It’s beginning to feel a lot like…
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! 
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
I’m always on OzBargain, such a great website for finding deals in Australia which seem harder to do here than if you were in the USA.
Otherwise, well done on your increase, you are always putting up great numbers that are excellent, keep up the great work! Loving these updates. Cheers
I only discovered it within the last few months! I’ve obviously been living under a rock.
Hi there. Really enjoy reading your monthly updates, it spurred me to start our own net worth tracker!
Would love to know; if you were a home owner would you include your principal residence as an asset?
Glad you’re enjoying the monthly updates 🙂
I do not consider a PPOR an asset. We want to own a home in the future for stability. But when that time comes, I won’t be including it as part of our net worth because I don’t consider it an asset.
The reason being, that it doesn’t make money but costs a lot to hold. I would classify that as a liability.
Hey Firebug, can you provide any more details on how you get your investment properties valued each money? I have an IP with NAB and when I enquired about ask them to value it so I can track its worth they were unable to do so.
I seem to recall it was something your lendor offered for you?
Cheers
Hi Ryhs,
Commonwealth Bank just does it for me mate. They update every quarter or so what they believe the properties are worth and I just use that, even though I think they are worth a lot more (as does every property investor)
Typo, I meant each month* not each money.
if you use realestate.com.au that gives you some insights
Who do you have your Super with mate?
Nik
Vision and Vic Super.
This is something I need to look into though, expect an upcoming article about it.
Hi Firebug
Just wondering, is your Cash holding, actually Cash eg Term Deposits etc.
Rhys
I know CBA has property valuations on their internet banking site, which they periodically update.
Cheers
Sure is! Everything is in offsets. Very liquid in case of emergencies
Hi Firebug,
I wanted to get your thoughts on VDHG compared to a VAS/VTS/VEU.
1) Are you looking to transition to VDHG or stay with the VAS/VTS/VEU mix?
2) is the lower MER VDHG > VAS/VTS/VEU worth it?
I have Vanguard booked to chat about this very topic in Jan. Keep an eye out for the podcast.
1. Not at this stage. BUT! If anyone is asking me what ETF I would buy if I was to start over with hardly any financial knowledge…I would be going with VDGH for sure! It’s the one-stop shop holy grail for Australia ETF’s!
2. I don’t think it is but the simplicity for newcomers cannot be overlooked. Especially the whole 8-ben forms for VTS and rebalancing etc.
Hi. Can you tell me what VDGH is? Google is not helping me. Cheers
And any suggestions on good net worth trackers? Apps?
Hi Laura,
I’m going to do an article about the new ETFs (VDHG)
You can check out all the ETFs that Vanguard offers HERE and the VDHG specifically HERE
In a nutshell, it’s basically one single ETF that diversifies you completely without the need for rebalancing.
The issue beforehand (a very small issue I might add) was that to get Australia and worldwide exposure you needed to buy multiple ETFs and rebalances accordingly. This ETF solves that issues. It’s pretty idiot proof.
Full write up is coming 👊
Net worth trackers…Ahh.. I just use google sheets (excel). I did try to find one a few years ago but wasn’t happy with any so I made my own 🙂
quick question. what is the reason for you to keep track of networth since you cannot cash in the properties unless you sell them? i personnally see 40% difference when i dont take into account my properties
Hi,
Keeping track of my net worth for me is about accountability and motivation.
The properties provide cash without selling through rent and equity. Investment properties should be included in everyone’s net worth.
Hope that answers your questions.
Cheers
Hi bug. I love your blog. Do you do dividend reinvestment on your Etf’s? Thanks
I didn’t originally because I wanted to see the dividends hit my account. But I might switch them on now for the ETFs that offer it.
Any opinions on the new ETF products from Vanguard such as VDHG? Would these an easier option to keep a balanced portfolio whilst only needing to invest into 1 ETF?
New ETFs are awesome!
I’m doing a full write up about them soon so keep an eye out.
The simplicity of them is very very attractive to financial noobs that want to get in the game.
Hi Bug,
Great blog mate! Very empowering for a beginner invester like myself.
I noticed that a good portion of your porfolio is invested in 3 ETF’s.
So I just wanted to ask, what are your thoughts on LIC’s? AFIC and Argo etc.
And do you think there good for the purpose of diversification? Because I’m thinking of creating a porfolio of 33% in super, 33% in ETF’s (VAS & VDHG), and 33% in LIC’s (AFI & ARG). As a newbie your thoughts would be greatly appreciated 🙂
Hi Shane,
Thanks for the kind words 🙂
Some LICs like AFI are very similar to ETFs such as VAS. The companies you have mentioned (AFIC and ARGO) have very low management fees which are key when investing in LICs or ETFs.
If you look at what actually makes up the LIC AFI, you will notice it is very similar to what makes up VAS.
The differences are very minor and they should have relatively the same performance.
At the moment, VAS has had the superior return over the last 5 years (can’t do a 10 year comparison because VAS hasn’t been around that long) with a total return of 10.21%.
Whereas AFI has had a total return of 9.06%
But AFI has 100% franked dividends whereas VAS does not. Again, very minor differences.
They are both great and will have similar results.
You can’t control what the market is going to do, but you can control how much you pay in fees.
I can’t comment too much on your diversification without knowing your entire financial position and goals. But it looks Ok to me. Maybe a little top heavy for Australian stocks but maybe you want that? VDHG is one I like and would say for noobies to check out for sure.
Hope that helps mate
That helps massively. Thanks mate!