June 2021 – Net Worth Update

By firebynumbers

As part of my FIRE blog I will be tracking my net worth on a monthly basis and compare it to where I want to be when I reach my FIRE number. I will also compare it to where it was sitting last month. A summary of my assets are as follows:

Explanation of each category:

Property

As you can see there is a big change in this category, over $75,000 improvement compared to last month. The main driver for this was bringing cash back from my US Bank accounts, and putting it back into my offset account. The value of my properties have not changed since last month but the net debt levels have reduced significantly.

Cash

This has been the biggest change over the past month, and it is something I have been wanting to do for a little while now. Since all my US Taxes have been paid, I have been able to transfer the money back into Australia and putting it into income produce assets (shares and property).

I still have about $12,000 more to go to bring back from the US, once this is done however, I plan to only keep around $3,000 or so in cash at any one time. I still have a large chunk of cash in my offset account which I am able to access as my emergency fund if needed.

Shares

I have deposited an additional $21,000 into my SelfWealth account this month, but that still means there has been over $6,000 just in growth of shares which is incredible (and not sustainable, but I will enjoy the good times while I can).

I do not plan on having any more significant deposits in the future, and will aim for roughly $5,000 per month in regular deposits.

Superannuation

This has gone up by a fair bit which is always good news, of course it is basically just showing the gains in the share market. Slowly but surely the superannuation account will keep on growing and give me a nice backup plan in the future.

Other

Minimal change from previous month

May 2021 Budget Summary

Income – TOTAL: $9,726.10

Normal Income: $5,105.00
IP Income: $4,261.10
Other Income: $0.00

Expenses – TOTAL: $2,650.75

Normal Expenses: $1,255.21
IP Expenses (not including Interest): $698.88
IP Interest: $1,162.64

Savings Rate – 67.98%

This has been my highest savings rate of the year! I had a relatively cheap month in terms of expenses, and I have a feeling next month will not be cheaper as I can foresee some rather large expenses coming my way.

I am still delighted to be well on way on reaching my target savings rate for the year, as it currently sits at 53.53%, well above my target of 40.00%.

I also like to track my income and compare it to my passive income, including my gains for the month.

June Normal Income – $5,105.00
June Net IP Income – $2,761.78
June Net Shares Gain – $6,281.94
Total Passive Income – $9,043.72

Again, my passive income has easily surpassed my normal income which is tremendous news. I have my money working almost as twice as hard as I am! And over time this number will only continue to grow (hopefully).

Plan for July 2021

Similar to last month, I will finish bringing my money back from the US and close all my accounts. It has been a great experience for me investing over in the US, but I am definitely happy to have closed that chapter in my life. I am ready to simplify my investments as much as possible and streamline it towards retirement.

I have been talking with a friend recently about a potential investment opportunity, early stages yet but it could be pretty exciting and a good way to generate some side income. Probably should be called more of a side hustle as it will take a lot of work, but the financial return could definitely be worth it. Will reveal more over time as the plans progress and if it comes to fruition.

Will have to start working on my Australian Tax Return now as well, I have a feeling I might owe some money to the ATO, which is not great but not the end of the world. I have started to generate significant levels of passive income so it really is a good sign that my tax bill is increasing, especially outside of the PAYG side of things.