Net Worth & Freedom Fund – March 2015

Freedom Fund

The accounts below 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 approximately £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

The numbers in the tables below were accurate as of 31st March 2015. 


Freedom Fund
Stocks & Shares NISA £23,793.75
Taxable Shares Account £6,605.97
Peer to Peer Lending £109.90
Freedom Fund £30,509.62
% of Goal 12.20


My 2015 Freedom Fund Goal is £50,000 (20% of Target)
My Freedom Fund has taken a bit of a hit this month, as I sold some shares to fund my Kindle Publishing project. 

My FF at the start of January was £25,030.75. After one quarter my FF has increased to £30,509.62 (21.8% increase). This represents an increase of £1,826* per month, which for me is huge. If I continue to increase my FF by this amount over the next 9 months I’ll end up with £46,946 by the end of the year, which is short of my £50,000 goal. I have some work to do!

*It’s worth pointing out, the majority of this is due to the increase in value of most of my stocks. 

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.

Net Worth
Freedom Fund £30,509.62
Company Pension £7,921.10
Cash Saving £3,787.94
Home Equity £20,712.36
Student Loan -£5,391.07
Net Worth £57,539.95
My 2015 Net Worth Goal is £80,000 

My Net Worth at the start of January 2015 was £52,315.10. After one quarter, my Net Worth has increased to £57,539.95 (9.9% increase). 

In the minimal time I’ve been tracking my NW, my 4 month average increase is £1,606. If I carry on with this level of increase, I’ll be on £71,993 at the end of December, which will put me short of my £80,000 target. I need to increase my average to £2,495 for 9 months to hit my desired total. 


Freedom Fund / Net Worth Tracker 

2014 Freedom Fund Net Worth
November £24,538.41 £51,113.76
December £25,030.75 £52,315.10
2015 Freedom Fund Net Worth
January £30,082.66 £54,815.13
February £31,265.05 £56,908.20
March £30,509.62 £57,539.95
April
May
June
July
August
September
October
November
December
2015 Goals £50,000 £80,000


How has quarter 1 gone for you? Are you on your way to hitting your goals this year?

0 Comments

  • Tawcan

    Reply Reply 2nd April 2015

    Looks like you're making great progress on the net worth category. Although freedom fund is down a little bit compared to last month I wouldn't worry about it due to the market volatility. Keep up the good work.

  • Anonymous

    Reply Reply 2nd April 2015

    Huw

    I am a great believer in setting challenging goals and then working like hell to achieve them. I get a great buzz out of chasing the goal down and an even bigger buzz out of achieving it. When we are investing we are at the mercy of the markets and what they want to do. I recall 2011-12 putting money into my ISA each month just to see my account slowly go down in value as the markets fell. The upside of that was I was buying into the market when it was cheap and 2012-13 it took off like a rocket.

    You are doing a great job with your investments and I for one take a great deal of inspiration from you. After speaking to you for no more than 5 seconds I could see and hear the passion and desire you have for this and I am 100% sure you will hit all of your goals.

    For me the end of Q1 is the end of my year as I always track the financial year in my ISA. 2014-15 has been a good year for us and we have come out 11.36% above our target largely thanks to some great market gains since Christmas.

    Hope you have a nice long weekend

    Richard

  • sparklebeeblog

    Reply Reply 2nd April 2015

    Well done Huw. My investment funds have taken a knock this month too – I was doing well with an 8% NW growth from the start of the year but this has dropped to 6% due to the market drops this month. I have bought shares this month that have dropped but I am expecting them to grow long-term. I have also seen that my investment funds have offset each other a bit – those that have dropped have been balanced slightly by those that have increased, shows that my investment diversification is starting to work.

    I have no P2P exposure and not sure if that is another investment area for me or not – need to research. Also downloaded your book! sounds from the posts like this helped to up your ratings. It would be interesting to know more on how you publish on amazon.

    Good Luck for April and enjoy the Easter break!

  • Hi Huw

    Nice net worth increase of 9.9%. I've also had a fabulous Q1 '15 with net worth up 11.2%. Given where I am in my financial journey this equates to multiple years of living expenses so I'm really happy. Positively it's also come pretty evenly from both saving and investment return which hopefully means compound interest is finally starting to do its thing.

    Cheers
    RIT

  • Mr Zombie

    Reply Reply 3rd April 2015

    Hi Huw,

    Good work once again buddy! What do you use to estimate your house equity? I use Zoopla and it is all over the place some times.

    I downloaded a copy of the book you put on Amazon, first chapter down 🙂

    All the best

    Mr Z

  • weenie

    Reply Reply 3rd April 2015

    Hey Huw

    Solid progress there on your Net Worth, nice one.

    Your Freedom Fund may have taken a hit this month but that would surely get cancelled out by income your receive from selling your ebooks. You mentioned that you haven't really done any marketing for them so I can't wait to see how your sales go when you do start doing this!

    Cheers and have a great weekend!

  • Huw Davies

    Reply Reply 4th April 2015

    Thanks Tawcan!

    I withdrew more money from it than I added to it and the value of some of my shares went down, so this time around it was expected. I'm not at all deterred! 🙂

    Cheers
    Huw

  • Huw Davies

    Reply Reply 4th April 2015

    Hi Richard,

    I like your style! I'm sure I'll experience your drop and rocket phase a couple of times in my lifetime. There's part of me that's looking forward to the test, but I'm happy with the FTSE being near an all time high too for the moment.

    You're too kind Richard! That means a lot to me. It's very nice to hear someone describe me like that as that's who I want to be! I have a lot to do this year, but I take it in my stride. If I don't manage my goals I'm going to be close and I know I would have made great progress either way.

    Your Q1 sounds fantastic, well done Richard! I wish you Blogged yourself, as I in turn find your results inspiring and look forward to the time I'm in your position on seeing FI in the distance.

    Have a great Easter!
    Huw

  • Huw Davies

    Reply Reply 4th April 2015

    Hi SparkleBee,

    I hope you're well!

    I don't know about you, but I don't tend to worry too much about the value of the shares. I don't intend on selling them so the price is less relevant. I'm interested in what they d long term, and more importantly the income they produce.

    I've done well from P2P lending, but I'm more interested in shares personally. I like the capital growth element and the fact the dividends (should) increase over time, whilst the income on P2P is fixed, and could stop at any moment the person/company folds.

    Thank you so much for downloading the book. I really appreciate the support! I hope you find value from it from a running or publishing perspective!

    Thanks again for the well wishes and I hope you have a great Easter yourself!

    Cheers
    Huw

  • Huw Davies

    Reply Reply 4th April 2015

    Hi RIT,

    Thank you very much. Congrat's on your Q1, that's fantastic! Like you said, considering you're nearing the end of your FI journey that's outstanding!

    Very inspiring stuff, keep up the good work, and thank you for sharing your great news!

    Huw

  • Huw Davies

    Reply Reply 4th April 2015

    Hi Mr Z,

    Thank you so much. I use Moneysavingexpert's mortgage calculator to work out how much of our mortgage we'll have after yr 1, 2, 3, 4, & 5. I then split the difference between the years by12 months, and add that amount each month. I 'estimate' the house price on rightmove, and in Herefordshire things move very slowly. I'll just keep the same home value for 1 year and check it again the following year.

    Thank you so much for downloading the book, I really appreciate that! I hope you find value in it in some way, even if it's not for running.

    Have a great weekend!
    Huw

  • Huw Davies

    Reply Reply 4th April 2015

    Hey Weenie,

    Thank you! It's been a slower month than I would like, but it was inevitable with me taking money out of the account. Like you say, I should start to reap the rewards of that from my Kindle income over the rest of the year, which would outweigh the dividends I'd receive in those shares.

    I'm planning on setting up some box sets of my work and producing hard copies of my books to branch out further income streams, but without having to pay extra money for it. I'm excited by exploring marketing further and eventually getting a virtual assistant to cover a lot of the work I don't enjoy.

    Have a great Easter!
    Huw

  • Theres Value

    Reply Reply 4th April 2015

    A great quarter all round I'd say! Keep up the good work. I'm sure your Kindle project will rapidly take off as you begin promotions on each otf the books. This will help you ramp up the progress towards your goals. I'm posting on Sunday night about our progress this first quarter.

    Cheers

  • Looking great, Huw! That student loan is inches from being all paid for, that'll be a huge reason to celebrate and free up even more cash for investments. Keep it up and thanks for sharing!

  • Huw Davies

    Reply Reply 6th April 2015

    Thanks M!

    I'm hoping that over the course of the next few months the kindle will really kick into gear and help me turn around this deficit. I have confidence that it will make that kind of money for me eventually, but I'm not sure if I'll be able to do it in 2015. Time will tell!

    Thanks for the heads up on your post, I'll check it out shortly!

    Cheers
    Huw

  • Huw Davies

    Reply Reply 6th April 2015

    Hey Ryan,

    I hope you're well!

    I'm happy letting the loan trickle along, but I'm glad it's coming down. Excluding this month my NW has been going in the right direction too. Thanks for stopping by!

    Cheers
    Huw

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