Friday, August 9, 2013

Networth 2013

I have a New Year's tradition. On Jan 1 I update my books for my overall networth. I track it monthly, but it usually fluctuates due to changes in the market, higher or lower spending. Looking at it year over year shows the progress.

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?


3 comments:

  1. 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.

    I'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 :)

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  2. You have a two year head start, that's good.

    Can 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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Thanks for your input into the discussion.