Net Worth & Freedom Fund: May 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 May 2015. 

Freedom Fund
H&L ISA £24,140.36
iWeb ISA £2,634.87
iWeb CMI £6,821.26
Peer to Peer Lending £86.35
Freedom Fund £33,682.84
% of Goal 13.47

My 2015 Freedom Fund Goal is £50,000 (20% of Target)

My FF at the start of January was worth £25,030.75. After 5 months it’s increased to £33,682.84 (34.6% increase). I’m delighted with this increase, but if I were to carry on at this level I would fall short of my £50,000 Goal. I’m currently averaging an increase of £1,642 per month and if I continue with this amount for 8 months I’ll finish the year on £45,177. 

My Kindle income is increasing each month and I’m hoping that this will significantly increase my contributions in the second half of the year and help me hit the £50,000 total I’m after. 

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 £33,682.84
Company Pension £8,492.89
Cash Saving £3,603.84
Home Equity £21,160.04
Student Loan -£5,254.07
Net Worth £61,685.54
My 2015 Net Worth Goal is £80,000 

My Net Worth at the start of January 2015 was £52,315.10. After 5 months, it’s now increased to £61,685.54 (17.9% increase). 

In the minimal time I’ve been tracking my NW (6 months), my monthly average increase is £1,761. If I carry on with this level of increase, I’ll be on £74,012 at the end of December, which will put me short of my £80,000 target. 

Freedom Fund / Net Worth Tracker 

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 £32,116.30 £59,456.71
May £33,682.84 £61,685.54
2015 Goals £50,000 £80,000

How was May for you? Are you on your way to hitting your goals this year?


  • Dividend Drive

    Reply Reply 12th June 2015

    That is good progress, Huw. Even if you're a little behind on your freedom fund target value. You still have 6 months to catch up with that!

    Very impressive that your portfolio is still yielding over 5%. My recent binge on more dividend growth rather than yield recently has meant my portfolio yield (on price, not cost) has dropped to a little under 4%. I am probably looking to hike that up again soon, however. But I don't mind if it hovers around there. It is a nice compromise figure for me.

    I am doing pretty well with my goals so far. All seem on track at present. Have to wait and see at the year's end though!

    Keep up the good work!

  • weenie

    Reply Reply 13th June 2015

    Hi Huw

    Some great progress there and although behind on your goals, there's every possibility that your Kindle income will haul you back on track.

    I'm pretty much on track for my financial goals, although the wobble in the markets this month may see some of my numbers going backwards!

    Hope you have a good weekend!

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