October was a busy month, it’s been that long in lockdown working from home, I have forgotten how long it’s been. My waist size hasn’t forgotten. With the opening in October, it’s going to be good to get out and about.
Overall net worth ticked up, but only slightly; 0.42%. This is contributing to an underperforming stock market in September. My new car has just been delivered and does not show in this month’s update. It will be next month, I am unsure if I should list it in my net worth or write it off as a large loss. What’re your thoughts on this?
What I found worth reading:
The Importance of remaining rational by Hamish Douglass, CIO at Magellan.
Why We Need Different Types of Financial Independence by Mrs Flamingo Fire
Events that may shake markets in September by Reuters
How shrinkflation is duping you into paying more for less by Nicola Field
Evergrande Fall Out
Evergrande is one of Chinas largest real estate developers. The company makes its name in residential property, owning more than 1300 properties. These span from huge skyscrapers to low-income housing. Recently they have started to develop amusement parks, malls, and the worlds biggest soccer stadium.
In recent years Evergrande’s liabilities ballooned to over 300 billion USD. In comparison that is more debt than the GDP of New Zealand at 206 billion USD.
You can see how a company worth more than a developed countries GDP defaults, it can have a massive impact on China, and the global economy. Evergrande is trying to not default on its upcoming due date, but if it does, the company can go into liquidation.
The Company’s stock has tumbled, falling 85% this year. Showing that shareholders are not confident in any recovery.
The Chinese government appears to start to help, with cash injections into the financial system to help settle investor confidence. The government is also showing that it wants to protect thousands of Chinese people how have bought unfinished houses.
This is worth watching in the upcoming month. As the default could cripple the Chinese economy and send shock waves across the globe.
Now for Octobers 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.
Net Worth Summary
Cash reserves: have steadily been increasing with a total of $83,902.
This is going to take a hit this month as I purchase a new car, with a 50% deposit.
Share Portfolio: $121,036.
This has taken a bit of a hit this month with the downturn in the markets, and hopefully, the outlook is more positive for October pending Evergrande.
|Vanguard Australian Shares Index||$67,646||loss of $1,751|
|Magellan open class||$22,825||loss of $585|
|JB Hi Fi||$12,637||loss of $91|
|Nearmap||$9,731||loss of $1,286|
|Medibank||$5,696||gain of $16|
|Santos||$2,499||gain of $369|
I did see dividend income in September: $619
- JB Hi Fi $424
- Medibank $157
- Santos $38
This was an overall loss of $2,709
Real estate: Equity worth $703,952, Rental income of $1,330.
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 $2,525
- Mortgage Interest: $953
- Fees: $157
- Insurance: $85
This month was positively geared by $1,330
This is updated bi-annually.
Net worth total: $1,237,154
Overall, a change of $5,159 or 0.42% leading to a net worth increase.
Income vs expense: $4907 Saving (56% saving rate)
This was a good month of savings; however, the gain will soon be stripped away due to a new car purchase.
- Salary: $8652
- Spending $2202
- Home Loan: $1543
- Get back into some form of exercise post lockdown
- Finalise car finance
- See net worth grow by $3,000 at the minimum
- Write one article on the Blog