May 2021 Update
I hope you enjoy reading our 2nd monthly update, May 2021!🙂
Total Net Wealth = $905k
I feel it was only a few weeks ago when we hit the big $800k, so it’s a bit crazy to be writing an update so soon.
May was a month of craziness. WE BROUGHT A HOUSE!
Well, technically we won an auction, it’s not 100% ours until settlement date, so fingers crossed everything goes smoothly. I’ll write up a blog post about the entire process of buying a house at auction (first home buyers). It’s been really easy and relatively stress free so far, so keep an eye out and read all about it later 🙂
Back to May… We didn’t have too much side income during May as we were really concentrating on house stuff, but we did manage to make $120 of pocket money. Our 9-5 day jobs are BY FAR the main source of our income, I guess that goes to show that you can have amazing spending habits, but also being on a stable wage helps alot. Fortunately, we were quite lucky during COVID to remain fully employed. I say fortunately, but I read so many mixed accounts… So people we know received the full job keeper payment and only worked a few hours a fortnight, and others worked full 80 hour weeks and received about the same, not sure who the lucky ones were 😉 Apparently this is a personal fiance blog and not political so let’s skip past that!
For the data nerds… PowerBI continues to give me valuable insights into our financial position and spending habits. The May 2021 dashboard is below:
Clicking on the file should open in full screen for a better look
If you compare to last month, you’ll notice that we reduced our share portfolio (by about $55k) and added it to our cash., which you may think is insane, however most (Pretty much all of it) is going straight towards the purchase of our first home.
I’ll go into more detail about the setup of our mortgage in another post, but we really wanted the smallest loan we could get instead of parking large amounts of cash into an offset.
The fees and taxes associated with our house purchase is $25,000, so our net wealth next month might take a hit and slip below the $900,000 mark, but we’ll see 🙁
Also… $25,000 is a crazy amount in fees and taxes. I knew stamp duty and everything would be expensive but woah, property is so much more expensive to get into than shares!
To put it into perspective…Our $781,000 property will cost $25,000 in fees. If you purchased $781,000 worth of shares you’re looking at around $900… That’s huge (Shares also cost $0 per year to hold and maintain, and nothing ever needs replacing. $25,000 is abit of a hard pill to swallow, I really don’t know why the government needs to take such a huge amount whenever a house changes hands… (If you know where it goes, please let me know!)
Our income was pretty standard this month, no extra cash from side gigs and no dividends.
Expenses remain crazy low due to us living with the in-laws. Our biggest expense are taxes, and we transferred some funds to our friend to cover the holiday we took a while ago. We also enjoyed a wonderful 4 day holiday to the Gold Coast where we celebrated our 3 year wedding anniversary 🙂 We got a pretty awesome package deal, so that stretched our dollar even further 🙂
I also setup a fun little metric for the line chart, which is our net wealth since we started. I’ve added in a 2 year forecast, which is guessing where we next wealth could be in two years. It’s saying we could have 1.3 to 1.7 million haha I think it’s wrong.. but you never know? haha
The last 12 months has been pretty strong for us, with a 36% increase in net wealth, mainly from the share market streaming ahead 🙂
Thanks all, looking forward to writing up about buying a house when that’s all done and dusted. Bye!