My quest to have £100k Net Worth by 26

rictus123

Well I am taking all the advice on board, thanks so much everyone. I didn't mean I wanted an x5 or simular now. I meant once I have reached a "wealthy" stage I will buy an older one. I would never buy a brand new car as wouldnt be able to bear driving off the forecourt knowing I have just lost 25% etc of my money driving out of an overpriced car dealership.

I know some of you guys are saying don't include mortgage on own home or value of own home but the way I see it is if you have equity in your home it should be included as it means you are worth that difference in ltv compared to someone renting. Obviously debt free in 10 would be great and very realistic I'd think. On a salary of 50k just now for 30 hour week, with my own work on top of this paying down a 100k mortgage shouldn't take long. Then will probably leave that as my buy to let and get forever home. I'm trying not to have the I want it now attitude and remember I will get there eventually. First to do is clear every single penny of debt off by the end of summer if possible so I can save a cash reserve by the end of the year. I will probably save up 16kish before I pay off debts so I'm not left debt free but skint. Will be looking to advertise soon to take on more work. Made 1800 extra this month, long may it continue.

dib-dab

Wow I certainly admire your dedication rictus, I am 30 and only just starting to save having paid off a whole heap of debt.

I personally couldn't do what you are doing as I am definitely a live for today kind of person so as long as I can still save I have to have fun too and find it very hard to turn things down, I could save a lot more if I tried but it just makes me unhappy having to deny myself all the time.

But I really hope you have what it takes and wish you all the best with your challenge - clearly you are much more committed than I am and this is seriously impressive at your age when most people will be spending a fortune on beer every weekend! Even if you don't manage the 100k I am sure you will still do very well.

darkpool

rictus123 wrote: »

On a salary of 50k just now for 30 hour week, with my own work on top of this

WOW!!! 50k a year for someone in his twenties for working a 30 hour week!!!

What do you do? I know hundreds of people in the building sector struggling to get by, you know what with the worst recession for the best part of a century. It might be good if i could tell them which building trade earns that type of money?

fieldofdreams

Good thread, great to have such good intentions being so young. Reading all this prompted me to calculate my net worth, which came in at approx 130k including house equity and pensions (but not car). At 33 years old Im pretty happy with that - Ive worked really hard the last few years which has resulted in me being able to pay off my mortgage on my modest house so next goal is to further build up my savings, investments and pensions

Good luck, will following this thread with interest

rictus123

As someone pointed out 225000 today will be worth a million in 2060 when I am 69. Retirement age will most likely be 70 or even not exist by the time I hit that age. Ultimate goal is to be a millionaire. Obviously the sooner the better but with the value of money changing I'm sure I will achieve it before I'm 50. I will be including house equity as o believe it counts.

After my trip to america in April I should only have 2 or 3 months then il be debt free and at least breaking even on net worth calculations. I will build it up through emergency fund and savings to buy a house but whatever I spend on fees,moving costs, furnishing and mortgage interest will all give my net worth a knock down a bit.

After america the holidays and cars will be on hold for a minimum 3 years if possible. Il find a decent van for work,sell my car and that will do me 3 years or so. With fuel being so high aswel it doesn't make sense keeping my low mpg performance car I have right now.

I need to try and maximise income while keeping expenses as low as possible. Nothing better than knowing got plenty coming in and its all mine. Right now its kind of the banks as I owe them so much. I can afford it though just want rid asap.

atush

I meant once I have reached a "wealthy" stage I will buy an older one.

No you won't. Once you are well off and save in advance for the car you won't part with the money- I ought to know lol.

First to do is clear every single penny of debt off by the end of summer if possible so I can save a cash reserve by the end of the year. I will probably save up 16kish before I pay off debts so I'm not left debt free but skint.

No. Saving while having debtis useless. Save an emergency pot only and pay off ALL debt first before saving 16K.

Derivative

atush wrote: »

No. Saving while having debtis useless. Save an emergency pot only and pay off ALL debt first before saving 16K.

Indeed.

If you have 10k in on a 10% loan and 10k in 3% savings you are losing 7% of your wealth annually.

Emergency pot is needed to stop you having to take out more loans. Otherwise, slam anything that's higher than 3%.

rictus123

I have to pay it all off at once, if i pay it in stages then i get early repayment charges making it stupid to pay off early unless clearing the whole thing. So first couple of k will be emergency pot then the next 13k will be to clear the debt and i will still have the emergency pot so shouldnt need to get back in debt even if an emergency should arise.

If i do get wealthy then not want to part with the money then surely thats a good thing aswell then?! This is a learning experience if nothing else and i have learned alot already just by starting this thread. I will more or less post everyday to let everyone know what 1 bit of progress i have done that day in order to be a step closer to doing this.

atush

rictus123 wrote: »

I have to pay it all off at once, if i pay it in stages then i get early repayment charges making it stupid to pay off early unless clearing the whole thing. So first couple of k will be emergency pot then the next 13k will be to clear the debt and i will still have the emergency pot so shouldnt need to get back in debt even if an emergency should arise.

If i do get wealthy then not want to part with the money then surely thats a good thing aswell then?! This is a learning experience if nothing else and i have learned alot already just by starting this thread. I will more or less post everyday to let everyone know what 1 bit of progress i have done that day in order to be a step closer to doing this.

You told us the debt was 3 seperate loans. So you can pay them off one at a time? So you don't need to save 10K (much less than the 16K you posted earlier)

and you really need only 1K for emergencies if you are not taking holidays and are properly budgeting.

FLAPJACK

A fresh breath of fresh air, hearing someone so young having a plan for their life..good for you rictus!!

Just a thought though (in the present economic climate).... I think I understand rightly that you are self employed....have you researched the ease of getting a mortgage with that status, even with a hefty deposit? at the moment.

On to: "what do you include" to measure your status as a HNWI?...I have been advised when I asked the very same question a couple of years ago that "Net worth" was calculated as being what "liquid" cash you could lay your hands on at any given time.....as you rightly say a property that is worth x amount (after the mortgage is paid off) IS part of your wealth and in turn has become an asset ...in terms of your estate.

However you have to sell it first to realise (liquify) the cash invested in the bricks.

It would be interesting to ask what people here think is the cash fiqure to have in the bank to be thought of as either wealth or an HNWI.

Don't waiver from your ideal....wish my kids had had the foresight that you have..all the best to you.