Welcome to my May 2017 Net Worth Report!
Incidentally, it’s also my first ever Net Worth Report.
There are lots of things happening in FIER land, with a few projects underway which should help with increasing my passive income and net worth once complete.
Most people would rather their bare ass to go viral on a Paris Hilton sex tape than for the whole world to see their net worth. I’m pretty much the same, but in the interests of transparency and accountability I am baring all (finances, not my white ass).
I’ve seen a few other people do a similar thing, and I thought it was pretty cool. Being transparent with my audience is incredibly important to me; so there won’t be any embellishing of my Net Worth, and you, the reader, can get a true indication of what works and what doesn’t as I win and fail miserably along the way.
These Net Worth Reports serve two main purposes. First is to hold myself accountable to continuously increase my Net Worth. Having my Net Worth posted in a public space encourages me to try new things continuously and experiment to increase my Net Worth and to report on what I learn. Secondly, it allows you guys to learn from my wins and losses along the way.
Many of the things I try (hopefully) will be winners. Many will be failures. Either way, they will serve as great lessons for both of us on our way to Financial Independence. But lessons are only part of it. Putting it out there forces me to push through these failures and read, watch, listen, learn, and put these lessons into action. Taking action is the most important part.
Important Things Going On in May
Well, since this is the first ever Net Worth report it may be worthwhile to briefly describe a few projects that are currently in progress.
First of all, I have been busy blocking off the upstairs area of my house to allow for a Housemate to move in with me. Although I will not realise any real gains in Net Worth immediately from this project, the improvements in my house (including running power to my garage) will increase the my Net Worth, as it will increase the value of my property. In addition, increasing my passive income (from either a House Mate or Air BnB) will allow me to save more and increase my Net Worth by a little bit more month-by-month; so it’s a long game play.
This is the only major project that was active last month; I’m sure they will get bigger and crazier as we go along.
Daily Expenses Account = $114.56
Splurge Account = $639.09
Smile Account = $100.00
Longer-term Expenses = $305.73
OffSet Account = $50,764.38
Host Super = $51,529.05
My House Value = $259, 000
HECS Debt = -$33466.45
Mortgage = -176,190.46
So, adding all of these up I have a net worth of $151 252.
However, if I am really committed to retiring early (i.e. what the blog is about) I feel I would be mistaken to include my super account in these calculations. Already we cannot access the money in our super until close to retirement age, and if the current trend of increasing the retirement age is to continue, one could only expect that the Super Maturation (i.e. when we can access the money in our super) will only increase accordingly.
So, taking away what is in my super account, I have an adjusted (or accessible) net worth of $101 266. I will continue to report both of these figures in each Net Worth report.
So, we have a starting point.
Plans for the next Month
I have a few plans in stall for the next month. One is to finish these renovations so I can welcome guests into my house and start earning an income from my largest asset (my house). In addition, I will be exploring some ‘hacks’, investment strategies, de-cluttering and selling things that I don’t use and I don’t get value out of. Hopefully you will get some value out of these projects that are coming up.
Thanks again for your support, and good luck with your own endeavors of early retirement and financial independence.