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.
Here’s where I stand in January 2018:
Net Worth £39.5k / £75k (+£3,985):
My goal provisioned for £3k growth per month, this number grows from paying down our student loans, contributing to SIPP pensions, work share schemes as well as Stocks and Shares ISA’s. I resumed my regular Nutmeg contribution following some high spending months prior to Christmas, the growth this month was £3,986 which was a healthy growth – it would have been a record month if we hadn’t needed to invest in some landscaping after some fence blew down in the strong winds the UK has been experiencing lately!
Net Worth inc. Home Equity £191.9k / £260k (-£8,231):
Moving in the wrong direction on this metric! This was due to a drop in our house value according to Zoopla, I saw a big appreciation in the value using this methodology in November which resulted in our worth increasing £23k in a single month, it looks as though that big jump may have been over-stated! For the annual target, I had only factored in modest house price growth as it’s a massive variable outside of our control, over the course of the year I’m confident that things will balance out on the house value side of things as we’ll be able to achieve this goal from growing our net worth as above and also paying down our mortgage.
It’s been a mixed start to the year with savings starting strong but our house value looking like it’s dropped a fair bit, the main thing to focus on is what’s in our control and our Net Worth increase of almost £4k for the month is a great start to the year. I’m hoping to average over £4k increase over the course of the year, we have a relatively quiet part of the year coming up, but we are yet to book any holidays which could through some spanners into the works!