Chapter 12 - “Portfolio Update - Family is in Darwin” April 2019 Update Net Worth $64,000 (-$-12118) - The Incompetent Investor

Thursday, April 4, 2019

Chapter 12 - “Portfolio Update - Family is in Darwin” April 2019 Update Net Worth $64,000 (-$-12118)


G’day all,




I will be covering the following topics in this update. If you want to skip the life story, head down to the Family Networth Update. I've also thrown in some photos of the animals at various points of the journey. 
-          Intro
-          New Car  
-          Life Update
-          New Debts
-          Goals
-          Networth Update
Intro
It has been a number of weeks since I have last posted.

Straight up I will admit that there was a reluctance to post given our recent hit to the family’s net worth.

I feel like the purpose of a FIRE blog is to progressively move forwards. And yet, we have been progressively moving backwards ha ha.

One day though, I will reflect back on this blog, and direct my son to some of my early lessons and mistakes I made. At the end of the day, we are all dealt different hands (jobs, health, career opportunities, life events & more), and thus we should make the best out of the situation in which we live.

I want to share the hard times, the mistakes, and hopefully, EVENTUALLY, the good times when we are in a much better place financially.

I completely appreciate that there are plenty of bloggers who are well on their way to FIRE. I’ve learnt so much from SMA, Firebug, FI Explorer, Flamingo FI to name a few. I take comfort knowing that my strategy aligns with some of other bloggers.  

Where this blog stands out perhaps is that I am not that far along in our journey. For that reason, this blog may resonate with those who are just getting started.

It may also resonate with those well on their way as well as it serves as a reminder that they too had to face challenges during their journey to FI.

2008 Honda Accord Euro Medically Discharged

My beloved hail damaged, dinted machine, sunscreen stained metal finally had its day.

The vehicle that served me so well for so many years decided to throw in the towel as I flew back from Darwin to Melbourne. Just a few days earlier, my wife had the vehicle serviced, had the battery changed, and had new tyres fitted.

Unfortunately, a couple days before departure, the vehicle was regularly overheating.
This was happening very occasionally prior to the recent major service.

We figured after a major service, it would be resolved. Driving through central Australia was probably not a good idea. This region frequently reaches up to 40 degrees.  

All the recent repairs cost the family $1000 (battery, tyres & major service).

I arrived in Melbourne on a Thursday night, and we had to leave on the Monday morning to reach Alice Springs for some meetings I had set up for work.

In other words, we had to keep moving and I was not comfortable driving up to Darwin in the Honda.

People legitimately perish in the outback for various reasons, and the car was adding to my already well-established anxiety. Heck, I cannot even change a tyre. I am useless in that respect. Thank the lord for YouTube tutorials. I did a couple tutorials before we left.

To cut a long story short, I had 2 days (Friday & Saturday) to get a vehicle organised from a dealership. Private sale would take too long, and we did not have sufficient savings to cover the cost of moving and a second hand reliable vehicle.

We head out to our local Nissan dealership up in Ferntree Gully and found a Nissan X-Trail 2009 Ti 4WD for $12,000 with 95,000 KMs. 


We ended up taking it without much deliberation. I was in a tough spot and made an executive decision. I was the perfect target for my fellow Indian salesman.

We also ended up painfully trading the Honda in for $2000, so we effectively made $1000 on the vehicle after the recent repairs and maintenance costs. 

It was an absolute disaster. The dealership got the better end of the stick here. I have no doubt the vehicle will be repaired and sold for $4000-$5000.

We did have a healthy savings balance. Our savings went from a healthy amount, down to almost $0. Last time I checked, I had $120 in our saving account.
Much of the cash was directed towards a bond rental payment (which was quite substantial as I moved into a affluent suburb to ensure my son qualified for the catchment schooling zone), one month rent in advance, removalist costs, and some flights, new passports & visas organised for India (wife’s mum is unwell).
In the end, I had to take out a $10,000 loan on an interest rate of 12% pa through Nissan Finance. I was hoping to get a 4WD for about $8000. Unfortunately, I did not have time to travel dealership to dealership with our departure day nearing.

It was definitely an impulsive buy, and it is what it is now. Thankfully, the car drove to Darwin beautifully. It did not miss a beat.

In case you are wondering, we explored rentals but it was not worth it. We also had two dogs, a cat, and a child to transport to Darwin. They all did awesome by the way.

Summary
-          $10,000 loan
-          Savings wiped out
-          Royal Comission has an impact on my ability to borrow. Lending almost fell through
-          Nissan X Trail 2009; 95,000kms



Life Update
I have started my Masters in Social Work at Monash University in an attempt to one-day move into some roles that suit my personality and skillset.  

My wife has also resumed her study. She is studying nursing part time through Charles Darwin University.

Work is going good; I have a great boss who is flexible around medical and personal appointments. There are definitely some challenges like any job. My role depends a lot on collaboration, without it, some parts of my work fall apart. 

My work is also dependent on funding which means I may be unemployed later in the year.
Wife is currently unemployed and struggling to find work as quick as she would hope. The terrain in Darwin is new to my wife who is usually snapped up in entry-level type roles relatively fast back in Melbourne.

The economy has definitely slowed down in Darwin, which may prove disastrous in terms of timing the reuniting of our family. 

I have spoken to quite a number of locals, and many have stated their mortgage is worth more than their house. I wonder at what point is it worth buying in Darwin?

Once again, it puts my situation into perspective. Here I am worrying about a few consecutive months of progress towards FI.


New Debts
Father Phil aka my dad - $1000
Nissan X-Trail 2009 - $10,000
Total: $11,000

Goals 2019
  • Prioritise the vehicle loan and get it paid down by Dec 2019.  
  • Secure work should current role end in September
  • Revamp Blog site
  • Gaming Computer (I do not NEED it, but I would LIKE it as I spend a lot of time on the computer for pass time).
  • Kick-Start Dog Training Business (Wife had a well-established business in Melbourne with well over 30 5-Star Positive reviews on Facebook). If you are unaware, I had to move to Darwin (a warmer climate) for health reasons.



Net worth Update April 2019  -  $64,000

Unsurprisingly, the net worth took a massive hit this month with our savings going into the relocation costs. 

In addition, the new debts have set us back a bit. I was fixating quite a bit on the decline in progress, but it is done now and we need to keep moving forward.



Disclaimer: I have an extremely poor track record with picking individual shares. I also do not have the ability to digest complex financial reports to make informed decisions around buying into individual shares. Also, the information on this website is general information and should not be taken as financial advise. I am simply documenting my journey and experience. I am also not a licensed Financial Adviser. You should also seek independent legal, financial, taxation and other advise that relates to your unique circumstances. The Incompetent Investor is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this website. 



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