Thursday, November 1, 2007

Goal Trackers

The “My Goals” section on this blog show my progress toward my net worth goals. Thanks to Clutter2Cash for the code.

I started tracking my net worth on a spreadsheet in 2006. I gave myself an arbitrary goal of reaching a $1M net worth by age 40. Hence the year 2012. A little bit too optimistic you think? Time will tell.

Assuming a consistent linear increase of my net worth, I will need a yearly growth of 20.4%. Here is the breakdown :

Starting net worth on Jan 1, 2006: $273,200
Target for Dec 31, 2006: $328,800 - Missed by $29,700 (9%)
Target for Dec 31, 2007: $395,800
Target for Dec 31, 2008: $476,400
Target for Dec 31, 2009: $573,400
Target for Dec 31, 2010: $690,200
Target for Dec 31, 2011: $830,800
Target for Dec 31, 2012: $1,000,000

In 2006 I fell short of my goal by 9%, mostly due to some investing mistakes that I would call “tuition”. I have learned from my mistakes and my investments are doing a lot better this year. As of October, I am just 3% shy of the goal for 2007. With 2 months left in the year, and with a little help from Mr Stock Market, there is a chance I can get there.

Obviously this rate of growth is not really sustainable. As I get closer and closer to 2012, it will get more and more difficult to grow my net worth by 20%. Even if my stock portfolio manages to grow by that much, the value of my house will definitely not, and neither will my savings capabilities. But at least it is something to go by.

1 comment:

Unknown said...

keep it up. a diary is awesome. congrats on how well you are doing and goal tracking.


howard