Net Worth – August 2020

The past month has been good to us in terms of our net worth. It’s all about to change because we just had ventilation installed which means we’ll eat likely eat into our revolving credit facility for the first time since we took it out a couple of months ago. So next month’s net worth update might see a negative shift in home equity for the first time ever (or even just standing still).

Here’s where our numbers stand at the moment. For the first time I’ve added in a percentage column to show what each item is as a percentage of our net worth. I think it will be interesting to see whether the house equity proportion decreases over time (I think and hope it will) as this will be important for diversification.

KiwiSaver – Mr R2A$24,516.2211.8%
KiwiSaver – Mrs R2A$13,901.056.7%
House Equity$163.703.5278.7%
Eat My Lunch$5000.2%
Bonus Bonds$20.000.0%

That’s an increase of $3,880.51 or 1.9% over last month. Only just over $800 of that is house equity increases, so what that tells me is that our non-property investments should increase at four times the rate of our house, which is ideal in order to even out their proportion of our portfolio. Of course that’s notwithstanding the potential decrease in equity as we dip into the revolving credit to do renovations, which will accelerate that differentiation.

Comment Policy: For this blog, I’ve implemented a Comment with Kindness policy. You can read more about it here, but the gist of it is: Follow what I call the “Grandma Rule”. If you wouldn’t take that tone with your grandma, your comment probably won’t make it through moderation.

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