It’s that time again for this months instalment of the net worth and share review. This is a regular look at how little money I’m worth and how badly my investments are doing!
Net Worth Calculation
As promised last month, I said I would let you know how I calculate my net worth. The calculations used for net worth are fairly simple. Everything is split into assets and liabilities. Some asset values are reduced on a monthly basis to account for depreciation. Some are increased to account for growth in value. Both categories are added up and the sum of liabilities is subtracted from the assets.
Getting the bad stuff over and done with first. I don’t have many liabilities. The only consistent one is my mortgage. It is paid on a monthly basis, as I’ve mentioned before we do not overpay this at the moment. Because net worth is calculated on the same day every month it is possible that I may show credit card liabilities if they have been used to get extra points. Other than that I personally have no loans.
The figures here do not reflect any of my wife’s savings or liabilities. She does not have any credit card debt, but she does have a small loan that she is currently paying back.
I have a variety of assets currently including three bank accounts, two different share accounts and my house. The house value is reviewed every January and the spreadsheet is updated accordingly. I could do this task every month but I feel it’s not worth the hassle.
The car is classed as an asset as I own it fully. The value of the car is depreciated by £200 every month to account for the constantly falling value. I do however receive more than this from my company every month for using the car.
This month: £ 63959.58
Last Month: £63339.32
Growth on last month: 0.98%
I continue to add £500 per month to my share account (just on funds, no individual shares) and I have another £500 saved into an emergency fund. To see where my money is invested look here.
From January my emergency fund account is dropping the interest they pay from 5% to 3%. They are also dropping the maximum allowable account balance. Based on this I will probably start to use some of the money in the account to pay off the mortgage. Overpaying on the mortgage also allows a payment break in the future. This will be useful if there is an emergency and money becomes tight.
Last Month’s Value £16398
This Month’s Value £16834.70
Growth on previous month 2.66%
It hasn’t been a great month for the value of a lot of my individual shares or funds. The upcoming US presidential election is causing uncertainty in the markets. Trump starting to close the gap again is really making investors nervous. Following the conclusion of the voting next week we may see an increase in the markets depending on the victorious party.
Over here in Europe the Brexit situation continues to create significant waves. The British PM Theresa May has now been told she cannot invoke “Article 50*” without approval from parliament.
*Article 50 forms part of the “Treaty of Lisbon” It forms the basis of the process for any European member state to leave the union. A period of two years is allowed from the triggering of article 50 until negotiations are concluded
Net Worth Spreadsheet
Over the past week I’ve been working on a spreadsheet for logging all of my financial data. It’s going to include Net Worth, Share information, Expenses and Savings data. In next months share review I’ll make it available to download for free.
Is there any information that you record that I might have missed. Let me know below and I can add it in.