We have 100,000 reasons to celebrate!
It’s time for a special update! It’s been a long and difficult journey but I’ve just crossed a huge milestone on the way to becoming a wealthy bogan. I’m now worth 6 figures, bitch! But how did I do it?
Here’s how it happened:
2013 / Age 22 / Net Worth: $1K
Bogan graduates uni! At this point, I had no savings and lived in what is now referred to as “the rat’s nest” – a needle-ridden block of apartments that accounts for over half of all police call-outs in the suburb. Here, my car was vandalised, tyres were slashed, and my neighbour got high and reversed his car into mine.
2014 / Age 23 / Net Worth: $9K
Bogan gets a part-time job! My first job was in a (meth) lab. Not really, I worked with liquid mercury – a meth lab would’ve been safer, but hey it paid the bills. Finally I could move into a nicer apartment; I snagged the cheapest one available with a garage. After 6 months in this job, I landed something full-time but still under a ‘casual’ arrangement. Once I finally had some savings, my car caught on fire, and I spent almost everything I had on a ‘new’ one – my current V8! I put the rest into shares.
2015 / Age 24 / Net Worth: $23K
Bogan saves! In 2015 I started socking away some serious money. I had the car, now I needed a house. I was planning to own a huge mansion. I went extreme frugal in order to squeeze every penny and it got me fairly depressed. I lost my job. Fuck!
I was unemployed for 3 months. I started to rethink my goals and decided to set aside my own wants and invest instead. I landed another job and continued to save.
In November a house popped up for sale – a 3 bedder in the bronx. It was the cheapest house in the metro area. I bought it for $150K ($15K deposit + $8K stamp duty, LMI & costs). At the end of the year I had $8K in my bank account. I used $4K of this to renovate the property with paint, carpet, a lot of sweat, and some tears.
I now had a cashflow positive property to supplement my income.
2016 / Age 25 / Net Worth: $85K
Bogan invests! My property was revalued $35K higher, just about doubling my net worth. I used the equity to buy a second property. In hindsight, I rushed this. I spent $10K of my own money to purchase this property, and another $7K renovating it.
By the end of 2016, I had two properties with $60K of equity and another $20K in shares. I was flying!
Now we’re in 2017. I am 26. My shares have had a great two months. My second property is still for sale / under contract. I got a tax refund!
Rental woes continue: our hot water has been leaking since we moved in. Boy did we get a shock when our electricity bill showed we spend $17 a day! I’ve since inserted my foot, and the landlord has agreed to sort this out.
Let’s move on. Check out my sexy assets:
2 houses on large blocks, still standing. Total value now at $440K with ~$380K debt. Interest only loans. Equity: $60K (No change)
$30,065 in six companies plus 4 LICs. I have received $0 in dividends this month. (Change: +$4,146)
$10,945 in an offset account, saving me 4.19% in interest. (Change: +$609)
Previous net worth: $96,379
Current net worth: $101,134 (+$4,755)
Boom! The six figures club!
Damn I’m proud. Time for some bourbon.
My new goal is $115K – by the end of the year!
COUNTDOWN: 46 Months Until I’m 30
It’s now been 39 months since I started investing & my net worth has grown at an average of $2,593 a month. Using Goalseek, this is a 9.9% annual rate of return. At this rate I should have $288K by age 30.
This doesn’t include my super, HECS debt, or my fully sick highly collectible V8.
Next up is September, when spring will have sprung!