What a great month!!! The net worth rose 11.5% ($32,484) to $313,892. Geez, if only every month were like this. Finally crossed that $300k mark, and closing in on the 1/3 million. March is bonus season, and due to great company earnings and also an awesome performance review, I got twice the bonus I was expecting. It’s also salary review time, and I got a nice 5% bump in my base salary.
As always, net worth is divided into three main sections; stocks, cash and superannuation, along with my expenses and savings rate.
My total net worth breakdown is as follows:
A breakdown of my “taxable” (cash and shares) and “non-taxable” (superannuation) components.
TOTAL NET WORTH = $313,892
- Taxable (Stocks + Cash) = $215,077
- Superannuation = $98,815
Monthly Net Income
- Salary ($25,220)
- Superannuation ($4,227)
I also receive company stock this time of year. Last year I receive US$7,500 (first time I’ve received this) and this year US$14,000. Problem is these ‘vest’ in 1/3 increments and don’t start until 2 years after you receive or ‘accept’ them. So I’ll receive my first 1/3 in March next year (these are also taxed at your marginal tax rate!). It will be nice when I start reaping the full benefits of this though. Watch this space.
Stocks = $200,386 (+$15,379)
Not only did the overall net worth hit the $300k mark, my ETF portfolio ticked over the $200k mark!
- Vanguard Australian Shares (VAS): $4,986 (target portfolio allocation 40%)
- Vanguard FTSE Europe (VEQ): $4,993 (target portfolio allocation 20%)
Cash = $14,691 (+$11,154)
Replenished the cash reserves this month. Last year this gradually decreased throughout the year, but shouldn’t happen much this year. I don’t like to have too much cash on hand, however I’m wary of the fact I’m fully invested in the share market. I’ve been thinking a bit about this lately, and think I’ll try and keep 10% of my portfolio in cash (I’m no expert on bonds, but I don’t think they are the best option right now with interest rates so low). So I think I’ll try and get my cash up to $20k. It will help me sleep ok at night.
Superannuation = $98,815 (+$5,951)
Increased nicely this month due to the $4,227 added due to salary and bonus. Almost at the $100k mark!
Expenses = $3,123
This level is slightly above what I’d like, but is ok. I’ve had a few unavoidable medical expenses this year so I’m still hoping for an overall 2017 average around the $3,000/month or $36,000/year mark. My “income per month” based on 4% of taxable accounts rose from $628 to $717. If only that yellow line were to increase at that rate every month, I’d be FI in no time! Patience my boy….. Patience….
Savings Rate = 87.6%
Obviously an amazing month due to the income side of things….
Well the Summer is well and truly over here in the southern hemisphere, and we are definitely hitting those colder Autumn months. It’s starting to get difficult to rise from that comfy bed in the morning. My projections still take me to an FI date at around March 2022. Five years. Based on current spending a $1 million target for me seems reasonable. I have found myself lately thinking that 5 years really isn’t that long. Me and the boys went to the airshow the other day, and one of them mentioned the fact it was 4 years ago that we last went. Really doesn’t feel like that long. In my mind I’m trying to break the journey down into chunks; not only money-wise, but also time-wise. I feel like if I can make it another 3 years to 2020, I’ll sort of be on the “home stretch”. We’ll see how that goes….