So a couple of months ago I shared that our net worth had fallen off a cliff. You can imagine the anticipation as I went to do our May net worth calculation in the Financielle app!
So anyway I sat down to do May’s net worth and, as can often happen in the world of stocks and shares, there had been quite a rebound!
Our net worth was finally trending upwards again – but why?
We didn’t do anything different. We paid our mortgage, invested excess cash into our pensions – we didn’t even do LISAs or ISAs this month. We put no extra money in savings, we had no work bonuses.
The market has just had such a big upturn since the drop Feb > March that it feels that a huge leap
So what does this mean for us?
Nothing. We may feel a little better, but practically not much has changed. Our mortgage is lower, our savings have grown a little and our long term investments for retirement have jumped quite a lot – but as we know from the merry go round of equities – it can go up and down like the big dipper.
Our net worth has increased 8.4% in the last 12 months, here are some examples of what that increase could be with different figures:
| Net Worth | Increase of 8.4% |
| £10,000 | +£840 |
| £100,000 | +£8,400 |
| £500,000 | +£42,000 |
| £1,000,000 | +£84,000 |
Whilst this isn’t necessarily real, in-your-pocket cash – it is your net worth and at Financielle we believe it’s a key metric to track month on month.
But why?
- You’re providing for your future – retirement is closer thank you think! Most older people anecdotally say they wish they’d have started saving more for retirement and sooner
- It gives you confidence, seeing the output of your money decisions each month
- When you’re busy budgeting, putting money in sinking funds and paying off debt – it can feel like you’ve not got a lot – AKA financielle poor. Tracking your net worth can help remind you that your decisions are growing your net worth!
That’s why the Financielle method works.
- Maximise your income
- Optimise your expenses
- Put the difference towards money decisions that increase your net worth.
Whether that be paying off consumer debt, saving for an emergency home or investing (or a combination), all these actions positively improve your net worth – while hopefully having a life at the same time!
Tracking your net worth is one of the best things you can do to see your money journey over time – go do it now in the Financielle app.
