Net Worth (up 3.47%) and Budget Update – April, 2017
Last month’s update can be found here.
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 this month’s budget:
Income: $8,306.70 (down 37.28% from the previous month)
After a couple of months of increased income, we were due for a lower month. However, we can’t be too dissapointed with this figure as it more than covers our expenses and with only one full-time income, it’s still a great result. We had another record result from Air BnB (click link to get $50 off your next booking) income of $1400! We’re stoked by this and hope to keep increasing this semi-passive income stream over the coming months. The next few months are likely to be relatively low as we come into winter but even one or two hundred a month is great.
Expenses: $4,515.10 (down 34.4% from the previous month)
Well that’s a great result. A significantly lower monthly expense is music to our ears and even better than a larger income. A lower expense figure means that we can reach financial independence sooner.
Monthly Savings Rate: 45.65% – although below our goal of 50%, it has still been a good month
Yearly Savings Rate: 44.62%
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 this month:
Assets: $753,227.17 (up 1.49% from the previous month)
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.
Our investment into Acorns (get $2.50 free to get you started by clicking the referral link), a micro-investing platform, is going along well.
Liabilities: $324,468.12 (down 1% from the previous month)
A drop in liabilities is great! 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. We hope to continue to see this figure drop every month.
Net Worth: $428,759.05 (up 3.47% from the previous month)
Getting closer to that magic figure which will allow us to stop being slaves to money.
How did your finances look like last month? We’d love to know so feel free to make a comment below.