My Net Worth Update for 2007 and Goals for 2008

Back in December 2005, I gave myself the goal of increasing my net worth to $1M in 7 years. I figured I needed a 20.4% yearly increase of my net worth over the next 7 years to reach that goal. Now that 2 years have gone by, it is time for a little update.

In 2006, my net worth increased only 9.5%, leaving me short of my December 2006 goal by $29,700. That was not the best way to start.

In 2007, my net worth has increased a whopping 26% ($78,000). It means that I am catching up, but I am still short of my initial December 2007 goal by $18,700. Most of the increase came from a higher savings rate thanks to a substantial pay raise. I also managed a decent but not extraordinary 10.4% return (including dividends) on my investments.

My net worth in December 2005 was $273,200. My year-end net worth goals are:

	Goal	Actual
Dec-06	$328,800	$299,100	Missed by $29,700
Dec-07	$395,800	$377,100	Missed by $18,700
Dec-08	$476,400
Dec-09	$573,400
Dec-10	$690,200
Dec-11	$830,800
Dec-12	$1,000,000

I feel that tracking my progress towards my goal is helping me tremendously. I have become more focused, especially in regards to managing my stock market investments.

The goal for 2008 is a net worth of $476,400 by December 31^st. That is another 26% ($99,300) increase from where I am now. I find it difficult to be very optimistic about 2008 outlook. I will have to rely more on stock market returns and less on straight income to grow my net worth. There is currently a lot of fear and indecision regarding where the economy is heading. I guess it is one more reason to be cautious and stay focused.

To a fun and prosperous 2008 !