Aussie Firebug

Financial Independence Retire Early

MAR 2018 Net Worth $400,104 (-$7,211)

MAR 2018 Net Worth $400,104 (-$7,211)

March was a month of highs and lows. Mostly highs.

I was asked by the ABC to come on to their national radio program to chat about my journey towards FIRE which was pretty cool. They had a financial planner, audio snippets from someone who was in their mid 30s current enjoying early retirement and yours truly. It was pretty cool going into the studio and getting mic’d up and all that. I can’t lie, I was a bit nervous when the ‘On Air’ light came on haha.
The one question that I wish I could have answered again was when the host asked me what I had to give up to be on this journey. I tried to answer it to the best of my abilities but I sorta just stumbled through the classic stuff of not upgrading your phone and eating out all the time. What I wish I had said was “Nothing! I don’t feel like I give up anything. If I want something enough, I buy it”. And that’s honestly how I feel.

I don’t know about you, but when I discovered financial independence and realized the freedom it can grant you. My wants and needs shifted. I honestly don’t feel as though I restrict myself in the slightest. I splurged here and there but for the most of it, the things I enjoy these days don’t cost a lot of money or are free.

The other one was the whole early retirement thing. Everyone has a different idea of what early retirement actually is. I could tell the host was a bit taken back when I said I don’t plan to stop working ever. What I really mean of course is not working a 9-5 job and unplugging from the matrix of being a wage slave. Meaningful work is a staple of life and without it, I’d be miserable. Even the lady that was on the program with me hasn’t really stopped working. They just do a different type of work. She and her husband grow a lot of their food for example. This is a form of work expect is probably has a lot more meaning and satisfaction to it than sitting in front of a computer screen for 8 hours a day.

You can listen to the program HERE.

I also learned first hand that major online publications are not overly concerned about what an article is about, but mainly what headline will be catchy enough for people to click the link.

Let me explain.

I was contacted by the commissioning editor of new.com.au because they wanted to increase their voice in the finance and money space and must have found me from the ABC radio interview. They asked if they could repost my Rent vs Buy article which I happily obliged.

I didn’t know when they were going to repost it, but I woke up one Saturday and there were something like 20 new comments throughout my blog and I was a bit confused before I realised that the article must have dropped.

First thing I noticed was the headline:

News.com.au

LOL. What! That’s not what the article is about.

The comments that followed were also extremely amusing.

 

angry5 angry8 angry4 angry6

Had to laugh about headline written by a kid comment 🤣🤣🤣

You can check out the Facebook comments HERE

I lot of people also commented on the actual article here on my site. They were really getting upset about me using 2.5% as a rate of return for capital appreciation on property. I edited the article and stated a source for property only having risen 2.8% (real rate of return) during the last 30 years. But the old ‘Bricks n Mortar’ crowd was out for blood I tell ya.

oldman

 

I also had another publication republish the same article.

Here was the headline

headline

Sigh.

faceplam

 

 

 

Net Worth Update

So now we have come to the lows for March. ETFs and Super were hit pretty bad to the tune of around $6K. This plus an expensive month results in us just keeping our heads above the $400K mark.

2018 has been pretty lousy for our net worth but here’s hoping for some stronger performances in April!

Properties

 

No changes in the properties this month.

 

 

*DISCLAIMER*
Various data sources (RP data, Domain.com etc.) are used in combination of what similar surrounding properties were sold for to calculate an estimate. This is an official Commonwealth bank estimate and one which they use to approve loans.

ETFs

Down around $3K here. VAS got hit the worst with VEU doing the best (but still down).

Networth

 

FEB 2018 Net Worth $407,315 (+$9,248)

FEB 2018 Net Worth $407,315 (+$9,248)

What a month February turned out to be!

The market had a big dip at the start of Feb which I included in my net worth update from last month because I didn’t get around to writing it until the 7th of Feb.

Now, what separates an astute investor from a novice? An astute investor has a plan and strategy they stick to and don’t let emotions get in the way. One of the worst things you can do if you follow the Bogglehead investment philosophies (which I mostly do), is to listen, read or watch too mubo jumbo market updates/predictions usually published by financial noobs who probably don’t invest at all and are living the consumer lifestyle.

The thing is, these media outlets, be it print, online or TV. All really exist for one reason.

To make money.

What do you think sells more. A headline that says “Markets ticking along fine with no need for concern”.

As opposed to “BIGGEST MARKET CRASH SINCE 1929 INCOMING*written by our intern who majored in finance

A lot of people can have predictions without any accountability. Where were all these experts in 2008? Or 2000 when the tech bubble crashed? I pay no attention to what 99.9% of people say about the markets and neither should you. Because at the end of the day, I subscribe to the philosophy of investing regularly no matter what the market is doing.

To quote John Bogle (the founder of Vanguard)

JohnBogle

Our Lord and Saviour

Which is why we bought in the middle of Feb just after the dip. This turned out to be lucky because of the rebound that followed after. We were going to buy anyway, the timing was just lucky. And in the long run, it doesn’t even matter that much.

 

HUGE news for the entire FIRE community in Australia came in Feb when Pat The Shuffler was asked to write a story about financial independence by the ABC.

Pat

Pat out there repping the Aus FIRE community like a boss

When I first started blogging back in 2015, I could not find another financial independence retire early blog out there for Australians. There were plenty of money and finance blogs, but no specific FIRE ones (to my knowledge).

Fast forward just 3 years, and now we have one of our very own published in one of the major media outlets in the entire country!

If you’re after a good laugh, have a read of the Facebook comments from that article. People cannot wrap their brains around someone being able to live a great life by only spending $40K a year.

There was actually another dude who wrote a response piece to Pat’s article that was published by the ABC too. I can’t even begin to tell you how factually wrong it is but it’s another example that FIRE will never become mainstream because normal everyday people just don’t get it and won’t even entertain the notion of cutting down their spending habits.

I did an improv podcast with Pat about the whole article the other week to get his thoughts. I haven’t released it as a proper podcast yet (I just wanted to get it up quick).

The FIRE movement must really be making waves among the Aussie journalists because Aussie Firebug himself was actually contacted by one to contribute to a story that she was writing about the community. I actually had already responded to an online request from another media outlet looking for people involved in the movement but it was nice that one journo reached out.

Long story short, I made a few paragraphs in Sydney Morning Herald along with Ms Frugal Ears and Get Money Wise.

Pretty cool right!

I can now add that ‘As seen in’ cool little graphic on the front of my blog even though it was only a few paragraphs 🤣.

 

Net Worth Update

Back over the $400K mark 👊👊👊!

Decent bump this month mainly due to saving well and the markets bouncing back. We made a nice little gain by buying on the dip too.

We went a little over our budget for the month but nothing too major.

Properties

 

No changes in the properties this month.

 

 

*DISCLAIMER*
Various data sources (RP data, Domain.com etc.) are used in combination of what similar surrounding properties were sold for to calculate an estimate. This is an official Commonwealth bank estimate and one which they use to approve loans.

ETFs

The ETFs bounced back after the first week and a bit of Feb!

The recovery was almost instant, but it made me wonder how I would go to see those sort of drops happen for an extended period of time.

I know the strategy that you shouldn’t sell in a bear market. But it will be interesting when push comes to shove to see how both Mrs FB and I respond mentally when we go through a proper crash.

Almost looking forward to it 😜

Networth

 

JAN 2018 Net Worth $398,066 (-$2,106)

JAN 2018 Net Worth $398,066 (-$2,106)

2018 has not been kind.

 

Firstly, this is the first time since I’ve been posting our net worth updates that we have been in the negative two months in a row. I secretly knew that the run we had in 2017 was not sustainable but I was hoping that we could at least start to make some gainz at the start of the new year after taking a pretty hefty hit in December 2017.

I knew it was going to be a big month expenditure-wise, so I checking pocketbook religiously but it still got out of hand a little bit. It was like sort of like when you’re fully aware of the danger ahead but you can’t do anything to stop it from happening.

EBike

We had our most expensive month in a long time! Pre-booked a few holidays, went out a lot (such nice weather), and there were a few one-off expenses like new tyres for the car.

Mrs. Firebug is a teacher so the school holidays between December and January are always a bit more expensive because we’re out doing stuff and being social.

It didn’t help that I’m writing this update after our portfolio just got smashed by the biggest day drop in sharemarket history. So a few things factored in to explain this months drop.

I causally messaged Mrs. Firebug this on Tuesday afternoon right after we had figured out what we wanted for dinner.

MarketDrop

She asked if we should buy more during this drop.

I shed a tear of joy

 

Net Worth Update

 

If one image could summarise nearly all our assets classes during last months it would be this one.

down down prices are down

You can almost hear the signing *shudders*

Sooooooo basically we got smashed on the shares front. Property stayed the same. Cash reserves went down paying for everything and Super was around the same too.

The market has already bounced back again today as I’m writing this. But I’m not including the updated stats from today in this months update. Next months should have some decent gains as I’m already up nearly $3K from the losses and we dumped in some money during the downturn so we should see a decent increase next month.

So sad to fall below the $400K mark 😭😭😭

Properties

 

No changes in the properties this month.

 

 

*DISCLAIMER*
Various data sources (RP data, Domain.com etc.) are used in combination of what similar surrounding properties were sold for to calculate an estimate. This is an official Commonwealth bank estimate and one which they use to approve loans.

ETFs

Down almost $8K during January!

This has been our first real test of a decent drop, but I believe we responded correctly and actually bought more shares during the dip. Who knows where it goes from here but we are being disciplined and sticking to our monthly schedule of dumping $5K into ETFs come rain hail or shine.

It was a bit strange to see so much of your money just vanish like that though.

But you only make a loss if you sell!

Networth

 

December 2017 Net Worth $400,877 (-$11,746)

December 2017 Net Worth $400,877 (-$11,746)

The last net worth update for 2017 ends with a… whimper.

 

Down nearly $12K!

Scared_Homer

 

A few things happened in December.

 

Firstly and most damaging to the net worth drop this month was some repair work (more about this to come) that was done to one of my investment properties.

 

I am covered by insurance but I had to fork out just over $10K to cover it before the insurer could refund me.

 

This emphasises a point I always tell people who are thinking about investing in property. You need a big buffer when things go wrong. Even with insurance, it can be hard sometimes to cover yourself until the insurer comes to the party. That’s why we have such a big cash buffer. Having 3 properties has the potential to have big expenses.

 

The other big one for December was a holiday that we booked for August 2018. We paid for everyone flights because it was just easier that way. They are going to pay us back their share so that’s probably another $1.5K-$2K.

 

Did everyone have a good time over the Christmas break?

 

Between my own job and Mrs. Firebug’s job, I went to about 5 Christmas break up parties lol.

 

My job had a social club one, an official one that was on a Thursday (wtf were they thinking) and we had another unofficial one at the pub on the last day).

 

So between all the parties/birthdays/Christmas and new years eve festivities.

 

It’s safe to say that the budget was blown out just a little.

 

Just_A_Little_Bit

 

 

 

 

It was a relatively quiet Christmas break this year. The best part for me was there was minimal traveling.

 

Nothing worse than having to spend half of Christmas day driving to and from a destination that’s >1 hour away. We stayed local for Christmas and new years which was awesome. It meant I could ride my electric bike to each location within the town.

EBike

The Beast

One of my favorite things to do when it’s good weather is to ride my E-Bike all over town. Puts me in a great mood and makes traveling fun.

 

We started 2017 with a net worth of $258,857 and ended it at $400,877 meaning we added $142,020 bucks! 😱🤑👊

 

Bring on 2018!

 

Net Worth Update

 

Super had a very good month over December. We added around $4K for both our accounts combined. I’m not sure if this is because of the markets doing well, a dividend payout maybe, or our employers adding in an extra Super pay (we had three paydays at the end of November instead of the normal two).

 

Our cash savings took the biggest hit due to a repair bill and holiday that was booked and ETFs didn’t really do much for December, only moving up about $350 bucks.

 

Properties

 

No changes in the properties this month.

 

 

*DISCLAIMER*
Various data sources (RP data, Domain.com etc.) are used in combination of what similar surrounding properties were sold for to calculate an estimate. This is an official Commonwealth bank estimate and one which they use to approve loans.

ETFs

Not much happening here. VAS was the only ETF that went up during December with the other two (VTS and VEU) going down. About $350 all up for the month

Networth

 

November 2017 Net Worth $411,918 (+$16,574)

November 2017 Net Worth $411,918 (+$16,574)

It’s beginning to feel a lot like…

Christmas_Marketing

Ahhh yes.

 

It’s that time of the year again.

 

When every conceivable marketing tactic known to mankind is deployed among the general public in hopes that you spend money on shit you don’t need because of some dude that was born a coupla thousand years ago…

 

And what about Black Friday the other week? Isn’t that an American thing for Thanksgiving???

 

I mean really! Do they honestly think we are going to spend even more when Christmas is just around the corner!

 

Ahhh haha umm yeah about that… We were sucked in harder than a tornado.

 

Well, not exactly but I did treat my beak to a new pair of Nikes because the discounts were just insane.

 

If you haven’t already, check out Oz Bargins. It’s basically a site dedicated to finding all sorts of deals within Australia. I bought my shoes that were on sale for $112! A pretty good deal I thought because I had been keeping my eye on these shoes for a few months now. I finally bit the bullet to buy and the site took another 40% off the already reduced price at checkout!!! Ho Ho Ho, Christmas had come early.

 

Mrs. FB was a savage over black Friday with the deals too. I had an RDO on the following Tuesday and the parcels just kept rocking up. Had around 4 deliveries before 10 AM.

 

A huge milestone for us this month, hitting and surpassing $400K! Woohoo

We hit it pretty much at the start of the month after being so frustratingly close last month.

 

It’s been insane the amount we have been able to add to our net worth this year. I had a rough estimate that we would be nearing $400K by the end of 2018. So to hit it at the end of 2017 is incredible.

 

We had an extra payday this month too which added another couple thousand to the pot.

 

Now we just have to get through the festival season with one more month to go before beginning a new year ?? where has the year gone???

 

 

 

Net Worth Update

 

Another stellar month for the stock market with both our ETFs and Super gaining healthy amounts. We had an extra payday in November too which bumped things up. I had an insurance claim come through for one of the properties after there was some damage caused by a tenant. It’s most likely all going to be spent so not really adding to net worth but the cash came in so I’m going to include it for this month at least.

$3K Super, $4K from an insurance claim, $3.3K ETF bump and around $10K was earnt.

 

Properties

 

No changes in the properties this month.

 

 

*DISCLAIMER*
Various data sources (RP data, Domain.com etc.) are used in combination of what similar surrounding properties were sold for to calculate an estimate. This is an official Commonwealth bank estimate and one which they use to approve loans.

ETFs

Another great month with an additional $3.3 bump in cap gains for the ETFs.

Networth

 

October 2017 Net Worth $395,344 (+$13,208)

October 2017 Net Worth $395,344 (+$13,208)

Pretty quiet month for October.

 

Had one major expense pop up out of the ordinary which was having the cats shaved.

ShavedCat

*Not actually my cat but basically the same (man boobs and all)

We have two cats who must be around 2-3 now but left them at M.F.(Mrs. Firebugs) parents house when we moved in together. It was just going to be too hard to move them when they were so settled and I’m pretty sure that the parents love the cats more than their own children (not kidding).

 

I once witnessed Mrs. Firebugs dad come home from work during the day in summer to turn on the air conditioning for the cats (not kidding) and leave. This is the same man that yells when a light is left on too LOL!

 

Anyway, the cats need to be shaved once a year which turned out to cost $550 for two this year  ???

 

I floated the idea of just buying two new cats every year to M.F. but it didn’t go down so well…

 

We still managed to come under our budget for October through which was a miracle.

 

 

Did everyone have good October returns wise for their shares?

 

We sure did.

 

It was our best month ever in terms of returns. We made around $5K from capital gains during October ????

 

Putting us up to around $118K worth of ETFs (we bought another $5K lot this month as per usual).

 

I recorded a really interesting podcast with Ms Frugal Ears in October.

 

Some of the topics were pretty deep and I’m glad Serina was brave enough to open up about sensitive issues, particularly what happens after a divorce and the power that comes with knowing your financial position.

 

I reflected on Serina’s story after the podcast and thought that if I ever have a daughter, how important it will be to make sure that she knows her financial position at all times and what the power of having your own money enables you to do…and not do.

 

Reading all the allegations about Harvey Weinstein can make you feel pretty sick pretty quickly. Even if it’s only half true.

 

I can’t think of many more vulnerable positions than an aspiring actress trying to ‘make it’ in Hollywood. You read countless stories of people in the entertainment industry often working for pennies trying to chase their dream of making it big. And this guy is one of the head honchos that decides who gets the role and who doesn’t.

harvey-weinstein-sexual-assult-allegation

Could you imagine the emotional roller coaster it must be for these girls to go meet him thinking they are about to be offered their first big role only to have him force sexual favours on them? It really is disgusting and an abuse of power to the highest degree.

I know Harvey Weinstein is only one of many though. And unfortunately these people exist everywhere in every industry.

 

I would hate to think that some of these victims couldn’t turn down the unwanted sexual advances simply because they needed the job to survive. A positions nobody wants to be in, but unfortunately some are.

 

Net Worth Update

 

$1.5K bump from Super, around $6K from savings and another $5K from the ETF bump bring us ever so close to the $400K mark!

 

Properties

 

No changes in the properties this month.

 

 

*DISCLAIMER*
Various data sources (RP data, Domain.com etc.) are used in combination of what similar surrounding properties were sold for to calculate an estimate. This is an official Commonwealth bank estimate and one which they use to approve loans.

ETFs

Huge month for ETFs in October. About a $5K increase!!! ???

Networth

 

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