I share these net worth updates to stay accountable, seek feedback on our strategy, and prove that achieving financial independence in Australia is feasible without relying on extraordinary luck or wealth. The table below tracks our journey from $36K in debt to reaching our goals. 🔥
July was still very much about the baby bubble, with not much happening on the personal front.
Baby Bug #2 is teasing us with the occasional stretch of solid sleep, but we’re still waiting for the full night to land.
I’m starting to really get why people used to say that coming into work felt like a holiday from the chaos of home life. When you’re working on projects you enjoy, in an environment that energises you, it hits differently.
Even though I’m home helping out a couple of days a week, it’s been nice to duck into the co-space for a few hours, throw on the noise-cancelling headphones, and get into a zen state with a fun problem.
What’s everyone listening to lately? On my current Spotify rotation:
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Don’t Tap the Glass – Tyler, the Creator
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Let God Sort ’Em Out – Clipse
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SWAG – Justin Bieber (don’t judge, it actually slaps)
Net Worth Update
Yuuuuuuge increase this month.
In fact, July just clocked in as the biggest monthly increase in AFB history.
The surge came from a combo of a few big invoices hitting the account for the business, plus a revaluation of our PPoR after switching lenders.
Add a strong month for shares and BTC, and we’re looking at nearly a $150K increase 🤯.
To put that in perspective, it took me four years to go from $36K in HECS debt in 2011 to $164K in net worth by July 2015.
Four bloody years of hardcore saving and investing.
Now we’ve added the same amount in a single month, and I’m working far less than I was back then.
This is the power of investing. If there are any youngins out there paying attention, lock this in.
The first 5 to 7 years of your investing journey can feel like a slog. But eventually, compounding takes over, and it starts to feel like money is working harder than you ever could. If you’ve set things up properly, you’ll be making serious gains with far less effort.
I had to double-check the numbers this month. I knew it was looking good, but damn. I owe my younger self a beer for the life I’m living now. It’s all been built on the foundation he started 15 years ago.
Feeling extra blessed this month.
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*Expenses include everything we spend money on to maintain our lifestyle. We do not include paying down our PPoR loan as an expense, only the interest
*Investment income is simply 4% of our FIRE portfolio divided by 12
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Shares
The above graph was created by Sharesight
We didn’t buy any shares this month.
Networth
How do you get your PPOR valued?
He changed lenders. They re-value when you do this.
Correct!
What a month especially with the cash inflow!! Interesting to see how stable shares have been since April.
May, June, July have been very healthy after the slump in March, April.
So true about compounding. Without tracking it monthly it would be hard to get your head around. Everything feels the same but suddenly it starts to take off. I remember hearing that if you were trying to accumulate $1 million and were regularly investing then when you hit the ~100k mark you were a quarter the way there and at ~$300k mark you were halfway there. This article dives into the numbers. https://www.fool.com/retirement/2017/10/29/you-may-be-closer-to-1-million-than-you-realize.aspx#:~:text=If%20you%27ve%20saved%20up%20between%20%24250%2C000%20and%20%24300%2C000%2C,lot%20closer%20than%20it%20looks%20at%20first%20glance.?msockid=366048a545ab61f6295c5ded44996040
Does the same apply if you add an extra 0?
So if you have 1m ur a quarter way to 10m and half way there if you have 2.5-3m?
It would change as if you’re contribution level stayed the same. You would contribute relatively less but you would get more growth from your compounding assets.
Awesome month, and the gains for you I would say haven’t come from the stock market this month directly. But by being financially secure to start your own business’s and to increase your exertion income whilst also creating jobs that you love. It’s absolutely bought you the time with family and the space to try your own thing.
BTC shows a fall of $542, not a gain of $8K.
💯
The business exists because the portfolio gave me the freedom to take a financial risk without putting my family at risk of ending up on the street.
The BTC difference is frustrating because its price moves by the minute. I logged our position on 1 August when the markets were closed, and BTC was up $8K at that time. But by the time I took the screenshot, it had already shifted significantly.
The screenshot you uploaded is for the month of June, mate.
Would love to see the portfolio movements for the month of July.
Good spot. I’ve updated it now
It’s awesome work mate and a great inspiration for all to follow, absolutely amazing that you got onto this in your 20’s, you were way ahead of the game and as you say, thanking your past self all the time : )
The portfolio is too heavily weighted in Australia and so portfolio is not returning as well.
If you’ve read his past blogs, an Australian weighting is intentional for the dividend stream paid into his bank account. Like me, he said he found it harder to sell shares when income is needed and hence the Australian weighting to avoid having to do that,
Call him Big Poe
Stop Playing With Me OFWGKTA
Did you find the bank’s revaluation came close to online services like realestate.com.au or onthehouse.com.au?
Yep. Pretty much on the money
Can you shed any light on the cash invoice from the biz?
“owe my younger self a beer” – I don’t think we acknowledge this enough, well done, truly deserved.
As for, what am I listening to?
https://youtu.be/1PjVKoEeSXg?si=jF2CsFrUKK6ws8w-
Trying to grow a music career funded by my FIRE empire XD
Rock on Tommy🤘
What did you wanna know about the invoice mate?
Hi
I am wondering how anyone manages to keep expenses for a family of 4 (outside of the mortgage) so low at approx $4-5K. My home insurance alone is 10% of your monthly outgoings. Is this common amongst others reading and following along? Dual Income Adult kids.
Yes, I am wondering the same. We watch our expenses, and it is nerly double that.
2a2c (under 12) and our expenses are similar. We live in WA, buy our lunches but otherwise eat in. Kids are in Public Schools with a couple of extra curricular activities a week each. Nothing else of note.
In FYE25 we spent 55k, 42% Food & Drink, 11% education, 11% leisure, 10% home maintenance, 8% transportation, 7% utilities, 5% financial, 4% medical, 2% clothing.
$55k for a family of four is incredible!
Especially if you don’t have babies. I’ve been pleasantly surprised by how little babies actually cost, though I keep hearing expenses climb as they get older. Something else to look forward to.
We’re on track to be closer to $70–80k this year.
My friends are investing in VGS. It is basically the biggest 1k companies. In the world I note you have VTS and VEU, these all have less fees than VGS. I would be interested to see what you think of VGS. Also VGS reinvests income from the holdings. VTS has higher returns to VGS over five years but not VEU.
Honestly, Aussie Firebug should have as many kids as possible — not just for the family tax benefits 😉 but because if anyone’s going to raise a generation of mini FIRE masterminds, it’s you!
Australia and much of the developed world is facing a fertility crisis, with birth rates well below replacement level. That means fewer future workers, more strain on public services, and a shrinking tax base — which, ironically, puts more pressure on our FIRE plans in the long run. Malcolm and Simone Collins of (highly recommended podcast) Based Camp have been ringing the alarm bells on this — and they’re not wrong [https://basedcamppodcast.substack.com/p/the-truth-about-falling-fertility].
We need more financially literate families raising value-driven, self-sufficient kids who actually understand money. So why not scale the Firebug dynasty to 10? The world needs it — and your spreadsheets would definitely prove it’s feasible. 😄
Thanks for sharing the podcast! Ten kids might be a stretch for me, haha, but I get the bigger point. I agree that we need to place a higher value on family within society. Financial success is great, but raising a family should be seen as one of the most meaningful and rewarding achievements anyone can have.