$25k to $100k Net Worth in One Year
My net worth increased from $25,677 to $104,853 in just over a year.
Your net worth is your assets minus your liabilities, leaving you with a net position in terms of wealth.
Assets are items that have value, liabilities are items/things that you owe money on.
Tracking your net worth is motivating, especially when you’re set on getting rid of debt and growing your financial positions.
The growth in my net worth, as shown by the graph above, can be attributed to three major things:
- Having a high income (~$90k AUD) relative to my previous income (~$45k) from previous years.
- Saving ~40% of my take-home income in 2020.
- Investing my saved income in diversified exchange-traded funds.
As I’m currently renting, my net worth is comprised of different investment portfolios, superannuation, and cash (assets). My only liability is my university degree debt of ~$35k (liability).
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Do you track your own net worth? If you haven’t done it before, it’s a very simple process that you can do on paper, and if you wanted a bit more help, there are online calculators that can help you through it.
My goal in 2021 is to grow my net worth to $200,000!
Nathan