of sat back and let everything do it’s thing according to our investment strategy (You can read all about our investment strategy here).

I’ve tracked our net worth for the last 2 years 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 – $945,323 (up $10,014)

Net Worth Calculator available here
Net Worth Calculator available here

Assets – $1,298,073 (up $9,708)

Another good month here. Our asset increase was made up from our retirement funds (called superannuation here in Australia), and our brokerage.

So what did we do right?

We consistently invested thanks to Pearler’s auto investment feature and invested $4000 this month (If you would like to read more the Pearler Investment Platform use the link here). 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?

Changes this month included consolidating my superannuation from my 3 month contract role in the first quarter of 2021. We also made the decision this month to sell out our Spaceship (made a loss), and transfer it to crypto (so we’ll see how that goes….). Please note that Crypto makes up less than 0.1% 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 – its 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 – $353,056 (down $306)

As you can see our home loan decreased this month after we withdrew for renovations last month. We didn’t pay any extra above the minimum as we are still spending any spare dollars over our investing on renovations. I don’t see the situation changing soon, and we actually will likely need to dip into this again in the coming months.

What liabilities do we include?

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

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.

Net worth Update – April 2021

Goodbye April and Hello May!!!! As you know we like to be open and honest with our journey to financial independence so we thought it was about time to share our net worth progress each month.

I’m a huge fan of the Aussie Firebug who has a successful blog and podcast of the same name. He has tracked and posted his net worth with a blog post every month since July 2015. I’ve only been following him for the last 2 years, but all of his net worth posts are available here for you to look at (its quite inspiring). His posts start with a net worth of 161k and at the time of writing this post it was 887k (March 2021)

I’ve tracked my own net worth for the last 2 years and enjoy seeing it grow over time. Being a Microsoft Excel lover I track it in in a custom made spreadsheet which is available here. 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 enter the details from the app into my spreadsheet.

Net worth – $935,309 (up $21,275)

Net Worth Calculator available here
Net Worth Calculator available here

Assets – $1,288,365 (up $25,054)

It was a really good month for us with house prices growing steadily in our area over the last few months. We are very conservative with our house price and base it on actual sales of comparable houses in our local area not just realestate.com.au’s track my house feature (we also allow a -10% buffer).

Other contributing factors to our net worth this month are consistently investing thanks to Pearler’s auto investment feature (read more about Pearler here). This month was particularly good as we had a dividend pay-out which was reinvested into purchasing more shares.

Our superannuation continues to grow at a good pace thanks to my husband and I both receiving additional superannuation benefits above standard 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.

Our micro investing accounts and crypto account also continue to slowly grow over time.

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 – its 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 – $353,056 (up $3779)

Net Worth Calculator available here

As you can see our home loan increased this month and this is no mistake. We made a withdraw from our redraw account today in preparation to pay for the $4000 bill for renovations next week. Our redraw contains our Emergency Fund and renovation funds. We plan to slowing replenishing our renovation funds over the next few months by making additional payments to our mortgage.

What liabilities do we include?

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

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.