money
State investment would encourage business investment
News that Heathrow airport has changed ownership once more so that Saudi Arabia’s sovereign wealth fund will get a £1bn stake and Ardian Private Equity will take up to 15% of the whole, suggests that foreign investment in the UK is doing alright… But should we be chasing foreign private investment as Sunak did in... Read more
Money Update 2023
Is the rock getting lighter or am I about to drop it again?
It has been over three years since I posted about money. There is a reason for that. Like many of us I have an uncomfortable relationship with the stuff. I did a series of posts to try and work it out. I was unsuccessful.
A thought about this, that occurs to me now - I think it moral to be open about our finances. Secrecy is for the villains of the world, the 1%-ers, the cryptobro’s and the tax avoiding corporations.
For those of us who are open - we believe in paying our taxes to support a healthy and equitable society because money is not the end game. Our communities and each other are what needs preserving, not money.
Comparing my finances today compared to three years ago has been surprising to me, in a good way. I often feel like I am going backwards but I am plainly OK.
2020 > 2023
Net monthly earnings
- $1.9k > $2.5k
My Super balance:
- $111k > $238k
Cash in bank
- $8k > $15k
Joint mortgage debt
- $416k (2.84%) > $397k (6.49%)
Joint value of home
- $200k > $300k
Joint value of rental property
- $600k > $800k
Equities
- $58k > $100k*
*Simplified from 3 years ago to this > VGS/VAS/GOLD
Networth
- $248k > $708k
I cannot pretend otherwise, this looks good for me [gives self pat on back]. That is, if money was all there is to life. It’s not though.
My discomfort with money begins with comparing myself with others. Whether it is people who see all my years of savings as a piffling fraction of what they would expect for financial independence versus the people who have not been given the opportunity to save anything and rightfully distrust the system.
Confusingly (like pretty much everyone) I consider myself to be simultaneously wealthy and poor. After all, I only started saving in my mid 40’s and wish I had started earlier but I also see that I’ve saved plenty of money and could probably go live on my little dream sailing boat tomorrow. I suppose this puts me firmly in the middle-class… fuck, there go my working-class aspirations.
In addition to the unease of comparisons is the feeling that talking about money is impolite and unlucky. To do so is to be either showing off or just being boring. There is also the feeling of exposing yourself to scammers. I wouldn’t be surprised if my next #money post is about how I lost it all… again.
This I suppose is the root of our capitalist world’s misery. Fear, uncertainty and distrust - that is why I don’t like writing about money.
Fiscal Rules are always ‘self-imposed’
I’ve noticed a sudden outburst of new thinking on the R4 ‘Today’ progamme this morning… They are calling fiscal rules ‘self-imposed’. They always are, by definition, of course. And if Hunt or Rachel Reeves were asked why they needed them, I expect there would be some rubbish about markets. As we know the markets only... Read more
The UK leech in charge is the Bank of England Governor:
In the light of today’s really underwhelming and deluded budget I thought this American article made some good points. After observing that most Americans know an awful lot about George Washington’s life, the author remarks: But it’s very unlikely that you heard about how George Washington died. After eating dinner in cold, wet clothes, he... Read more
Stash April/June 2020
This will be my last stash report for a while.
I will be returning to Uni to studying postgraduate from mid July onwards so I expect to be busy.
This series of posts has been useful for me to focus on our finances whilst we both made the decision to buy a house; move to the outback of Australia and start new jobs, all during the unexpected Coronavirus pandemic. We had a lot going on with our parents visiting both back in Coffs and here in Broken Hill. It was always an imperfect snapshot anyway. I did not include my partners income or go into all our outgoings or incomings.
Life is too short for such shenanigans.
My Net Earnings
- $1,912 (May)
- $35,780 YTD
I could go into more detail here and show gross earnings with all the deductions but that is just kind of sad… on many levels
My Superannuation
- $110,797
This number just reflects the froth and bubble on the sharemarket at the moment.
Our Cash in the Bank
- $8,377
This has always excluded my partners balance, it’s not my business to share that shit.
Jointly Owed on Mortgage (Rate: 2.84%)
- $416,049
Estimated Home Value
- $200,000
Estimated Value of our old house in Coffs
- $600,000
My Equities
- $58,842
No changes, the market is silly at the moment. I’m not buying it.
VDHG(144);
GOLD(15);
IAF(36);
IEM(104);
VAS(215);
VGS(232)
Summary
Next month is tax time so it seems a good time to stop.
April/June Networth is $247,793
I’ll continue with stash reports but not monthly. I’ll need to work out a better format. Watch this space. Unless you have a life of course.
Stash May 2020
It all happened didn’t it? This could have been an absolute clusterfuck but luckily for us moving to a new home and job in the outback during a pandemic was okay. Thanks to the awesome team at LiteMoves the move was hassle free. Our house in Coffs is being looked after by the best tenants in the world.
Our NZ trip was obviously cancelled.
My Ma and JB moved to Broken Hill with us. They flew home last week, I was secretly hoping their flight would be cancelled and I’d get to keep my lovely Ma around for a bit longer.
Our new house here in Broken Hill needs a lot of TLC. I am learning how to maintain the freezing cold pool and exploring town to learn the lay of the land. We have both started our new jobs and so far so good.
Here is this months stash report in all it’s shonky glory:
My Net Earnings
- $1,946 (April)
- $33,868.28 YTD
My Superannuation
- $99,596
Switching to Equities would have been disasterous if I was planning on retiring soon. I’m not, so that’s good… I hope. Nonetheless it may be prudent to expand into governement bonds
Our Cash in the Bank
- $10,613
Jointly Owed on Mortgage (Rate: 2.88%)
- $421,106
Estimated Home Value
- $200,000
Estimated Value of our old house in Coffs
- $600,000
My Equities
- $53,178
Surprisingly stable considering the world at the moment, it won’t last.
VDHG(144);
GOLD(15);
IAF(36);
IEM(104);
VAS(215);
VGS(232)
Summary
May Networth is $242,685
Our current networth is based on a lot of ‘ifs’. If we sold a house, if we got the price and so on. The ‘ifs’ are null and void as we are not selling anything. The reality is that we owe the bank $421k and there is a huge recession on the cards. We’re both working so we’ll pay the piper.
Stash April 2020
The global COVID reset button has been activated to coincide with our move out west. My Mum and JB have not been able to fly back to the UK. So their holiday has turned into an extended stay with us. It has been great to have them both here. JB is a human dynamo of energy and has done an incredible amount of work around the yard. I love having my Mum safe with us during these awful times.
Currently Australia is fairly optimistic about ‘flattening the curve’. We have not had the numbers expected in our ICU departments, yet. We thought we might not be able to move house but everything is still going ahead. The police have told us it’s fine to drive outback and we both still have our contracts in Broken Hill. We have been packing up all our belongings into endless boxes. The house is chaos and I think we are all sick of it. The bank will advance and transfer the money for our new house tomorrow. Then the removal truck comes the next day and we will finally load up and go.
Here is my stash report in all it’s shonky glory:
My Net Earnings
- $1,451 (March)
- $31,921.40 YTD
My Superannuation
- $99,810
Recently changed to FSS 50/50 Australian/International Equities (single asset class equities)
Our Cash in the Bank
- $25,036
Paid the painter; the removal truck and the conveyancing fees
Jointly Owed on Mortgage (Rate: 2.88%)
- $241,566
Estimated Home Value
- $600,000
My Equities
- $55,015
These dipped to ~$40k briefly and I expect they’ll go back into that territory. I intend to keep on buying
VDHG(144);
GOLD(15);
IAF(35);
IEM(104);
VAS(211);
VGS(232)
Summary
April Networth is negative $161,515
Considering all the madness coming out of the news cycle we have been OK this month. Next month we’ll be in a lot more debt and own another liability. We’ll both be earning again. Without a doubt this is the beginning of some long-term pain for the world both financially and socially.
Stash, March 2020
My networth this month continues to be all over the shop. Money is flowing out as the house renovations are finalising and a trip to Darwin NT. Equities are of course crashing on the back of COVID-19. I’ll keep it short.
Net Earnings
- $3073 (February)
- $30,469.84 YTD
Superannuation
- $91,404
Cash in the bank
- $32,761
Owed on Mortgage (Rate: 3.38%)
- $242,997
Home
- $600,000
Equities
- $45,250
Summary
We are haemorrhaging cash as expected. We have paid the builders and scaffolders (~$9k), just waiting on the rain to ease up so the painter can finish, the renovations will then be complete (for now!). We have paid a $20k deposit on the house in Broken Hill and exchanged contracts. The bank has approved our finance. Our move date is set for the 21st of April.
My Mum; her husband, JB, and I had a trip up to the Northern Territory. We explored Kakadu and Litchfield National Parks before spending a few days in Darwin. COVID-19 erupted as we travelled home. My Mum and JB will be staying until it is safe to travel again. Who knows when that will be! Our trip in April to NZ has obviously been cancelled. I knew it was going to be a busy few weeks but COVID-19 has really upped the ante.
Like most people in the world the value of our assets have crashed so we used some of our cash to buy more ($12k VDHG). Prices are down :)
In short our current networth is down from last months -107.5k to -$165k
Last months pay was OK but next month is probably going to be a tough one. It is a fast changing situation so I’m trying to keep informed and make decisions with an open mind.
Stash, February 2020
Last year we booked tradies to begin the final stages of renovating our old wooden house. Nothing too major, a few repairs and a lick of paint. So, naïve…
The scaffolders arrived on Monday as planned and wrapped our little house in iron bars. Our builders found major repairs in addition to our minor ones. Then the six months of bone dry weather ended with some serious rain. Australians do not work when it rains.
In addition to these final (and possibly lengthy) abortive house renovations (scaffolders; builders; roofers; painters and tree loppers) plus our new jobs we have begun the process of buying a house in Broken Hill. Everything happens at once doesn’t it?
In my Stash! post last month I was inspired (amongst others) by Pat the Shuffler and Aussie Firebug to start posting my own financial situation. My financial plans up until recently have been vague at best. After all life is for living not for tabulating into spreadsheets. However, there comes a stage in everyones life when it pays to pay attention.
It is time for my monthly summary of my underwhelming finances. I am still working out my preferred way to present this information. The aim is to motivate myself to pay off my debts, save my wages and put something away for when I’m old and buggered. Pretty basic really.
Net Earnings
- $3,830 (January)
- $27,396 YTD
Superannuation
- $117,283
Cash in the bank
- $86,000
Owed on Mortgage (Rate: 3.38%)
- $246,768
Home
Last month I was being a negative nancy. Our little house would probably fetch more than the $500k I suggested.
- $600,000
Equities
I keep meaning to change my allocation but for now I have made no changes since last month. This is what they are currently worth.
- $53,263
Summary
We have not saved much this month. We had to buy expensive tickets to fly out to Broken Hill to find a house. I will also be going to Sydney with MJD. We have redrawn our mortgage in preparation for paying a house deposit and paying for our renovations.
Last months final snapshot was probably a bit wrong so here is my current interpretation of the situation. In Australia we are not allowed to touch our Superannuation until retirement so I am not including it. I am also not including the value of our home as I will always need a home therefore it is not an asset. I am including the debt though because that needs to go. I have also stopped dividing all the numbers by two, my partner and I are in this together.
February Networth is negative $107,505
Next month we will hopefully succeed in getting finance for a second mortgage for the Broken Hill house. My Mum and JB will be visiting from the UK and I will be taking time off work and have some fun planned with them. In terms of FI/RE I am definitely going backwards but this is LI/FE.
Edited for clarity 11/02/2019
Going for Broke
We have both secured jobs in Broken Hill and have made the decision to make the move. We are jumping in with both feet, albeit with a lifeline back here in Coffs. We are renting our house out and buying one in Broken Hill. I hope to keep our mortgage below $500k which we should be able to manage with the rental income and our two wages. Down the track I would prefer to only own one house. I don’t trust the Australian housing market. I am pretty sure the rest of the family would disagree.
Looking through the real estate websites for houses has been… interesting. Most search results seem to have about 5+ car parking spaces and a variety of powerful air conditioning systems. The yards’ around the properties are either dusty barren wastes or sealed with tile, concrete or astro-turf. This all says a lot about Broken Hill. No water, hot as Hades and a long drive to the next town. I am really going to miss the beach.
We have a short-list and are flying out there next week to harass the real-estate agents. This time next week, if we are lucky, we’ll have found a house and be desparately trying to hurry approval for finance through.