Starting Point

Righto, where to begin?

A lot of the personal finance blogs I’ve looked at talk about Net Worth so let’s start there.

Net Worth is basically total assets less total liabilities (debts).

So in my case that’s:

Total Assets: £100,277.32 [*corrected from previous figure]
Total Liabilities: (£25,681.40)

Net Worth: £74,595.92

Should I be excited about this figure? I have no idea, except that as I save and pay off debts, it should go up, although most advice I’ve seen has been to recommend not paying off my BTL mortgage in full.

Anyway, here’s the breakdown:


Notes:
(a) Estimated figure, statement not due til August 2014
(b) Monthly payment of £147.95, final payment of £3,166.25 in Aug 2015
(c) Statement as at May 13, does not include contributions made Jun 13 – April 14
(d) Statement as at Nov 2013, does not include any contributions made Dec 13 – April 14

Figures will be updated when I have the info.

So my assets (not including property) total £30,327.32, which is 12.13% of my ultimate goal, which isn’t a bad start, I guess.

I shall do quarterly updates to track my progress.

2 thoughts on “Starting Point

  1. I think this is a great start! To be 12% of the way through your goal and you haven't been tracking it is impressive! It looks like you have a nice spread of savings and investments too. You'll be there in no time!

    Are you planning on paying the car off every month until next August 2016? I've not had a car loan like this before, can you do over-payments or pay it off early? I'm guessing you'll be charged for doing so, but it might be less in total than the interest you're paying on it every month.

    I'm not sure what 'good' looks like in Net Worth either. I think the important thing is personal progress. You've made the first step by recording what it is today so from here onward's you should see constant progress towards your goal of £250k.

    Good luck!
    Huw

  2. Thanks Huw! Let's hope I will remain focused as I have some challenging months coming up!

    The 3.04% interest is fixed on my car loan, so there's no reduction if I pay off the loan early. I pay monthly payments of £147.95, but the last payment (when the car finally belongs to me) will be £3,166.25. I intend to pay this using my cash ISA, which will put a big dent in my cash savings but since I'll have no more monthly payments to make, there will be more for me to save and invest!

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