I recently added a new page to the Blog which tracks my Net Worth and Freedom Fund. I'm going to be recording the value of each one at the end of every month, just as I do with my Dividend Income, Portfolio Value and Income & Expenses.
I've written a brief description to how I calculate these numbers below.
I worked out my Net Worth and Freedom Fund value on 20/11/14. There has been a marginal change since then. I'm not going to go into detail on this post due to the insignificance, but on future posts I'll explain where the increase or decrease has come from.
Here are the current values, which were accurate as of 30th November 2014.
| Freedom Fund | |
| Stocks & Shares NISA | £19,263.99 |
| Taxable Shares Account | £5,169.57 |
| Peer to Peer Lending | £104.85 |
| Freedom Fund | £24,538.41 |
| % of Goal | 9.82 |
| | |
| Net Worth | |
| Freedom Fund | £24,538.41 |
| Company Pension | £6,766.75 |
| Cash Saving | £5,656.67 |
| Home Equity | £19,817.00 |
| Student Loan | -£5,665.07 |
| Net Worth | £51,113.76 |
Freedom Fund
The top table displays the investments that make up my Freedom Fund. These accounts generate income for me, and my long term goal is for that income to increase to a level that covers my expenses on an annual basis. The amounts display the current value, not the cost.
- My expenses are currently under £10,000 per year (£833 per month).
- The average yield from my dividends is currently over 5%. To be conservative, I've based my Freedom Fund's yield on 4%.
In order to cover my expenses, I will need a portfolio worth £250,000. This will generate £10,000 a year of income. My goal is to achieve all of this by my 40th birthday which is 5/11/22. (There will be fireworks when I reach these numbers!)
My 2015 Freedom Fund Goal is £50,000 (20% of Target)
Net Worth
My Net Worth includes the Freedom Fund, Company Pension, Cash Savings, and my Home Equity*. It doesn't include valuables within the house, my car, joint accounts or any of Miss FFBF's possessions and home equity. My Net Worth is funded solely by me.
My only liability outside of my mortgage is the Student Loan.
*My Home equity is calculated by an estimate of our house price (reviewed monthly), minus the size of the mortgage (also reviewed monthly), and dividing my share of the home equity.
My priority is with the Freedom Fund as this is my ticket to FI. I don't have a long term Goal for my Net Worth but I will set an annual target.
My 2015 Net Worth Goal is £80,000
Let the tracking commence!
| 2014 | Freedom Fund | Net Worth |
| November | £24,538.41 | £51,113.76 |
| December | | |
| | | |
| | | |
| 2015 | Freedom Fund | Net Worth |
| January | | |
| February | | |
| March | | |
| April | | |
| May | | |
| June | | |
| July | | |
| August | | |
| September | | |
| October | | |
| November | | |
| December | | |
| 2015 Goals | £50,000 | £80,000 |
Thanks for reading!
Labels: Net Worth & Freedom Fund