Nice little increase this month, up 2.4% ($6,555) to $281,408.
Net worth divided into three sections; stocks, cash and superannuation, along with my expenses and subsequent 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 = $281,408
- Taxable (Stocks + Cash) = $188,544
- Superannuation = $92,864
Monthly Net Income
- Salary ($7,534)
- Superannuation ($1,013)
Stocks = $185,007 (+$6,167)
Purchases: SPDR S&P Global Dividend (WDIV): $4,990
My target allocation to global value equities is 20%.
Cash = $3,537 (-$1,883)
Cash reserves are getting a little low. Get my company bonus in March so plan on replenishing this back up to $10k – $15k.
Superannuation = $92,864 (+$2,271)
A nice little bump, Aussie stocks seemed to do well this month. I’ve stopped making extra monthly contributions to super, but I’m still considering whether to start doing this again.
Expenses = $3,285
This month was a little higher than I’d have liked. However it’s still summer here so I tend to get out and about a little more, which means more the entertainment spend is up. I realise my expenses graph doesn’t look very good with the rising line, but I spent most of 2015 back with my parents (doh…). I am of course wary of lifestyle inflation. I expect this flatten out around the $3k per month level. My “income per month” based on 4% of taxable accounts rose from $614 to $628. It’s a nice motivator seeing this rise.
My current average is 64.7%, and I’d like to keep it at 60-65% on a long-term basis. My average for the 2016 year was 60.1%.
Another month gone. Time is flying already. I know many people give themselves a net worth target of “one million” and it seems quite arbitrary, but this number closely reflects my goals. I’m currently spending about $36k per year and I’m quite comfortable with this lifestyle. It covers my core expenses very comfortably, and leaves room for entertainment (and decent single malt!). To leave me a little more room to move, I’m targeting $40k. Based on 4% rule the target is $1 million.
According to my projections, 2022 is the year I may be around this mark. Based on 7% real return (perhaps a little optimistic) I should have around $700k in liquid assets (cash and ETFs) and $200k in superannuation. 2022 is a rough goal, and I realise that there is no way I’ll just stop working at that point completely. But it means I won’t have to keep working in a high pressure job (that I’m already beginning to enjoy less and less). I can take a good chunk of time to travel and reassess what I want to do with my life.