Hello and welcome to another monthly net worth update!
October was pretty nasty, wasn’t it? Markets had one of their worst months for some time and we seemed to have skipped autumn and gone straight to winter in the UK. Despite the storm clouds gathering from an investment perspective, I hope you all managed to have a productive month.
What Happened In October?
I had one main goal for October:
- Create more content – I needed to get all the posts sitting in ‘draft’ mode out the door!
October felt like a minor breakthrough with regards to producing more content and generally making some strides with the blog overall. Over the month, I managed to produce the following posts
- Each Way Betting Report #3 – September: – My usual monthly summary of how each way betting fared over the month – September was a +48% growth in my betting bank
- The Full Guide to Each Way Betting: – my written guide for everything I am doing on each way betting should any folk want to get started
- Monthly Net Worth Update #4: My usual monthly snapshot of Net Worth and the key changes/drivers over the month
- Why Paying Off Debt Might Be The Best Investment Decision You Ever Make: An interesting perspective to consider the rate of return you may achieve clearing unsecured debt vs investment returns
- The Opportunity Cost of Home Ownership: A look at how to evaluate the opportunity cost of mortgages vs renting and how to evaluate your freedom
- Know Your Returns: Making the distinction between time-weighted and money-weighted rates of return when evaluating your personal rate of return
Looking back over this list, I am pleasantly surprised I managed to get so much done this month. I’m still highly inefficient at the process, but certainly making some gains month-to-month.
I still have a few more posts near completion which will no doubt make it out the door during November. Outside of the standard monthly updates, these will include posts on how to calculate your money-weighted rates of return in a spreadsheet; examing mortgage overpayment options and creating a recommended resources section on the site to list all the great things I love, use, read or consume and would personally recommend.
Looks like another busy month ahead 😉
Net Worth Snapshot
Right, let’s take a look at some numbers for October. Below I break down my current financial assets as at the end of the month and compare these to last month totals:
As you can see, for the second month running total net worth took a hit to the tune of -2.2% and dropped to £529,690 (a decrease of £12,025). Excluding property, this translates into a -4.3% drop to £291,469 (a decrease of £13,098). This was driven by the sharp reversal on the stock market, which impacted the value of my pension and investment accounts.
Nearly every penny I have exposed to the markets, by way of pension and ISAs, is invested in Vanguard LifeStrategy Funds. The two I most heavily invested in are the LifeStrategy 80% Equity Fund Accumulation and the LifeStrategy 100% Equity Fund. Both funds had one of their worst monthly returns since launching back in 2011. Not that this really matters in the long-run and it means my monthly subscriptions will be picking up a few additional units this month 🙂
Elsewhere, cash and equivalents was a slight positive, boosted by the decent continued good run in profits from Each Way Betting; unsecured debt edged a little lower as another payment is ticked off, and property prices have certainly flatlined so nothing significant to report there.
So how does this impact the year-to-date picture? Well, my total net worth remains 11.1% higher than at the start of the year (+£53,082) and, excluding property, that’s an overall increase of 13.4% (+£35,515).
Focus Areas For The Coming Month
In the coming month, I have a few focus things going on:
- Now that I have a good initial amount of content on the site, I can see how the whole thing is starting to hang together and where it needs to be much better. I see many little fixes needed (sorry!), from rescaling my images properly to tweaking layout and design. So a bit of Pursue FIRE housekeeping will be in order
- With Christmas fast approaching, and a few irregular payments due (including house insurance and annual train season ticket) money management will be key this month
- You’d think with three children, a full-time job, long commutes and building Pursue FIRE that I’d have enough to keep me busy, but I have also been accepted onto a year-long distance learning Executive MBA programme! I’ll weigh up whether this is something I really need to do or not. I have received a significant financial reward towards it so its less a cost issue more a time management issue!
- Possible Podcast – I’ve dabbled with a great podcast creation in the past, and I think its something I may introduce to compliment the site at some point.
As always, thanks for taking the time to read 😉
Until next time!
Do you have any comments, questions or tips for me? Please let me know by leaving a comment below