Net Worth Update – June 2018

Half of 2018 down and it is net worth checkup time again. If you are not familiar with net worth, the idea is to calculate how much your possessions are worth if you had to consolidate everything at current value right now. To calculate it, you take everything you own, work out how much it is worth, and add it up. You then subtract from that number anything you owe people (like home loan, car loan etc). That gives you a final number called your net worth.

The last 6 months were not quite as good as I had hoped, but still better than nothing.

Now on to the details…

Net Worth – June 2018 – $1.48m

The total of $1.48m is up only $52,000 from the end of 2017. This ends a streak of 3 months of over $70k.

Part of that is due to some expenses, part due to the second half of the calendar year typically being better, and part due to our shares not performing as well as I would have liked or hoped. It will definitely make hitting the goal of $150k net worth increase a much harder task, if not impossible. Still, we will see how it plays out over the next 6 months.

On to the graphs…

Asset Distribution

First up we have the asset distribution graph:

Still not quite at the 40% level for property, but everything else is on track. Given this is an asset percentage, it is interesting to see that super is growing the fastest! That is good news for the future, but as many people have pointed out, does little to help with the now.

Once again, my moving target is currently:

• 10-20% cash
• 30-50% shares (including both super and actual shares/bonds)
• 30-40% property (this will probably vary quickly as even a deposit is normally a large amount)
• 10% X-Factor investments (this area is currently not currently tracked individually , but is around 3% mixed with shares)

Net Worth Totals

The second graph is the one with the actual numbers and net worth (the black line). Don’t get too hung up over the details, as everything is rounded – we are thinking big picture here.

It was slightly sad to see the black line not growing as fast (or faster) than previous halves. Part of that will be due to the renovations we did without increasing the house value.

I know that there can be and will be volatility in share markets and other pricing, but I think the trending linear line really highlights the fact that a large portion of our net worth comes from savings (which stay more fixed over time) rather than compounding investments/interest (which has a more exponential growth path). Hopefully that will change over time.

UPDATE: due to a problem posting this has sat as a draft for a long time – sorry about that!