|Australia Dollar - AUD|
|150,000 - 199,999|
|A 37 year old engineer. I've built my financial base, to be flexible for future lifestyle decisions. After a year trialling early retirement / stay at home dad overseas, I'm now consulting 3 days a week. |
|Why I Joined|
|So I could keep track of my progress. All values I track are in Australian dollars. Some frustration about the lack of maintenance on networthIQ|
|Best Financial Decision|
|Spending much less than I earn. Diligently, but quickly paying off consumer debt. Making a self commitment to building wealth. Tracking wealth, so I can understand and manage it. Taking a long term approach and not panicking if long term assets fluctuate in the short term! Not being shy about leverage for growth assets, and sticking with it in the hard times. Investing in stocks during global uncertainty. Automate and compound.
Investing in what you know (in my case, buying part of my employer). I've now sold that.
Maintaining a low cost, buy and hold investment portfolio, with a little bit of leverage. |
|Worst Financial Decision|
|Thinking that because I was likely to have a high future income that bringing forward future consumption by debt was justified. Getting too clever with credit card balance transfers, and using them for stock purchases and funding margin loans. My timing for this wasn't too good, given market conditions over 2008! Have had two margin calls, which I've learned from. |
|Current Investing Strategy|
|Let things glide for the next few years while playing stay at home dad.
My earned income is all marked as discretionary now, with the goal of not touching the portfolio / passive income for the next couple of years. |
|How do you manage your finances?|
|Automate where possible - I use a lot of DRPs, mostly because it makes the compounding automatic. I have found that getting the psychology right makes a bigger difference for me than a couple of basis points from optimisation. |
|I need financial help with...|
|Doing nothing 90% of the time - most of the time just sticking to the plan is the best course of action. |
|Goals instead: Short term: Finish FY2013/4 with net worth of $1.5M. Achieved Jan 2015, seven months late. Current goal, pay off home mortgage by 2017, and have $100k net passive income at that point. Achieved November 2016. Next goal - get comfortable with drawing an income from the portfolio - failed. I ended up working part time for something interesting to do. FIRE with a working spouse if hard. |
|5 year goal (2020). Have a paid off house and live off 2% portfolio withdrawal rate. Been trialing this since late 2017. |
|Long term - enjoy life, shift focus to health and strong relationships. |