December 2024 | Our Journey to Semi-Financial Independence: Income, Expenses, Net Worth, and Investments
December often has the potential to derail even the best-laid financial plans with school holidays and the festive season. However, by adhering to our minimalistic Christmas values, we managed to stay on track. In this update, I’ll share how we navigated the festive period and an unexpected factor that significantly boosted our net worth!
While I won’t be doing a full end-of-year review since I only began these updates in August, I’ll reflect on key movements since starting this blog.
Income and Expenses
Groceries: Managing our grocery budget has been one of the biggest challenges of 2024. At the start of the year, we allocated $1,450 per month, but this ballooned to an average of $1,610 monthly. During the year, we transitioned from shopping at Aldi to a more organic-focused approach. Inspired by reading Ultra-Processed People by Chris van Tulleken, I’m confident this was the right choice.
After trying various providers, we settled on Harris Farm for their range of organic vegetables, fruits, meat, and milk, plus their convenient pick-up service. For 2025, we’ve budgeted $1,633 monthly, and a family focus will be maintaining this budget without compromising food quality.
Other Notable Expenses:
Gifts: Came in under budget at $474.26.
After-School Care: Cost $270 to ease the pressure on my wife to pick up our daughters.
Car Expenses: A repair issue led to $100 in costs—more on this shortly.
A summary of our total expenses in December 2024
Net Worth
December saw an incredible $70,000 increase in our net worth. Initially, I couldn’t pinpoint the reason, as our share portfolio, superannuation, and crypto holdings had only marginal growth. The game-changer? Realising that our land’s value was not listed on the image, as shown below, however accounted for in the overall figure.
Our current net worth position as of the end of December 2024, however the bars does not include our land. The ‘total net worth is correct.
After reading an investment update from Dave Gow (Strong Money Australia), I checked our land’s valuation on realestate.com.au’s realEstimate tool. To my surprise, the low-range estimate valued it at $600,000. While property is only worth what someone is willing to pay, this is a reliable benchmark I’ll use for future updates.
A screenshot taken from realestate.com.au of our land’s current value.
Cash Position: Our cash decreased by $21,000, largely due to replacing our car. Our old vehicle became undriveable due to engine issues, so we sold it for $1,000 and purchased a second-hand 2022 MG Core HS for $14,500. Including transfer and stamp duty, the total cost was $15,000.
Stay tuned for an upcoming post detailing how we’ll restructure our accounts for 2025.
Investments: The Road to Semi-FI
Share Portfolio: December was relatively flat, with a $600 decline in our share portfolio. Gains in US-focused ETFs like VESG (ethical top 1,500 index) and NDQ (NASDAQ’s top 100) were offset by a dip in VAS (Australia’s top 300 companies index).
2024 Performance Highlights: It’s been a gangbuster year in global markets and our portfolio achieved remarkable growth:
Capital Gains: Increased by nearly $22,000.
Dividends: Paid just over $4,000, which we reinvested.
This represents a 20% overall increase, highlighting the long-term benefits of investing in diversified ETFs. While 2025’s outlook predicts minimal growth, I’m confident in the strategy’s resilience.
A graph from Sharesight showing the growth of our portfolio over the past 12 months, including a breakdown of capital gains and dividends.
A summary table from Sharesight showing a breakdown of capital gains and dividends per ETF/ share that we hold.
Summary
December capped off a transformative year in our Semi-FI journey. We balanced holiday spending with our minimalistic values, embraced organic living despite rising grocery costs, and navigated unexpected car expenses. A reevaluation of our land’s value added $70,000 to our net worth, contributing to an impressive year-end figure. Meanwhile, our diversified share portfolio achieved a 20% growth, reinforcing the value of long-term investing. As we look to 2025, we remain focused on maintaining financial discipline while embracing opportunities for growth, which I will report on a quarterly basis.
Images for expenses, net worth and investments is from Pearler.com. Use LUKE62560 is you wish to sign up.
Images of detailed investment movements, including capital gains come from Sharesight.