In 2018 two of my macro goals are around my Net Worth, I look at my net worth both with and without home equity. My net worth without home equity is essentially my freedom fund for (early) retirement, I also look at it including Net Worth as this is one of the biggest assets I own. Despite being in my mid (late) 20s, I think it’s essential for everyone to actively plan their later years for a number of reasons.
I decided to change the time I looked at my Net Worth and my freedom fund, I first did this exercise on the 14th of the month and had done it on that day every month since. It didn’t make sense so I’m now looking at it on the 2nd or 3rd of the month after I’ve been paid at the end of the month and also after the mortgage has come out of my account.
Freedom Fund £41.7k / £75k (+£6,158):
The growth in this goal at over £6k is well above my £3k target for the month, however, it’s so much because of the change in dates. It’s comparing 14th December to 3rd Feb during which I’ve been paid twice, hence the bigger increase.
January was a fairly solid month, although towards the end of the month a drop in both UK and US equities meant my stocks and shares ISA took a bit of a hit. Hoping it’s just been a bad week, but I’m investing for the long-term and will ride out any volatility.
Net Worth inc. Home Equity £200.8k / £260k (+£723):
Kept this number above £200k, just! The large increase in my freedom fund, which comprises part of my net worth, was offset by a £7k reduction in my house price according to Zoopla which is how I’m going about valuing my property. To net out positive is promising given the fact I think that the Zoopla estimates are below what my home is worth, this volatility is why the Freedom Fund is probably the best thing to look at in terms of a primary indicator for me.
Given the change of date at which I calculate these numbers, I’ll endeavor to keep to a strict schedule and also attempt to put together some posts in between!