Net Worth & Freedom Fund – November 2014

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!

0 Comments

  • Anonymous

    Reply Reply 3rd December 2014

    Hi Huw,

    Recently stumbled across your blog and find it extremely honest and refreshing, I certainly wish you all the best in accomplishing your goals, which with your obvious commitments and enthusiasm I am confident you will achieve. I've read a number of times about your portfolio aspirations in meeting FI, have you paid any thought (and I use the term loosely as I don’t expect you to pay for thought :-)) to what your goal net worth would be when you achieve your portfolio goal of £250K, do you have a goal for net worth as well?

    Cheer
    AndyS

  • Huw Davies

    Reply Reply 3rd December 2014

    Hi Andy S,

    Thank you for the kind words. I really appreciate that!

    Currently I don't have a set long term goal for my Net worth. I'd like to see it increase each year, and if I concentrate on increasing my Investment Funds, then I have no doubt that will happen. The reason I don't have a Net Goal currently is mainly because of what goes into it. My student loan should finish in the next 8-10 years. I don't plan on speeding that up. I can't access my company pension for another 23 years, and at this point I could be a millionaire, so I'll just see it as a bonus. I'm currently not too interested in my home equity because we're happy here, and we don't plan on moving any time soon. However, I do want to make some headway on overpaying our mortgage, so we can eventually be mortgage free.

    For me right now the Net Worth is a 'nice to know' bit of information. I may in time have my sights set on a figure. I imagine the longer I track it, the more likely that will happen too!

    Thank you for enquiring, and wishing me luck. All the best to you in return.

    Huw

  • Special Agent Dividend

    Reply Reply 4th December 2014

    I like this addition to your blog, as you will get an accurate picture each month of the way you are heading, good or bad. It's great that you have no liability but student loan and a mortgage, as you are ahead of the game of most people right there. I wish you the best and will be following along your journey.

  • Huw Davies

    Reply Reply 4th December 2014

    Hi Special Agent Dividend,

    Thank you very much, I'm glad you like it. It's taken me a while to get to this stage, as I had debt in 5 figures a few years back. I'm pleased with how I've turned this around.

    I'm looking forward to seeing how my Net Worth will grow over time. I'm not sure what to expect but I'm sure the longer I do it, the more interesting it'll get. Thanks for stopping by.

    Cheers
    Huw

  • weenie

    Reply Reply 4th December 2014

    Hi Huw

    Nice, clear tables of your goals – I might have to pinch your idea for my blog!

    Your Freedom Fund Goal for 2015 is a very challenging one, understandably so because you found yourself having to adjust the goal posts for 2014 as you kept hitting them too easily!

    I for one will be cheering you on!

    Wishing you the very best with this goal and hope it's a great 2015 for all of us!

  • Tawcan

    Reply Reply 5th December 2014

    Love this new additional update on your net worth and FF. Looks like you want to double the value of your FF in 2015. Definitely going to be a good challenge. 🙂

  • Huw Davies

    Reply Reply 5th December 2014

    Hi Weenie,

    Ha ha. Your're welcome to pinch the idea. I was originally inspired by how good your tables looked, so you are partly responsible anyway!

    Tell me about it! Yes, the freedom fund goal is high and to be honest I find it slightly intimidating right now. I'm not quite sure how I'm going to generate the money yet. The fact I've publicly committed to it will result in me doing everything I can to get it. I'm a firm believer in Parkinson's Law too, so if I set my goal at £30k or £40k, I'm likely to hit those Goals within the time frame. Increasing my fund from £24k to £50k will involve saving 90-100% of my current salary!

    I'm trying a new Income Generating Stream as we speak. I'm not sure how it's going to work out just yet, but I'll will reveal all on this Blog. I plan on recording how I've done it and the steps I've taken, so if it works other people could try it. I'm going to continue researching other income generators and I'll share my thoughts with everyone.

    I'm glad I have you supporting me again next year. I'll need all the help I can get!

    Thanks Weenie!
    Huw

  • Huw Davies

    Reply Reply 5th December 2014

    Hi Tawcan,

    Thank you very much, I'm glad you like it!

    You're right, I want to over double it next year which is pretty outrageous, but I want to set the bar high. As I explained to Weenie above, I don't have the income currently, but I'm going to find a way! Wish me luck.

    Thanks for stopping by.
    Huw

  • Laura @ No More Spending

    Reply Reply 5th December 2014

    You have a challenging goal for 2015 Huw, but that's a good thing! Good luck! I can't wait to watch your progress.

  • Huw Davies

    Reply Reply 5th December 2014

    Thank you Laura. Yes, I really pushed the boat out for myself for 2015. I'm not sure how I'm going to achieve it yet. I agree with you, I think it's a good thing to test yourself and see what's possible. Thanks for stopping by and offering support, it means a lot!

    Huw

  • Dividend Life

    Reply Reply 8th December 2014

    Hi Huw,

    I'm looking forward to reading about your progress and seeing you meet your goals. You've provided a clear explanation of your goals and I wish you every success in exceeding them!

    I haven't set my 2015 goals yet but I usually set them with a fixed plan in mind so they're not very ambitious typically – kind of like me really 🙂

    Best wishes,
    -DL

  • Huw Davies

    Reply Reply 8th December 2014

    Hi DL,

    I'm glad you're interested in following my progress. I get a kick out of watching other people succeed and progress too. I hope I can achieve what I set out to do next year!

    I'm learning to be more ambitious nowadays. I used to hate failing at things, so I wanted my goals to be achievable. From writing this Blog, I've learned that when you set the bar high, it makes more of you to hit it. I'm not sure how I'm going to achieve my goal above, but I've put it in writing now and I'll just have to find a way!

    Thanks for the support! All the best to your 2015 goals too!

    Huw

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