Net Worth 0 – August 2014

My main aim for this site was to anonymously share my net worth, so here we go – I’m putting all my numbers out there.

Let’s start with the data:)

I’ve displayed this month, last month and last years values for comparison.

 

Category Aug 2014 Jul 2014 Monthly Change Aug 2013 Annual Change
Cash £42,799 £28,361 £14,438 £13,902 £28,897
Investment (ISA) £6,179 £5,811 £368 £2,000 £4,179
Pension £61,042 £60,208 £834 £50,829 £10,213
Home £335,666 £335,666 £0 £260,000 £75,666
Car £3,600 £3,700 -£100 £4,800 -£1,200
TOTAL ASSETS £449,286 £433,746 £15,540 £331,531 £117,755
Credit Card -£1,014 -£4,152 £3,138 -£4,314 £3,300
Mortgage -£162,238 -£163,171 £933 -£173,587 £11,349
HMRC Taxes -£19,273 -£15,958 -£3,315 -£1,998 -£17,275
TOTAL LIABILITIES -£182,525 -£183,281 £756 -£183,281 £756
NET WORTH £266,761 £250,465 £16,296 £148,250 £118,511

 

So to bring a bit more context into these rather dry numbers, I’ve elaborated on my categories below, and added a bit of insight to my personal situation, as we are all different.

 

Cash

  • This includes my high interest current account, cash ISA savings and Peer to Peer savings.
  • This fluctuates a lot as I get paid quarterly (and I got paid this quarter, so looking very healthy now)

Investment

  • This is my long term investing in a tax sheltered NISA (and £1k of shares I’m waiting to rise)
  • The aim is to through all my money in this and max it out with £15k each year going forwards

Pension

  • A combination of an old employer pension, and a SIPP I pay my pension into now and self manage
  • Currently pay £1k a month into the SIPP

Home

  • My house where I live, it’s a lovely 3 bed semi in Outer London
  • I value this using the Nationwide House Price Index, I’ve also done loads of improvements, which haven’t been factored in

Car

  • My run-around – I depreciate this by a fixed £100 each month, and check if against used prices occasionally and adjust as needed

Credit Card

  • A balancing item for any items on credit cards – I pay these off monthly and don’t carry any balances month to month, but as I count my current account balance as a cash asset, need to offset this

Mortgage

  • The mortgage on my home, am very happy that this is now < 60% LTV
  • I have been overpaying this by £500/month, this money is now going to go into investments after I remortgage

HMRC Tax

  • As I’m self employed I need to pay my own taxes, this includes any amounts I owe HMRC, both from the previous tax year that isn’t due yet, and an estimated amount from this year’s work. This includes the final part of my student loan, which will soon be history
  • I keep enough money in cash to cover this liability
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11 thoughts on “Net Worth 0 – August 2014

  1. Thanks for sharing your net worth with us. I’m curious to know if you are investing in many dividend stocks for current income and plan to share your investment portfolio with us.

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    • Lovely to hear from you. Happy to share my investment strategy and portfolio – what a great idea for my next post. Thanks

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    • Thanks, it’s been a code year financially, I now need to put some more focus in and work towards my long term goals – it’s kinda scary how most of my money is tied up in my house.

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  2. I wrote a comment a few days ago but I think my connection timed out and it never appeared.

    That’s an amazing networth increase! How did you gain such a big jump in house value? Also are you planning to convert the large cash pile into investments?

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    • Thanks Guy, thanks for your comments.

      I’m liking the increased numbers, as you noticed it’s mainly it’s due to increase in house value, living in London…..It seems steep the increase, but I’m comfortable using it as similar houses in my street have sold for much more recently, so I feel I’m being conservative if that makes sense? Appreciate everyone isn’t as lucky with property values at the moment.

      As I work freelance, I get a decent daily rate but have no job security – thus I like to keep around 6 month’s expenses in cash, and I also have a massive tax bill to pay of £20k in January, which accounts for a lot of the cash. So no plans to move this into investments sadly 😦 .

      I’ve been soldily in work over the last year (and taken hardly any holidays) which has made it such a good year – it really makes me think if I need a holiday, not getting paid for them.

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    • Thanks Jay, agree they are very encouraging numbers (last year was rhe first year I made this much). Long may it continue – and lets hope I manage to keep lifestyle inflation at bay.

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  3. Nice numbers! My jaw kinda dropped when I saw your mortgage but I guess you’re on a decent salary as a consultant in London so it’s all relative! Good luck with your financial journey!

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    • Thanks Weenie – when I took the mortgage out three years ago I thought it was massive too, but nowadays it just seems normal (or even on the low side of normal) for London. It’s scary how such large debts become normalised in our society.

      On the balancing side of the equation, house prices have definitely increased in this region, and as I paid a good price for my house at £250k, I’m confident it’s appreciating massively and much more than any interest on the mortgage.

      I’m working freelance now, which gives me more than enough to cover the mortgage, and I’ve overpaid by £6k a year for a few years. However once I re mortgage at the end of my fixed rate I’m going to invest rather than overpay.

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  4. Pingback: The Net Worth of Personal Finance Bloggers

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