Monday 3 December 2012

Net worth tracking

I've been tracking my net worth since 2008, having originally started to monitor when i had sufficient cash saved to put towards a deposit on a home.  Over the last few years it has become a lot more sophisticated, including forward looking long term forecasts as well as the historic trend.

I do everything in excel. I like its flexibility and a lot of the personal finance software available seems focused primarily on the US market.

More recently i've started to model retirement scenarios, monitor objectives (for example trying to reduce my low yielding cash balances), place more focus on investment returns and monitor income & expenses in more detail.

Looking back, it is pleasing to see a steady positive trend, which is largely a reflection of both a low risk asset allocation and no major life expenses to put a dent in it along the way. In particular the last couple of years have seen its growth accelerate as income increased at a faster rate than expenses. Hopefully this trend will continue!

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