Apologies for the delay for November’s update. I was preoccupied with most of my time dedicated to my local election. No, I wasn’t running, but like to take an active approach.
November is the start of the silly season for spending, the real challenge is to not overspend in November and December. I have a Christmas party this afternoon where the host has spent over $2,000 on the party. I cannot believe they are spending this much. The pressure people put on themselves during Christmas is immense. People going to this party don’t care about food, or if they must bring their own beer. People just want to gather and have a laugh; At the end of the day the people will forget about party but remember the social interactions.
Overall, my net worth went down, by half a per cent. This is contributing due to some electrical work at my residence, purchase of Christmas gifts, and a fall in the stock market.
On the blog this month I did not have time to write a new article. However, I am now on five weeks of leave, and plan to have a few articles good to go for next year. December update will be slightly different with a half yearly update.
What I found worth reading/watching:
In April, the number of workers who quit their job in a single month broke an all-time U.S. record. Economists called it the “Great Resignation.” But America’s quitting spirit was just getting started. In July, even more people left their job. In August, quitters set yet another record. That Great Resignation? It just keeps getting greater.
“Quits,” as the Bureau of Labour Statistics calls them, are rising in almost every industry. For those in leisure and hospitality, especially, the workplace must feel like one giant revolving door. Nearly 7 percent of employees in the “accommodations and food services” sector left their job in August. That means one in 14 hotel clerks, restaurant servers, and bartenders said see ya later in a single month. Thanks to several pandemic-relief checks, a rent moratorium, and student-loan forgiveness, everybody, particularly if they are young and have a low income, has more freedom to quit jobs they hate and hop to something else.
The Great Resignation
It’s an interesting time now, where workers have come to the realisation of better prospects in the job market or in their own personal life. One of the benefits that has come out of the pandemic, is how much people enjoyed not going to the office. Go figure hey.
One myth of the great resignation is that is about employees quitting their jobs. But it’s not, the job market is growing, and more and more people are finding better paying jobs.The increase in quits is mostly about low-wage workers switching to better jobs in industries that are raising wages to grab new employees as fast as possible. From the quitter’s perspective, that’s a job hop. The great resignation is happing more at the low-wage service-sector economy. That makes it more like the Big Switch than the Big Quit.
Second myth is white-collar workers are quitting from burnout. Although burnout has remained steady or declined for most workers during the pandemic, according to Gallup polling, remote workers are significantly more likely to say they’re burned out now compared with before the pandemic. Because remote workers are a very white-collar group, this fact has led to a great deal of news coverage claiming that the Great Resignation is being driven by white-collar professionals.
But quits aren’t rising much in finance, real estate, or the broad information sector, which includes publishing, software, and internet companies. This year quits for leisure and hospitality workers have increased four times faster than for the largest white-collar sector, which is professional and business services.
Lastly, this is purely a 2021 phenomenon. Coming out of the pandemic, older workers and retiring earlier as they have already experienced a “forced” early retirement and are happy to stay that way. This coupled with the low wage workers job hopping, it can be seen why we are thinking we are in a worker’s revolution. But will be short lived, and only benefiting deserving low wage earner. If you can job hop for a better job, do it now.
Now for December Net Worth Update:
It’s my goal to reach $1,250,000 by March 2022. I also want to further diversify out of real estate into shares, either by another Equity builder loan or cash purchases. With this goal of reaching 150,000 by January 2022.
Cash reserves: Cash took a hit with a loss of $4,997 to a total of $70,935. Due to Christmas purchase and about $3,000 worth of electrical work.
Share Portfolio: $120,153.
I was hoping after September’s fall, we wouldn’t have another hit. But the market got spooked with the new variant of Covid.
|Vanguard Australian Shares Index||$67,610||Loss of $636|
|Magellan open class||$23,828||Gain of $334|
|JB Hi Fi||$13288||Loss of $767|
|Nearmap||$7,613||Loss of $3,559|
|Medibank||$5,392||Loss of $112|
|Santos||$2,280||Loss of $154|
I did not see dividend income in November:
This was an overall loss of $4,139
Real estate: Equity worth $710,298, Rental income of $1,794
This is a conservative estimate by the bank, and what I would feel comfortable selling at if I had to sell tomorrow.
Rental income of $2,020
- Mortgage Interest: $1,012
- Compliance check: $99
- Fees: $126
- Insurance: $85
- Rates $364
This month the investment property was positively geared by $108
This is updated bi-annually.
Net worth total: $1,230,235
Overall, a change of $5,683 or 0.46 % led to a net worth decrease.
Income vs expense: Dipped into my savings of $646 (0% saving rate)
This was not a good month for my spending. All because of the much-needed electrical work.
- Salary: $7975 Increase of $950
- Spending $3,958
- Electrical work $3,102
- Home Loan: $1543
Ill have updated yearly goals in the next instalment. Till then, enjoy your holidays, spend time with family and friends. Don’t be financially silly with spending, but also don’t be a scrooge.