For new and existing readers, this is my journey as an anonymous millennial from -$20,000 net worth in November 2016 to financial independence and early retirement. Subscribe to my blog to stay posted!
We’ve now reached three months since the beginning of the heavy COVID restrictions and life in self-isolation has become normal. Things are starting to ease up, restrictions are starting to be lifted and spirits are higher, however the economic impact will continue for years to come. The market is starting to recover since the market crash at the start of March, and I’ve noticed my index-fund investments breaking even and retirement fund increasing in value. Blue skies are back again.
This past month has been the first month since the lockdowns to relax, enjoy a slower work pace, enjoy my personal time more and reflect. The economy is starting to recover, businesses are opening up again and it feels like the worst is over.
So… How much did I spend in May?
It’s amazing how a feeling of abundance can change people’s perception and kick start spending and consumerism again. I’ve purchased a lot of ‘things’ this month, however, almost all were free because I used points, vouchers or insurance claim money so I wasn’t out of pocket for almost all of it. Just looking at the ‘free’ things I bought (not counting the ones on sale), it added up to more than $1000. Most of my spending was on education, which I’m always happy to invest in as it boosts my career and feeds my curiosity.
I’m conscious to not resume the same spending habits which I was doing pre-COVID as it’s easy to slip into old habits. Despite higher grocery costs as I’m experimenting with different recipes and stocked up on wine (see this post), spending on lifestyle has reduced and because of this, I’m saving more though my overhead has remained the same.
What is my net worth?
My net worth jumped by $8,000 compared to April, due to an increase in superannuation (retirement fund) contributions, the share market recovering slightly and spending less/saving more to put towards my emergency fund. I’m one month away from reaching my goal of having $20,000 in my emergency fund, and I’m very excited to finally reach this goal.
I learned a lot about my own risk tolerance by dipping into my emergency fund in March to buy Vanguard index funds. It has paid off in droves as I’m already making a profit, however, going forward, I know that I’m not a big risk taker as I stressed about not having enough cash in the kitty in the event where I would lose my job. Emergency fund first, investment second.
How was your month of May? Did you have any revelations, learned any lessons or had any frugal wins? Comment below!
xx Miss Piggy