It seems like time is flying between net worth posts and it may yet prove to be the case that monthly is too incremental to be newsworthy. I may need to change the frequency with which I post on this topic in future. But for the time being, here’s where we’re at for March.

Remember: We include the house we live in as part of our net worth calculation because selling it is part of our retirement plan. It’s not something I’d recommend for the average person wanting to know their net worth.

KiwiSaver – Mr R2A$16,292.27
KiwiSaver – Mrs R2A$9474.06
Our House (equity post-mortgage)$70,741.51
Index Funds$1751.98
P2P Lending$69.72
Bonus Bonds$20

All up this is an increase of $1046.08 or 1.08% from last month, mostly due to mortgage repayments.

A few explanatory notes to add context to the calculation:

  • I haven’t included cash in the bank as part of our net worth. We’re currently actually going through a “decumulation” phase in that regard due to Mrs. R2A’s maternity leave so there’s not a heck of a lot to speak of there. Once she’s back at work and we’re putting cash into an emergency fund that we know isn’t likely to be leaving our bank account any time soon, I should probably start including that in our net worth figure.
  • It will be interesting to see how the % change from month to month shifts as time goes on. I would expect, given that most of our net worth boosters are fixed in dollar terms (mortgage payments being by far and away the main factor here), that the % change will go down each month. Increases in net worth of over 1% a month indefinitely would be great, but not realistic!

In general, we expect our net worth to continue to grow at this steady rate. Over the medium term, factors such as market returns will start to play a bigger role in how our net worth fluctuates, but for now they’re negligible really. More likely sources of significant boosts to our net worth will be things such as our mortgage fixed rate ending (an opportunity to again boost repayments and shorten the term), being able to start an emergency fund, and potential windfalls such as subdividing and selling part of our property, if we decide to go down that route (another topic that needs its own post).

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