Net Worth (up 3.73%) and Budget Update – February, 2017
Last month’s update can be found here.
Well, again it’s been a busy few weeks for us so this update is a bit late. I’m actually wondering whether a monthly update is worthwhile or a bi-monthly or quarterly update is sufficient. We will review this over the next few months. I think reviewing your personal finances on a monthly basis is important as it gives you up-to-date feedback on how you’re going but a less frequent blog post on our finances might make more sense. Anyway, enough jibber jabbering, let’s crunch some numbers!
Every month we check our monthly budget and net worth. At the end of every month, we sit down for an hour or so and go through all of our income and expenses for the previous month.
Here is a summary of our February budget:
Income: $8,950.04 (up 18.32% from the previous month)
Our income in February was below our budgeted amount of $12,000 but this is a very ambitious figure that we have set ourselves this year so not sure how many months we will be able to hit it. Toon’s income was low this month as her employer missed a payment and I’m not really sure how much longer she will stay at this company. We also didn’t earn any money from our side businesses. We did, however, make a record in Air BnB (click link to get $50 off your next booking) income of $407! We’re stoked by this and hope to keep increasing this semi-passive income stream over the coming months.
Expenses: $5,339.78 (up 23.08% from the previous month)
Expenses were higher this month, although still within our monthly budget of $6,226. We made our quarterly Council rates and electricity payments this month as well as another expensive month of grocery shopping (over $1000). Our budget of $800/month really doesn’t seem achievable anymore but we will keep trying to reduce this expense. If you have any tips in this area then we’re all ears! On a positive note, we were under our budget of $400 for dining out!
Monthly Savings Rate: 40.34% – although below our goal of 50%, it has still been a good month
Yearly Savings Rate: 41.39%
We track our net worth to see how all of our assets and liabilities are moving along. We do this for two reasons; firstly, it gives us a good way of keeping on top of our various investments and secondly, it allows us to see whether we are progressing towards our goal of being financially free.
For now, we are including the equity in our home and superannuation as part of our net worth calculations.
Here are our results for the month of February:
Assets: $719,605.21 (up 1.37% from the previous month)
As we mentioned before, we are invested too heavily into property and are slowly trying to diversify into shares and peer to peer lending. Although the properties are a mix of one PPOR and 2 IPs in two geographical locations, we would like to spread this out a bit more evenly across the others asset classes that we are interested in.
This month we made an investment into Acorns (get $2.50 free to get you started by clicking the referral link), a micro-investing platform. It’s only our first month with this company so we will do a post on how this investment is going later this year.
Liabilities: $329,524.03 (down 1.28% from the previous month)
A nice drop in liabilities is always welcome. We don’t have as much control over the positive/negative direction of our assets but the good thing with liabilities is that we are always in control. I hope to continue to see this figure drop every month.
Net Worth: $390,081.19 (up 3.73% from the previous month)
A very healthy increase this month, mainly due to a rise in property values and paying off those pesky liabilities.
How did your finances look like last month? We’d love to know so feel free to make a comment below.