Net Worth

Hehe, I pretty much have no interest in that sort of thing.
Although I have looked up 1 or 2 musicians who aren't really big anymore.

 

Yep, I do have a tracker. I dream in numbers, after all Thanks for the prompt to update it - been a while.

The dollar value isn't of interest, but the rate of growth is. Going from $1 to $2 isn't too tough but add some commas and it becomes quite the challenge.

 

From that, I deduce that your PPOR cost you 100K, making you an easy millionaire. Going great guns after IP3. How did you do the graph? I'd be happy to plot the same.

 

Does the graph show profit or an increase in debt?

 

Google Sheets - easy. Put time in one column, net worth in another, labels in another then create a chart.

Net worth (assets minus debt).

 

I think I can do it without a graph, it looks pretty much like this:


Time Zero --------------------------------- Now

 

Here is the graph from Excel.



I track Total Assets, Total Loans, Net Worth and SMSF Balance.

The key trends for me, as we are self funded, is the SMSF Balance and to a lessor extent, Net Worth. If both of these continue to rise, then I know what we do is sustainable.

 

I need to start doing this. I was doing it using anz money manager, but its inaccurate and started blowing out figures unexplainably.

 

thanks for sharing
I never track my stuff other than liabilities vs assets, and working out net value. I think this is a good way to stay motivated and seems you doing well, good for you

 

Good stuff.
I might try to do something similar.

 

I actually have two graphs, the one I uploaded which shows 13 years of our journey.

The second one is the same data but is from September 2010 when my wife and I retired and we became self funded. It zooms in on our retirement period and:

• If our SMSF Balance and Net Worth continue to trend upwards (which they have so far), then we will continue to do what we are doing as it is sustainable (i.e we should not run out of money).
• If our SMSF Balance starts trending down but Net Worth continues to trend upwards, then we would review our discretionary spending and might consider cutting back on some of our absolute luxuries. We are half expecting that our SMSF Balance might trend downwards as we age (because the mandated percentage pension goes from 4% now up to 9% at age 85 to 14% at age 95). So, for trending downwards to be a problem, it is dependent on the rate of downward trend and our age.
• If both our SMSF Balance and Net Worth start to trend downwards, then we would review our whole portfolio as to the causes of the downturn, especially to our Net Worth. As we have more assets outside Super than in it, we are expecting the growth in these assets to be larger than any downward trend in our SMSF Balance. If this isn't the case, we need to find out why.

I have heard that a lot of retirees (especially self-funded retirees) are scared that they might run out of money. But they have little to no idea of their Super Balance and Net Worth and if they do, they don't perform any monitoring. To me, these graphs are our early warning system. They allow us to do what we do and to sleep at night.

 

Looks like a very good idea.
I'm still a ways off, but will try to get my spreadsheets in order too.

 

I think also stats show that most people don't grow wealth they live from week to week

A different story here, however I don't know too many people who own multiple properties or strategise so they can retire early.

MTR

 

The GFC treated you well

 

So am I - no-one is happier than me that everyone on Earth gets seriously rich.

I just have no interest in following that crowd's every movement of their personal lives.

 

ditto

 

Bought one business and four IPs between March 2007 and March 2008. As you can see from the graph, I doubled my amount of debt.

When there are fire-sales, most people run for the fire exits. I walk in the front door and help to put out the 'fires' with my cash hose .

 

Nice, curious your business what type of business if you care to share??

 

A business selling project management software, training and consulting.

 

Nice one.
Like Primavera P6?