Sunday, 31 May 2015

May 2015 in review

Millionaire by 2020 2019 Plan – May 2015 Update
Millionaire by 2020 2019 Plan – May 2015 Update

May was not a good month for the MoH in terms of overall expenditure, with council rates and home and contents insurance both due.  I suspect I will see the impact of this next month when my credit card payment comes out of my bank account.  The one good piece of news is that my food expenditure finally decreased by $100 – yay!

Shares were down for the third month in a row.  In retrospect, I’m glad I didn’t buy more like I was considering last month.  However, I’m starting to wonder if I missed the top of the market and should have sold off a few in February.

My super balance continued to rise in spite of the share market decline.  However, I do suspect it went down earlier in the month, but was later rescued by my super guarantee contribution later in the month.  Now that I have my own company, I only have to make super guarantee contributions quarterly.  In theory, this should give me an opportunity to time the market a bit better and tip in more when unit prices drop.

My cash balance went up by a lot again … although this should reverse next month with the credit card statement arrives.  I have to admit my cash balance has become an estimate since transitioning to a company structure.  With the company, I knew that I’d have to factor in keeping aside money for quarterly GST payments.  I didn’t consider PAYG tax withholding and super.  Taking all of these into account, by the end of a quarter, there’s an awful lot of money in my bank account that isn’t mine!  So I’ve been deducting an estimate from my cash total to reflect what is truly mine.  Hopefully, this will become easier as my income stabilises.  Otherwise, I’ll need to set up a separate bank account just to pay taxes from.

All in all, the Millionaire by 2020 2019 plan tracker maintained its upward progress to 42.9% compared to the target of 25.3%.  This was a 1.2% increase from April, a bit higher than my budgeted growth rate.

In June, I will need to learn a bit more about financial year end accounting for companies to make sure everything is in the right place as tax time approaches.

Stayed for more news in June.

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