Bogan Wealth – January 2017

New Year, same bogan. Here’s a brief summary of my progress so far.

With $500 to my name and a giant debt from Uni, I started saving in May 2014. By putting away about 60% of my income when I’ve actually had work, I’ve been able to invest quite a bit. Thanks to me, shares in Fantastic noodles have gone through the bloody roof. Chicken flavour of course.

How I do it is pretty simple: me pay goes into one account, and then I set it up with this you beaut feature that sends 60% to savings, 25% to rent, and 15% to a spending account. This way I know what goes where and I can keep on top of it all! Every now and then I’ll invest some of the savings and bob’s your uncle. I started this a couple of years ago when I had finally started working full-time hours.

Before I knew it, it was the end of 2014 and I found myself losing my job – “Merry Christmas ya bogan” they said. I was unemployed for a few months and that set me right back.

So long and thanks for all the fish

By the end of 2015 I had found another job that paid less per hour but after 3 months there I bought my first house nonetheless. It was a you beaut ripper – the cheapest one in the metro area. Four walls, a door, what more could ya want. By the end of 2016 I had two houses (doubling my total number of walls), got my first pay rise, and began a share portfolio to kick on with. This is how it’s tracking.

Property

2 freestanding houses on large >600 sqm blocks, worth $455K with $385K debt. Interest only loans. Equity: $70K

Shares

$20,202 in just five individual companies. Average dividend is 4.9%.

Cash

$5,142 in an offset account, saving me 4.2% in interest.

nwjan17

Ticking along nicely

Total net worth: $95,344

100K is just around the corner and I hope to reach it by the end of Feb. Job security is looking a little shaky so we’ll play it by ear. Unemployment sounds so beautiful when I think of all the free time I’d have. I also spent too much money on Xmas but still.. I might buy a motorbike for the hell of it.

COUNTDOWN: 53 Months Until I’m 30

It’s now been 32 months since I started investing & my net worth has grown at an average of $2,963 a month. At this rate, I have a projected net worth of $252,429 by the time I turn 30. Which is good, but not great.

Assuming ~$180K of that will be in stocks, I’d need to withdraw 5.6% p.a to cover the necessities.

This doesn’t factor in any potential pay rises, increases in rental income or equity, nor does it include my super, HECS debt, or my fully sick V8.

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5 thoughts on “Bogan Wealth – January 2017

  1. Looks like you’re making decent progress! I’d definitely skip the motorbike and sell the V8…. 😉

    Sounds like your investing has happened pretty rapidly which is impressive to see. I am not familiar with the Adelaide market, but two properties there sounds pretty good to me. Have you looked into index funds? Or happy with individual shares? I have both and certainly prefer the index funds, but once upon a time I was picking individual shares like I knew something, and it turns out I knew nothing. I only still have them because I’d lose so much by selling!

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    • V8 guzzles fuel but I love her!

      I certainly have considered them, I seem to get criticised a bit for avoiding them. I really don’t see the Aus economy doing too well going forward, and is the global economy much better?

      When I first started buying shares I went for more speculative companies. I made money on all but the miners. I’ve since refined my strategy to target value small caps and no god damn mining companies. So far it’s working – but eventually I’ll probs put a large chunk into something like VGS in somewhat of a core-satellite method. Considering the current exchange rate, that may happen sooner than later..

      What kind of companies did you aim for, and which funds did you settle on? And why?

      Like

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