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Friday, 6 July 2018

The Year of Investing: June 2018 - It's over!

The Year of Investing is over! I kicked all the goals, and I'm stoked to see how much impact this year has had.

To reach Financial Independence, Retire Early, and not have to go to work on a Monday ever again I need lots of money. More importantly I need money that produces more money. Right now I spend between $25,000 and $30,000 a year. This doesn't include the maintenance costs on my investment property, because that
is covered by the rent. So if I wanted to walk out of work and never come back again, I need to find a way to make $25,000 a year, without a regular paycheck.

I'd rather go for the higher end of the scale though, so to fund my $30,000 lifestyle in retirement, I'm going to need to find $750,000 in the next eight and a half years, in accordance with the four percent rule.

The investment plan

For the next twelve months (July 2017 - June 2018) I am going to focus on supercharging my investments. The earlier in my retirement journey I start investing the more heavy lifting will be done by compound interest. By spending my money on buying more money in the early years, I hope to see my investments growing on their own through the next few years.

In the Year of Investing I plan on building up my existing accounts until I have just over 10% of my retirement fund. Starting from $52,000 I'm aiming for $80,000 by July 1 2018, an increase of $28,000 - just shy of $2,400 a month.

Except, not really, because I have a stretch goal, and now a double stretch! Overall I plan to have $90k invested, for an increase of $38,000, or just over $3,150 a month.

Acorns Raiz

Want to try out Acorns Raiz? Check out my review first.


Opening Balance: $4,760.44
Deposited: $211.21
Dividends: $0.24
Market Gains: $30.63
Current Balance: $5,002.52

Since starting The Year of Investing

Opening Balance: $813.53
Deposited: $3,891.01
Dividends: $73.27
Market Gains: $224.71
Final Balance: $5,002.52

Done, and ahead of target! Woo

Goal: $5,000 Done!

Future investment plan: At this point it's not really 'micro-investing' as the sales pitch goes. I'll keep adding a little money in each week, and letting it grow but I'll also be considering whether I should close the account and move somewhere with lower fees.


Want to try out Vanguard? Check out my review first.


Opening Balance: $66,720.37
Deposited: $2,850
Dividends: $2,336.95
Market Gains: -$635.33
Current Balance: $71,271.99

Since starting The Year of Investing

Opening Balance: $39,566.66
Deposited: $27,225
Dividends: $3,584.56
Market Gains: $845.77
Final Balance: $71,271.99

Umm, wow. The markets played along wonderfully!! Until dividends were paid, because that's a weird thing that happens. Leading up to dividends the prices spike, and after divs are paid they immediately plummet. I had $71,500 on the 28th of June, and a couple of days later dividends were paid and despite getting paid over $2,000 in dividends, the overall value actually dropped almost $300.

It's weird, but normal. Still kicked the goal, so still pretty chuffed.

Goal: $60,000 Done!
Stretch Goal: $65,000 Done!
Double Stretch Goal: $70,000 Done!

Future investment plan: $1,900 per month. This is split between 4 deposits into Australian Shares, Australian High Yield, International Shares, and a small amount of Australian Bonds. I'll be sticking to this moving forward, while I work on other goals.


Want to try out RateSetter? Check out my review first.


Opening Balance: $14,855.60
Deposited: $200
Loan Returns: $104.57
Current Balance: $15,160.17

Since starting The Year of Investing

Opening Balance: $11,416.13
Deposited: $2,550
Loan Returns$1,194.04
Final Balance: $15,160.17

As I've been banging on about for the last year, RateSetter is wonderful. Nothing more to say, it's unexciting, reliable and a huge favourite of mine.

Goal: $15,000  Done!

Futue investment plan: $200 per month. In my retirement plans, RateSetter will form a stable backbone of my investments that I can draw on in the event of a share market crash. I don't want to put all my eggs in this basket, and I know that it will be affected by economic swings, but it should move to a different beat than the markets.

The big picture - my savings rate
In total I'm hoping to invest $23,000 during the Year of Investing (now $33,000 with my double stretch goal!). On top of that I plan to keep up with my mortgage repayments, which should see my debts drop by approximately $12,500. This means saving $35,500, (45,500) just shy of 50% of my income (just over 57%). 

So on top of paying down my mortgage and investing, I plan to squirrel away a little bit more so I can declare that I saved 50% of my income. In the previous 12 months I saved 41% of my income, so this year I though 'What the heck, let's push for 50%'.

According to the networthify early retirement calculator, if I pull this off I'll be able to retire in 9 years - just a few short months after my goal. A lot can happen in nine years, and I intend to prove that calculator wrong ;)

According to the Mad Fientist Lab, after June I'm eight years and three months away. In one month, I'm one month closer - tracking along. However to retire by 35 I need to bring that number down to six years and eight months, an ambitious goal.

Here's how my savings look for June:

I spent very little, but I paid the credit card bills from last months big spends.

I think my favourite part of this chart is that it shows the importance of front loading, and doing better than necessary when you can. At the start of the year I had three amazing months (August, October and November) and then a bad month, and two more good ones. This set me up nicely so that even though I was well below target for March, April and June, I still got over the line.


For the sake of curiosity, here's what I spent in June.

CategorySpentBudgeted12 Month Average
Home$1256.84$1,312.50$1,375.91 (down $1.16)
I threw a little more money at the power bill to cover my credit card minimum spend, and I started putting money aside for some desperately needed home improvements. 
Investment Property$773.55$1,166.67$1,293.86 (down $70.11)
Just the mortgage, my favourite kind of month.
Personal Bills$151.60$151.60$148.08 (up $0.39)
New year, new health insurance premiums. Blergh.
Groceries$215.22$200.00$199.60 (up $1.11)
I ate everything in the freezer and now it's empty again. I'm a little baffled as to why this month was so expensive, because we ate a lot of leftovers.
Pets$103.10$29.00$39.97 (up $7.27)
BUY ALL THE THINGS AGAIN!! The miniature homesteads' two new chickens, and four quail are settling in nicely, except that three of the four quail are boys - so much for my egg-mpire. I've started putting aside money to build a pen that will hold 20 quail so I can get the boys a harem. In for a penny in for a pound! 
I hope to bring in $50+ a month in egg and bird sales once everything is set up, which is good because I spent nearly $100 on feed this month! More information to come about that...
Roller Derby$300.92$150.00$217.33 (up $5.62)
GUESS WHO WENT TO DARWIN? THIS GUY!  And bought new wheels and bearings for my skates. Ouch. I also need to start thinking about new skate boots since I ripped one of the eyelets out and have a hole in one toe.
Travelling$0$100.00$0.00 (no change)
As usual, nothing, because I keep travelling for derby.
Other$163.80$157.25$232.82 (up $3.57)
After last months big spend I wanted to keep this down. I bought a shirt, some booze and a couple of meals while I was away from home.
Total$2965.03$3,267.02$3,507.56 (down $53.33)
Cheap Cheap, Cheap Cheap. Given that I need to bring my FIRE date 2 years closer than current projections, this is the sort of expense report I want to see.

It's over, we did it!

The Year of Investing is officially over and I almost kicked all my goals. I smashed the investing goals, including my double stretch goal, and I saved 53% of my income. Keep your eyes peeled for my next round of goals - Adult Habits and Hoarding! It'll be thrilling stuff, I promise.

Blast from the Past!

The Year of Investing started July 2017. You can see past reports here:

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