Net Worth Newbie - net worth newbie

I’ve been following various bloggers tracking their net worth for a couple of years or so. Over the past few months, there seems to have been a little flurry of posts from some of my favourites focusing on net worth.

After reading some of these, I realised that I track literally every other aspect of my financial life, but this was one thing I didn’t have a full grip on. I mean, I had a rough idea, but tracking my net worth on a page in black and white? I am a newbie!


I built a super simple net worth tracker spreadsheet and started on December 8th. I’ll be updating this on the 8th of each month going forward.

All well and good, but the one thing I have struggled with is how exactly to calculate the magic number. There are so many variations on what people think should be included and I can see it from all sides!


The Sticking Points:

Property: OK, so I own a house worth approximately £120k. The mortgage owed is £87k. Technically my home equity is £33k. But this isn’t exactly a liquid asset, is it? When I retire, I’ll still need somewhere to live.

Perhaps if I was living in a bigger family home, I would include that as an asset as I would likely sell up and downsize after retiring.


In this post, Joe over at Retire by 40, focuses on the percentage of your net worth that is tied into your primary residence.

This is an interesting way to look at it. It’s not something I would be putting a lot of effort into tracking at this stage of my life, as there are too many potential variables standing between me and retirement.

I do, however, think this would be more relevant to the overall picture closer to retirement.


On the other hand, Luke, at Consumerism Commentary, is extremely persuasive with his stance, insisting that a financial liability is not a physical object. Therefore your house is is an asset.


This is the one real biggie that has me torn. I have decided to track it both ways, one figure simply excludes the value of my home.


Student Loan: My current student loan balance stands at £24,000. Like most UK graduates, I repay the minimum (working out to around £50) from my paycheck each month. If I was in the situation where I needed to liquidate my assets, I assume I would not have an income in this scenario.

If this was the case, I would no longer be liable to make repayments until my income reached the threshold again.


Being on a Plan 1 loan means my balance is written off 25 years after graduating. This is actually calculated from the end of the tax year in which you graduate. So my 25 years began in April 2012. This will make me 50 years old when the loan is forgiven.

Whichever way you look at it, it is not a loan which, like any other, I will carry into later life or that will still be relevant should I fall on hardship.

For this reason, I have chosen not to include it in my liabilities.


The Current Picture

So on January 8th, this is where I stood - net worth january 2019


This is pretty much exactly where I would expect to be at my stage in life. I bought my first home just over 3 years ago with a mortgage, so this obviously makes up a huge chunk of both my assets and liabilities.

Until 5 years ago, I mostly worked freelance or bounced between short term contract jobs meaning I had no workplace pension. And I only started saving when I wanted to buy a house, then most of my money went towards the deposit and furnishing. All of this makes for pretty dismal reading!


I know I am almost setting myself up for disappointment by committing to track this monthly. It’s not likely to be taking any huge leaps upwards any time soon, if anything, it’ll go down significantly once I’ve finally bought my new car.


I am really hoping to push myself to both save more and pay more off my mortgage this year, so hopefully it will spur me on a bit.

I’m going into 2019 debt free, whereas last year, I had £1200 of credit card debt to clear. Logically, this is another £1200 which I can divert straight into savings.


I’m putting off setting my annual targets in stone yet, as I’m expecting a pay rise in the next couple of months.

At the minute, I’m basing my budget on my current salary so the real plan is to throw any extra income at my savings/mortgage.


Rather than boring you all to death with regular posts on my barely-moving net worth, I’ll be updating it monthly here.

2018 Financial Goals: A Halfway Review - August Review Financial Goals 2018

Well guys, I thought it was about time I faced facts and had a look at how I am actually doing with my financial goals for the year. We’re more than half way through and some of my time sensitive goals are past their sell by date.


Back at the beginning of the year, I published what I wanted to be my financial goals for the year. You can check out the full post here

I like to have specific goals in mind each year as I find it very difficult to save money with no motivation, nothing to work towards. Since then, I’ve had a bit of a revision of these goals during my first quarterly review, so what I have listed below are the all new and improved version!


“Save £800 by June to cover my half of car insurance on both cars (when we eventually buy a new one)

Save £1500 to supplement my new car fund by July”


I’ve managed to pay off my car insurance all in one chunk again this year, which is awesome. I love the feeling of just not having to think about it for another year! I really would recommend this to anyone, it might take you one year of struggling to get the fund to pay upfront but I find it so much easier to save through the year when your regular outgoings are lower.


I feel very little sense of achievement from saving this pot and I was very sad to spend it all again, but I do need to remind myself that saving for next years car insurance isn’t really saving!

Continue reading “2018 Financial Goals: A Halfway Review”

2018 Goals: How Do I Measure Up So Far?

Formerly Skint - 2018 Goals A Review

Guys…It’s almost April. The first quarter of 2018 is officially over.

Exactly one week ago, to the hour, it was snowing. Today, I am writing this in my garden with a gin cocktail in hand. Granted, I am well wrapped up, but it is a beautiful day!


I thought this would be as good a time as any to have a look back over my financial goals for the year, since we are fast approaching the July deadline which I’d set on a couple of them.

I have always been well aware that these would change through the year and I’m fine with that, as long as I have a starting point though, I really do need motivation to save money.


You can read the full post on my financial goals for the year here.

My financial wishlist looks something like this…

Continue reading “2018 Goals: How Do I Measure Up So Far?”

Money Diaries XL: February Review

February Money Diary Review Info

Some time mid January, following a session of binge reading Refinery29’s Money Diaries series, I decided to track and share my own spending. Having completed one whole calendar month of this, I’m kind of surprised by how unsurprising the results are. I thought it would be easier to make sense of this and budget going forward if I broke it down to a percentage of my monthly salary.

The infographic above (which I have LOVED producing!) shows the breakdown of my month.

Continue reading “Money Diaries XL: February Review”

Money for Nothing? 4 Ways to Earn Cashback as You Shop - Earn Cashback on your Shopping

Over the years, I’ve seen countless adverts for cashback websites.

Cashback credit cards, cashback bank accounts, cashback rewards are everywhere!

I paid very little attention to it in the beginning, assuming it must be a bit of a scam. Surely anything offering to give you free money just for spending money must be a scam, right?

Not necessarily…Now, as I have mentioned before, I am no financial expert. I do not claim to have any qualifications making me the person to trust with your money. I do, however, have a keen eye for saving, and a slight obsession with money in general, and over the years, I’ve built up a fairly useful set of personal financial planning tools.

In the months leading up to buying my apartment, a good work friend had mentioned one day that she had logged into her long forgotten TopCashBack account only to find that she had £300 of cash rewards sitting there waiting to be claimed. My first thoughts? Bullshit.

Continue reading “Money for Nothing? 4 Ways to Earn Cashback as You Shop”