It’s been a long time between drinks (again)! Here’s the second Net Worth Report since we changed from a monthly to a quarterly format.
This quarter couldn’t have been more different than last. In fact, for the first time, my net worth actually reduced in one month!
Although this wasn’t entirely under my control, this quarter has been a big kick in the butt and a reminder to be more mindful with my spending.
Profile & Loss Statement
The table below outlines my profit and loss for the second quarter for 2019. Honestly, it was a terrible quarter and I really dropped the ball on the march the financial independence. Here’s why:
- Increase in discretionary spend: May was a bad month for discretionary spend! I had a number of social engagements (both compulsory and non-compulsory!) and was a little mindless with my spending. Sure was fun though 😛
- Increased mortgage expense: You may notice that a number of the expense items in the profit and loss statement vary wildly between months. The big one here is my mortgage. I actually paid almost double what I’d normally pay over a quarter. This is due to the fact that I refinanced my mortgage in March, went into arrears (which was apparently the normal process), and then had to catch up on missed repayments.
- Holiday spend: One of the things that I’m happy to spend money on is travel. In June a paid for flights and accommodation for an upcoming holiday.
This is a little embarrassing but I committed to being transparent! When all was said and done, my savings rate for the quarter was about 0.5%. I am very disappointed but I can take some solace in the fact that it was driven by a significant but temporary increase in my mortgage costs.
The table below outlines my balance sheet over the first quarter of 2019. For the first time since tracking my income and expenses, my net worth went down in a month. Those mortgage costs really bit hard!
Anyway, over the course of the the quarter I was able to increase my net worth by about 3.5%. Sure, it’s growth — but it’s very poor compared to last quarter’s 12% growth! This is a good kick in the butt and reminder to do better next time.
And In Other News…
I’ve decided that it’s time to live alone. I’ve been living with housemates for about 7 or 8 years now and, although I do enjoy the company, the lifestyle cost simply outweighs the financial benefit.
The timing isn’t great, as I’m coming off quite a bad quarter of saving. But we all need to think through what’s important to us and decide whether it’s worth the financial cost. There are some things that are simply more important than money.
So next quarter will be telling. No rental income and slightly higher expenses (e.g. utilities are no longer shared) will mean that I need to be more mindful with my money. Wish me luck!