I haven’t done a net worth update post for a while, so now seems like a good time to get back into the habit. I have, however, been tracking my net worth in the background and can say that it has been quite motivating to see my progress.
From when I started tracking this a year ago, I have seen a 20% increase in my net worth, which I think is fantastic. It is almost all from paying off debt and increasing savings.
I have three pensions which have increased by about £9k in the past year. I am looking to consolidate these into a SIPP so I may control how they are invested and cut the fee I am being charged. I am waiting until I finish at my current job (in one week!) so I can take them all at once.
I have been focused on paying down debts and building up my buffer. I now have 3 months ‘buffer’ in place which I built up much quicker than expected (thanks to selling my car), I can start investing as it is now safe to do so. I view this as a huge achievement and very comforting to know I could stop working for 3 months and have no worries.
I should note that I do include my equity in my flat into this calculation and that stands around £200k. It is a net worth calculation rather than a FIRE fund calculation.
I am going to look at different ways to calculate this and track so any suggestions would be welcome. I didn’t bother tracking it much as I have been so focused on debt paydown and savings that it did not matter much until now.