I also look at how much my networth changed compared to my income, and how my assets are distributed.
Increase in Networth as a % of Income
Year
|
Increase in NW as a % of Income
|
2008
|
58.0
|
2009
|
41.6
|
2010
|
36.3
|
2011
|
35.9
|
2012
|
49.3
|
2013
|
49.0
|
For most years I have been able to keep my networth increasing by more than 40% of my income, which is well beyond my goal of 25%.
Asset Distribution (%)
Year
|
Cash
|
Non Registered
|
RRSP
|
TFSA
|
Real Estate
|
2008
|
37.3
|
40.9
|
5.4
|
16.4
|
0.00
|
2009
|
26.1
|
51.2
|
13.5
|
9.2
|
0.00
|
2010
|
2.3
|
12.7
|
4.4
|
4.8
|
75.9
|
2011
|
2.7
|
13.9
|
7.2
|
5.9
|
70.4
|
2012
|
5.4
|
15.7
|
9.3
|
6.7
|
62.9
|
2013
|
9.5
|
18.4
|
11.9
|
5.9
|
54.2
|
Goal
|
10.0
|
Balance
|
Maximize
|
Maximize
|
Minimize
|
For my assets, my goal is to keep 10% in cash, which also includes my emergency fund. I want to maximize my RRSP and TFSA. For real estate, I want to pay down my mortgage as fast as possible, but I don't want my house to be the primary contributor to my net worth. I don't consider my main residence as a real part of my networth, as the value isn't realized as long as you live in it. Rental properties or investment properties are a different story, but I don't have those in my portfolio yet.
What are your Goals for your Networth? How often do you track it?
Posts
That's an impressive year over year increase! I haven't been tracking my net worth increases as a percentage of my income, but it's certainly an interesting (and telling) way of doing it. My last 3 years I've increased by approximately $10k, $22k and $33k in successive years. I half jokingly said I wanted to see a $40k increase this year, but I'm not sure that I'll actually make it. I'll try, but we'll see.
ReplyDeleteI've only ever set myself two hard and fast net worth goals: $100,000 by 30, and $1,000,000 by 40. I set those numbers when I was in my early 20's, with no idea how I would actually accomplish it. I track it at the end of every month. I ended up making my $100,000 goal by 28, so here's hoping I'll make the second goal as well :)
You have a two year head start, that's good.
ReplyDeleteCan you tell that I lived with mom and dad in 2008 while I waited for my house to be finished.
The other thing is that my expenses have been roughly the same during that time, but have made more income year over year, so both the networth increase in dollars and percentage is increasing.
Have you run the numbers on how you will get to a million by 40? Any ideas?
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ReplyDeleteThank yyou for being you
ReplyDelete