Increasing your Net Worth
Options
Comments
-
Boosts to net worth:
1. Bought a business for £30k, worked very hard to build it. Sold it twenty years later for £600k.
2. Paid off mortgage, moved to much larger house, invested remainder to live off, having retired in mid-forties.
3. Investments turned around £400k into around £2m over the subsequent years (about 14), despite also funding our everyday lives.
Net worth tracked far too frequently by Google Sheets spreadsheet.I am one of the Dogs of the Index.4 -
MaxiRobriguez said:
I am on a similar salary to you though older at 40. Current DC pension(s) sit at just over £110k (£130k including S&SLISA) and my combined employer/employee contribution via sal sac is on average £1500 per month though I pushed through a fair bit higher on a bonus month. I can't see myself being able to maintain more than £1500 per month as child on the way and will be a sole earner for at least a year.
Current salary sac split is just above 30% a month though it's. Its not based on 65k but rather a lower base before monthly allowances are added (18 from me and 12 from employer).
Just curious how you strike a balance between building up your S&SISA Vs Pensions? There is a huge gulf in value between mine so S&SISA needs a lot of work.
I can't see myself in my same line of work in 10 years as I think there will be a lot of changes to come esp in my industry... streamlining of roles, outsourcing, tech advances etc So I just need to fill my boots while I can and subject to the continuing perks for higher rate salary to be siphoned into the pension.1 -
All very worthy and kind of ties in with the idea of "reversion to the mean" or "economic cycle" or "your turn next."
Works the odd time but mostly denial. Sooner you accept the direction of travel happens for a reason and go with the flow, the better.0 -
KoalaK32 said:What’s the best financial decision you’ve made that helped boost your net worth? Also, what tool do you use to keep track of your net worth?
Keep track on Bloomberg.0 -
noclaf said:MaxiRobriguez said:
I am on a similar salary to you though older at 40. Current DC pension(s) sit at just over £110k (£130k including S&SLISA) and my combined employer/employee contribution via sal sac is on average £1500 per month though I pushed through a fair bit higher on a bonus month. I can't see myself being able to maintain more than £1500 per month as child on the way and will be a sole earner for at least a year.
Current salary sac split is just above 30% a month though it's. Its not based on 65k but rather a lower base before monthly allowances are added (18 from me and 12 from employer).
Just curious how you strike a balance between building up your S&SISA Vs Pensions? There is a huge gulf in value between mine so S&SISA needs a lot of work.
I can't see myself in my same line of work in 10 years as I think there will be a lot of changes to come esp in my industry... streamlining of roles, outsourcing, tech advances etc So I just need to fill my boots while I can and subject to the continuing perks for higher rate salary to be siphoned into the pension.
It helps I don't have any really expensive hobbies. I'm still wearing clothes I bought from Primark 10 years ago. My biggest non-necessary expense each year is a season ticket to our local rubbish football club which costs £350.
We have some sort of desire to move house soon, so I might be reducing pension contributions to free up a bit more cash flow, but would still be putting in £1,700 minimum (including employer contributions).3 -
MaxiRobriguez said:noclaf said:MaxiRobriguez said:
I am on a similar salary to you though older at 40. Current DC pension(s) sit at just over £110k (£130k including S&SLISA) and my combined employer/employee contribution via sal sac is on average £1500 per month though I pushed through a fair bit higher on a bonus month. I can't see myself being able to maintain more than £1500 per month as child on the way and will be a sole earner for at least a year.
Current salary sac split is just above 30% a month though it's. Its not based on 65k but rather a lower base before monthly allowances are added (18 from me and 12 from employer).
Just curious how you strike a balance between building up your S&SISA Vs Pensions? There is a huge gulf in value between mine so S&SISA needs a lot of work.
I can't see myself in my same line of work in 10 years as I think there will be a lot of changes to come esp in my industry... streamlining of roles, outsourcing, tech advances etc So I just need to fill my boots while I can and subject to the continuing perks for higher rate salary to be siphoned into the pension.
It helps I don't have any really expensive hobbies. I'm still wearing clothes I bought from Primark 10 years ago. My biggest non-necessary expense each year is a season ticket to our local rubbish football club which costs £350.
We have some sort of desire to move house soon, so I might be reducing pension contributions to free up a bit more cash flow, but would still be putting in £1,700 minimum (including employer contributions).
I will need to review all my finances and then make some tweaks as I'm currently more in cash than investments (including pensions,Lisa and S&SISA). Not ideal though some cash is needed for short term expenses on the horizon. Given my employer can match 12-14% max on the pension I may need to be more aggressive on sal sac.1 -
noclaf said:MaxiRobriguez said:noclaf said:MaxiRobriguez said:
I am on a similar salary to you though older at 40. Current DC pension(s) sit at just over £110k (£130k including S&SLISA) and my combined employer/employee contribution via sal sac is on average £1500 per month though I pushed through a fair bit higher on a bonus month. I can't see myself being able to maintain more than £1500 per month as child on the way and will be a sole earner for at least a year.
Current salary sac split is just above 30% a month though it's. Its not based on 65k but rather a lower base before monthly allowances are added (18 from me and 12 from employer).
Just curious how you strike a balance between building up your S&SISA Vs Pensions? There is a huge gulf in value between mine so S&SISA needs a lot of work.
I can't see myself in my same line of work in 10 years as I think there will be a lot of changes to come esp in my industry... streamlining of roles, outsourcing, tech advances etc So I just need to fill my boots while I can and subject to the continuing perks for higher rate salary to be siphoned into the pension.
It helps I don't have any really expensive hobbies. I'm still wearing clothes I bought from Primark 10 years ago. My biggest non-necessary expense each year is a season ticket to our local rubbish football club which costs £350.
We have some sort of desire to move house soon, so I might be reducing pension contributions to free up a bit more cash flow, but would still be putting in £1,700 minimum (including employer contributions).
I will need to review all my finances and then make some tweaks as I'm currently more in cash than investments (including pensions,Lisa and S&SISA). Not ideal though some cash is needed for short term expenses on the horizon. Given my employer can match 12-14% max on the pension I may need to be more aggressive on sal sac.
If it helps, I've got:
£125k pension, of which 95% is in equity and 5% cash (cash being held for speculative stock purchases on dips)
£75k S+S ISA, of which 100% is in equity.
£120k mortgage remaining (on a £275k house)
£30k in the linked saving/offset mortgage (which is my emergency funds pot)
and £356 in current accounts
I don't particularly like being 95/100% in equity when markets seem so expensive but there's no real alternative. Bonds pay next to nothing and there's too much downside risk, cash is facing real inflation risk, gold's already had a good run, likewise other commodities. So, I've tried to balance out the equity - most of it's in tracker funds but there's a very deliberate overweighting to cash generative businesses that should be able to weather inflation better than most, companies like Unilever, BAT, RB etc.2 -
Looking back my best move was learning about low cost index trackers and income reinvestment in the early 2000s. Started off putting £50/month in which I have increased over the years. I've only dipped into the account once in the last 20 years (to help fund a house purchase) and now it is worth a healthy six figure value.
My investment portfolio has got a little more diverse over time but at the core of it all are still index trackers. The biggest lesson was just to think long term and not get obsessed about movements on a daily, weekly or monthly basis. When investing over the decades, even an occasional bad year is nothing to get worried about.3 -
MaxiRobriguez said:You should try and get the max matched contribution from your employer as it's free money.
If it helps, I've got:
£125k pension, of which 95% is in equity and 5% cash (cash being held for speculative stock purchases on dips)
£75k S+S ISA, of which 100% is in equity.
£120k mortgage remaining (on a £275k house)
£30k in the linked saving/offset mortgage (which is my emergency funds pot)
and £356 in current accounts
I don't particularly like being 95/100% in equity when markets seem so expensive but there's no real alternative. Bonds pay next to nothing and there's too much downside risk, cash is facing real inflation risk, gold's already had a good run, likewise other commodities. So, I've tried to balance out the equity - most of it's in tracker funds but there's a very deliberate overweighting to cash generative businesses that should be able to weather inflation better than most, companies like Unilever, BAT, RB etc.
Not sure I've got the guts to run that thin on cash MoM but I will max out S&SISA and LISA as a minimum for this tax year.
Due to my relatively higher cash, probably need to push harder on pension as inflation is already and will erode its value.
I have £114K split across 2 DC pensions and £20k in a S&SLISA. All 100% Equities passive barring the smaller pension in a active BG fund ( pricey but good performer)
I think £200k will feel like a positive milestone as hopefully compounding will have a bigger influence. Unfortunately due to quite strict work-related restrictions on investments I can't go too crazy but global trackers from the larger well established providers tend to be ok. I don't own any individual shares but been wondering if I am missing a trick there. A bit nervous about these markets but the choices for diversification don't offer much at the moment.0 -
KoalaK32 said:What’s the best financial decision you’ve made that helped boost your net worth? Also, what tool do you use to keep track of your net worth?
1. Buying houses with large mortgages. The power of leverage has turned £6,000 into nearly £1,000,000 over 2 decades.
2. An abacus. Ok, a spreadsheet.
1
Categories
- All Categories
- 343.6K Banking & Borrowing
- 250.2K Reduce Debt & Boost Income
- 449.9K Spending & Discounts
- 235.8K Work, Benefits & Business
- 608.8K Mortgages, Homes & Bills
- 173.3K Life & Family
- 248.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards