Net Worth Update – Jan 22 $1,247,619 (+17,384) & Half Year Update (+$83,606)
Net Worth Update – Jan 22 $1,247,619 (+17,384) & Half Year Update (+$83,606)

Net Worth Update – Jan 22 $1,247,619 (+17,384) & Half Year Update (+$83,606)

Welcome back to the murky waters of the journeys to financial freedom. After some much-needed shore leave at the end of the year, I’m back and roaring to dive back into our path.

Even though January is the month of spending for most of us, my Ships Ledger has grown by $17,384. This is from debt reductions and an increase in my properties. We did lose $2,500 from our cash over the break. That large spending is from gift-giving, Christmas parties, and holidays.

What I found worth reading/watching:

I have found some time to read some new personal finance books and some of my old.

Sort Your Money Out and get invested by Glen James; this was released late last year and it was heavily discounted on Amazon around Christmas for $12. So I felt like I had nothing to lose.

Many financial savvy people will know who Glen James from My Millennial Money is. If you don’t, he is one of a few financial podcasts in Australia. However, I have found his later stuff a bit more of a sell-out and his advice to be more dangerous for new time investors or people who wanted to get into financial ship shape.

He will quickly sell products from marketers or the latest; recommending crypto to beginners. While I have no issue with investing with crypto, It should be left to the more financially stable and only use a small per cent of your portfolio. One person who has done especially well is The Fi Explorer, where you should check out his strategy.

Anyway, his book is pretty good for a beginner level. Was good to read up on some of the basics again. He won’t be taking the top spot from the Barefoot Investor for the best beginner financial book, but it’s good to have some more Australian finance books.

One chapter I found especially good was about health insurance. Private health in Australia is confusing, difficult to get help, and expensive. The Australian government did release a comprehensive private health insurance educator and compare tool for private health insurance, and it’s worth checking out. But the difficult decision comes to when does private health make sense for your family.

In his book, he has this simple chart that I thought was beneficial to me in making a decision, and I hope it does with you as well.

Now for the January Net Worth Update:

Portfolio goal:

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.

Upon review: I will most likely reach my $1,250,000 goal by March; however, the share market has been very volatile now, leading to failure to meet my $150,000 share portfolio.

This will update my goal to reach $150,000 by the end of the financial year of 2022.

Summary

Cash reserves: $68,449

Christmas damage this year was close to $2,500, I would like to be back to $70,000 by the next report.

Share Portfolio: $114,619

We are seeing a correction now due to inflation fears. Reducing any potential gain.

Vanguard Australian Shares Index$64,106Loss of $4,518
Magellan open class$22,825Loss of $1,254
JB Hi Fi$12,971Loss of $461
Nearmap$7,067Loss of $961
Medibank$5,064Loss of $296
Santos$2,520Gain of $632  

I did see dividend income in January: $1,058

  • VAS                        $632
  • MGOC                  $426                      

This was an overall loss of $6,134

Real estate: Equity worth $735,441, Gross rental income of $1,035

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 $2,565

Rental expense:

•             Mortgage Interest: $976

•             Fees: $151

•             Insurance: $85

This month the investment property was positively geared by $1,035

This is a really good outcome, and the highest income we have received from our properties.

Superannuation: $357,027

This is updated bi-annually.

Net worth total: $1,247,619

Overall, a change of $17,384 or 1.41% led to a net worth increase.

Half-year update: $83,606 increase

With the end of the year complete, I would like to use this brief time to review the past 6 months.

The table above is the net worth tracker. From the past 6 months, the separation between net worth and liabilities have been increasing at a steady rate. This is where the bulk of my net worth increase comes from, debt reduction.

Assets: Increased $56,264

  • Property increased by $20,000
  • Cash decreased by $12,760
  • Shares decreased by $5,208
  • Superannuation increased by $57,232

Super and property did most of the heavy lifting, while I need to focus on my cash supply and equities for the next 6 months. But it should be noted I did buy a new car, taking a large toll on my portfolio. You can read more here.

Further, my wife has also been on maternity leave for the past year, meaning that we have relied on my salary only. That’s about a $40,000 loss right there, but a sacrifice worth taking.

Liabilities: decreased by $21,767

  • Property one decreased by $14,984 (not tax-efficient)
  • Property two decreased by $7,966
  • NAB Equity Builder decreased by $1,382

I am happy with my 6-month update, yes it could have been better, but at least it didn’t go backwards. Our child just turned one this month as well and has started daycare. This allows my partner to go back part-time allowing us to receive some more income.

In Closing

You should see an increase in my blogs activity this year. So, if you haven’t already joined my mailing list, please do so. As my mailing list is my primary method of contact, where I will only contact you on new blog posts.

Hope the winds stay true for you this year, and I hope we have a good year on our ships journey to financial freedom.

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