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. 🔥
Not a lot to report for this month so I’ll just be posting the basics.
Net Worth Update
The markets hammered our portfolio in August with Share and Super being hit the hardest.
Honestly, I’ve been quite occupied throughout August, so I haven’t been keeping a close eye on things. Nevertheless, as we begin to withdraw from our portfolio, these somewhat significant downward swings are stinging a bit more.
All good though. My business signed another client in August, so there should be a big PO coming my way in the coming months.
*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
We hardly left the house in August which was reflected in our low expenses.
Once we get the $$$ from the upcoming PO, I might consider buying more shares, although I find myself leaning towards reinvesting the funds back into the business. Both options are quite tempting.
Growing the business seems way more fun, though haha.
Question: Why do we have A200 & VAS?
Answer: We started buying A200 in August 2018 after Vanguard didn’t lower their MER to match A200. Practically speaking, A200 and VAS are almost identical so it makes sense to go with the lower MER. As an added benefit, I like the fund diversification between Vanguard and Betashares. We decided to hold both after making the switch since it doesn’t have any impact other than some extra accounting work once a year.