March Update

Ahoy! Apologies for the late post, work has been full on. Since February I’ve travelled 9000 kms for work and have had little time, so this one will be a short update on how we are tracking this month and some quick thoughts.

Now lets look at the numbers:

Forecast Mar
Consolidation Loan  $ 8,711.50
Credit Card A  $ 0
Credit Card B  $ 5,027.11
Credit Card C  $ 5,258.11
Total  $ 18,996.71

 

Actual Mar
Consolidation Loan  $ 14,242.89
Credit Card A  $ 0
Credit Card B  $ 5,000.00
Credit Card C  $ 5,300.10
Total  $ 24,542.99

Still a gap between our revised forecast and current actual, which at this point I don’t see us closing as we are now moving house to something slightly larger and more accomodating to our needs. We feel accomodation wise we’ve lived quite frugally over the last year, in a tiny one bedroom apartment, and it’s time to move on from this place now our financials are substantially better than they were (it was before I began tracking but we probably had around $60k in consumer debt when we moved in here in May 2018). Our new residence is only costing us an additional $120 a week, and is substantially larger. We feel the quality of life improvement will make us happier overall, and it should open up my wife to do more over time also.

We are still in front of our original forecast by $7,685.64 as shown by the graph below:

 

Screen Shot 2019-04-02 at 7.32.24 pm.png

It’s great to see the slope of that orange line increase back up to where it was heading before! However, next month I am not expecting much movement due to the move, which I’ve come to terms with as it only delays us getting out of debt by 4 weeks.

Net Worth
The path to financial independence is long and treacherous, but it has always been refreshing watching us get wealthier each month. I used italics on wealthier there because it doesn’t feel like it on the day to day grind. But sure enough, sitting down at the end of each month to review our progress, it is amazing just how much you can move the needle in a month. This month we increased our net worth by $5,151.41 to $41,631.70, that’s $171.71 every day. The maths is simple, keep this gig up for long enough and come out on top.

Here is the progress visually:

Screen Shot 2019-04-02 at 7.48.29 pm

That slope is looking sexy! This makes me very excited to finally get out of debt, start investing outside of super, and really accelerating our progress.

One thing I have been pondering is whether we should be counting my HECS debt in our net worth calculation. One side of me says it should be included as it is technically a liability, the other side thinks of it as simply an additional tax expense. I guess my rational is that it is waived in the event I pass away, and that our budget is calculated on my post tax income (which includes the additional withholdings for HECS). What are your thoughts?

 

 

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