How in Gods name is it the end of June already?
Each year seems to be going quicker and quicker I swear.
There is only one thing of concern as we approach the accountants Christmas…
Ah yes! The fantastic, delicious 
and awesome tax return.
Get your franking credits and negative gearing hats out to take a little back from the ATO.
This will be my first year doing a return with ETFs so I’m looking forward to seeing what is involved. Franking credits are a great way to reduce your taxable income to claim more come tax time. I hold one ETF that has franking credits and that is ASX: VAS.
VAS is made up of Australian companies which makes sense since franking credits are designed to stop double taxation.
I don’t get why people put off doing their tax return. Or some that don’t even do it at all (which is illegal).
You’re getting money from this people (sometimes you owe money but most don’t)!
I always to try to complete my tax return asap so I can get the $$$.
We had a pretty good month to finish the financial year with the only real big ticket expense car rego and insurance.
It also worked out the June was a triple paycheck month which meant we received 50% more income which pushed us over the $10k mark.
Speaking of the $10k mark. This month is the 7th month in a row we have added at least $10k or more to our net worth!
We should be able to add around $6k each month from pure savings given our income and savings rate. So the last 7 months have been well and truly above our norm.
But we ain’t complaining!
Net Worth Update
Extra pay week, good savings, a little Super boost and I think ETFs stay the same if not went slightly down a little. We did buy another $5k chunk of ETFs this month as per usual.
Properties
No change in any of the properties for this month yet again. No movement for a while in this space. Could property be starting to cool in Australia???
*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
ETFs went down around $1k this month 🙁 VAS was the only holding that actually made money with VTS and VEU losing value.
Networth
Good on you man
I love reading this shit and running a little competition in my head between you and I. I know it’s not a competition but I can’t help it!
It would work better if I moved to end of month reporting instead of mid month reporting, but whatevs. My next one ain’t looking great due to the lull in the market. I will be luck to break even from last month.
Anyway keep it up. Race to a million?
Healthy competitions a good thing Pat!
Race to a Mil? You’re on ?
But I feel it’s slightly unfair because this net worth is a combination of both Mrs. Firebug and me?
Two incomes vs one seems wrong
I could combine my website tracking with Steph, which will happen eventually. But only when she is more comfortable with it. That will put us almost neck and neck at the moment.
I am still completely reluctant to include my super account in my net worth though.
Either way I think we can each race to a Mill under each of our own definitions of net worth and at some point my wild card “Steph” will be added to my net worth page, then it will be on like Donkey Kong.
Haha great.
Why no Super in your net worth?
Super is a crucial part of my plan towards FIRE.
I have seen your calculator, it just comes down to a deep distrust of what will happen to my access to super over my lifetime. Also because once money is in super, you no longer really own that money.
I wrote a pretty comprehensive post on it https://lifelongshuffle.com/2017/03/29/can-really-trust-superannuation/
Ah ok, fair play then.
I’m a little bit more optimistic that I will have some sort of access to it by the time I’m 65. But who knows right?
That’s fantastic year on year progress, more than $100 k! Be interested in how the ETF tax story goes, as I am thinking of investing my distributions in one of those ETFs. Unfortunately with quarterly tax payments, end of the FY doesn’t feel quite the reward it once did. Have you been subject to those? Agree with the general point though, why would you allow the tax office an interest free loan if you are owed?
Looking forward to more podcasts as well. 🙂
Podcasts are coming!
Quarterly tax payments? What are those?
The ATO asks you to do quarterly PAYG instalments when you have annual investment income above $4k and you’re likely to owe tax at the end of the year (https://www.ato.gov.au/General/PAYG-instalments/). They want to get their hands on your money now, rather than waiting until you do your tax return.
Well there you go.
I had no idea. Thanks for sharing
Nice progress. I think property is starting to cool and will come off the boil for some time now. I am no expert just what I am seeing. We just sold a place and plan to sell another in the next couple of months before the APRA restrictions really start to bite for investment loans.
Making a bit more sense for us to move to ETFs as even without a mortgage on our properties the rates, strata, water etc are a massive cash flow killer.
Keen to watch Pat and your race to a million!
Yeah, I think you’re right Cath. APRA is really trying hard to curve investor enthusiasm without bursting the bubble in Melb/Syd.
I think this is a good move, but it could be too little too late. If something big does happen. There may be some killer deals waiting to be snapped up!
I’m in property for another 10-15 years though so a bust now or soon doesn’t worry me too much. It’s the cash flow as you have mentioned that’s important.
Go Aussie Firebug, you guys are killing it. This year will be my first tax return with Vanguard (and the first year in at least a decade I’m attempting to do my tax return myself). I can’t compete in the race you didn’t even know you were having with Pat, but I’m cheering from the sidelines. And Pat – you’re going to have to hustle that shuffle to cross the line first!
Haha thanks for the support. Healthy competition is a good thing!
That is an amazing increase over the last month and few months!
As someone new to this, do you have anywhere that explains how you come up with your Net Worth? When you look at properties – are you going by valuation minus mortgage debt, and then treating that as a positive? I am not sure how to treat my property as I am living in it and not planning to sell anytime soon.
Much appreciated!
Hi mate.
Net worth is calculated like this:
A-L =NW
Assets minus liabilities is your net worth.
For my investment properties, it’s valuation minus debt = equity.
Now, what classifies as an asset and liability may differ between people.
I don’t consider a house you live in to be an asset. So I keep it off my net worth calculations.
But some people list the equity in their home as an asset.
It’s really up to you if you want to add it in.
At the end of the day, it’s whatever is easiest for you to understand your current financial position.
I really enjoy these updates, I’m cheering you both on!
You’ve inspired me to do a monthly checkup with our net worth as well.
We are a little slower with the savings rate, as we have 4 children and one main income, but we are doing jolly well considering…
It’s a worthy goal!
Hi Jess,
Monthly checks are great. I guarantee you that by tracking your net worth monthly, you WILL improve it move so than if you didn’t track.
4 kids, wow. That must be a handful.
Good luck building your wealth!
I am with Mrs ETT, sitting on my side of the fence and cheering you guys on in this race. I am floored by the increase you have had with your net worth and you have inspired me greatly to keep on pushing!
Hi Pia,
We have had an epic start to 2017. I don’t expect this rate to continue at all!
I’m happy I can provide any type of inspiration. We all need some from time to time.
Net worth nearly going vertical mate! OH YEAH! DUFFMAN LOVES THOSE SAVINGS!!
Haha gotta love it.
We’re in the ‘drag your feet’ crowd this year with tax, as we will have some CGT to pay from property sale.
It’s all building very nicely 🙂
DUFFMAN CAN’T BREATHE …FROM ALL THE SAVINGS…OH YEAH!
God I love The Simpsons haha.
2017 has been crazy for us.
Almost expecting a huge crash because things are going too good lol
Excellent stuff, keep up the good work. Always great to see you progress. Keep up the awesome stuff!
Will do 🙂